In other healthcare news, Amazon Health Services is cutting hundreds of employees from its One Medical chain and Amazon Pharmacy. The FDA is working to make pulse oximeter readings more accurate for darker skin. CVS Health reported a net income of $2 billion due to a significant increase in Obamacare enrollment. Rite Aid completed the sale of its Elixir pharmacy benefit management company to MedImpact Healthcare Systems for $576.5 million. Eli Lilly shares jumped after the company reported better-than-expected fourth quarter results.
Key takeaways:
- Venture funding for New York-based digital health startups was down in 2023, with 114 companies raising $2.5 billion, significantly down from the all-time high of $9 billion in 2021.
- Despite the funding decrease, the digital health community remains optimistic about 2024, with only 39% of founders, investors, payers, and providers surveyed expressing concern about the economic environment negatively impacting business.
- There is a shift towards more funding for early-stage companies, with 55% of funding in 2023 going to these companies, compared to 39% in 2022.
- Amazon Health Services is cutting hundreds of employees from its One Medical chain and Amazon Pharmacy, marking the latest round of job cuts after a challenging 2023.