Economic Downturn Can Still Spell Success for Medical Devices
Medical device makers navigating today’s economic climate have more hurdles to jump than in the post-Covid investment boom of 2021, and the tighter market demands a purposeful approach from those of us looking to bring new technology to market.
Health technology investors have taken a more selective approach1 in the healthcare space in 2023. That marks a continuing trend from the end of 2022 as digital health startups raised only half as much funding in 2022 as they did in 2021, according to a report from Rock Health.2 In addition, slimming operating margins for health systems have reverberated across the market. About half of all hospitals in the U.S. recorded3 a negative operating margin last year and hundreds4 of hospitals face the prospect of closure in 2023.