This holds true within the mental health space and largely within the digital health startup landscape. Similarly, we have seen a dramatic shift in market valuation multiples for digital health companies. The information contained on this site does not constitute a financial, legal, fiscal or any other recommendation. As we redesigned GI care into a patient-centered, value-based model, we recognized that our virtual care supports many important clinical needs, but we also needed to bridge our services with in-person care like colonoscopies and diagnostic tests. However, we believe that a highly selective portfolio of fast-growing, transformative and disruptive companies offering digital technologies that improve healthcare services and systems while lowering costs can quickly bounce back from short-term stock market trends. 5 paragraph 1 and 3-4 FinSA and Art. Digital health - WHO | World Health Organization In December, Oracle, a sector outsider, issued a USD 29 bn takeover bid for Cerner, one of the two major providers of hospital software in the US. Changes in foreign-exchange rates may also cause the value of investments to go up or down. With recession concerns looming, H2 2022s quarterly average of $2.4B may be a bellwether for the next several quarterswhich means that 2023 could be digital healths first $10B or lower year in venture funding since 2019. . Hannes Schobinger on LinkedIn: Q4 2022: How did the Swiss valuation Providers like nurse practitioners, physician assistants, health coaches, nutritionists, counselors, and pharmacists have served as critical providers in the healthcare system given the physician shortage and the high cost of hiring a large physician team. EBITDA Multiples by Industry | Equidam Trends in Digital Health Funding and Transactions: A Tremendous Year So Far But the principle driving revenue multiples is that startups of a particular industry operate in similar . The average price-to-EBITDA multiple for hospitals was 9.5x in 2011, a 4.4 percent increase from 2010. Therefore, particular importance is attached to ensuring that these sites are not intended for legal entities or natural persons, who have their registered office or who reside in such countries, their territories or dependencies or who, on account of their citizenship or similar status, are subject to the law of one of these countries. While diminishing margins have forced big healthcare organizations (especially health systems) to focus on near-term needs, successful players will continue to plant seeds for better seasons.