Dig­i­tal health com­pa­nies fu­el­ing NYC econ­omy

Modern Healthcare - - REGIONAL NEWS - —Jonathan LaMan­tia, Crain’s New York Busi­ness

New York City has emerged as a ma­jor hub for health­care tech­nol­ogy com­pa­nies be­cause they can take ad­van­tage of the area’s renowned aca­demic med­i­cal cen­ters as po­ten­tial in­vestors and test­ing grounds, ac­cord­ing to a new re­port from the not-for­profit Cen­ter for an Ur­ban Fu­ture.

The city is sec­ond only to the San Fran­cisco Bay Area in terms of ven­ture cap­i­tal in­vest­ment in dig­i­tal health and is home to com­pa­nies with bil­lion-dol­lar val­u­a­tions, such as Zoc­doc, Flat­iron and Os­car.

New York City-based dig­i­tal health com­pa­nies re­ceived $908 mil­lion in ven­ture fund­ing last year, a nearly ten­fold in­crease from 2010, when 15 com­pa­nies raised $93 mil­lion, ac­cord­ing to the cen­ter’s re­port.

There are al­most 100 New York com­pa­nies in the sec­tor, with at least eight of them em­ploy­ing 50 or more work­ers. Given the in­dus­try’s growth po­ten­tial, dig­i­tal health should be part of the mayor’s plan to cre­ate 100,000 jobs that pay more than $50,000 a year dur­ing the next decade, said Jonathan Bowles, ex­ec­u­tive di­rec­tor of the Cen­ter for an Ur­ban Fu­ture. Bowles rec­om­mends that the city help cre­ate a more cen­tral­ized dig­i­tal health ecosys­tem by form­ing cam­puses with af­ford­able of­fice space and host­ing net­work­ing events.

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