In an industry that requires added trust between patients, providers, investors and companies, following Mr. Zuckerberg’s advice can be destructive. Take for example birth control medication provider Nurx, which raised $41 million in funding. Earlier this month the company was found to be storing pills in a shoe organizer hanging in a closet, CNBC reports.
UBiome has also been in the hot seat after being raided by the FBI last week for its alleged fraudulent billing practices. The company, which developed SmartGut, raised more than $100 million in venture funding.
Investors are betting big on health-tech companies, funding more than $3.5 trillion. However, for those looking to invest it is important to look past the technology.
“For one, they should pay as much attention to the chief medical officer as the chief revenue officer,” CNBC reports.
Other companies like Virta Health and Omada Health, which are focused on diabetes, are moving slowly when it comes to going public. Instead of moving fast and breaking things, the companies are developing evidence to support their medical claims.
More articles about health IT:
SpaceX sends ‘organs on a chip’ to space to study physiological reactions to microgravity
FDA approves Medtronic’s iPad-based remote pacemaker programming system
Trump signs executive order to upskill federal workforce on cybersecurity
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.