The healthcare IT vertical comprises software used by healthcare providers and payers. Q1 2023 saw 70 VC rounds closed for a total of $1.3 billion, a bump up from Q4’s low point but still well off the pace set in 2020 to 2021. 27 PE deals also closed in the quarter, roughly flat from Q4. Despite lackluster deal flow, the opportunity and urgent need for improvements in healthcare delivery, reimbursement, and operations continue to drive interest in healthcare IT. The Healthcare Information and Management Systems Society (HIMSS) Conference, the industry’s flagship conference, which was held on April 17 to 21, 2023, represents a useful bellwether. The event highlighted generative AI and interoperability solutions—both of which fall into the category of potentially transformative but currently limited in use case

January 26 Pearl, a value-based care enabler, raises $55.0 million. By the end of the quarter, two other second-generation enablers, Vytalize and Wellvana, will raise sizable round

March 20 Microsoft-owned Nuance announces DAX Express, an iteration on the company’s Dragon Ambient eXperience clinical documentation product that integrates GPT-4. The announcement reinforces the company’s leadership in clinical documentation AI

March 29 UnitedHealthcare announces its intention to reduce its prior authorization by 20%, maneuvering amid growing political attention on alleged prior authorization overutilization, especially by Medicare Advantage plans

March 7 Atrium Health announces a partnership with Best Buy to develop a hospital-at- home program. Best Buy had previously moved into the remote care space via its 2021 acquisition of Current Health and other deal