The acquisition comes as the health sector sees increased investment due to its use of artificial intelligence (AI). Major firms and tech giants are investing in AI healthcare startups, while public healthcare organizations are experimenting with new technologies such as AI and robotics to improve patient care and reduce costs.
Key takeaways:
- Private equity firm Thoma Bravo is reportedly close to acquiring health records software firm NextGen Healthcare, which is valued at $1.3 billion.
- NextGen provides cloud-based technology services that health providers use to manage patient records, and the acquisition comes as the health sector sees increased investor interest due to its use of artificial intelligence (AI).
- Major firms and tech giants, including Andreessen Horowitz, General Catalyst, Menlo Ventures, Lux Capital, Google, and Amazon, are investing in AI healthcare startups.
- Despite the potential of AI in healthcare, fragmentation in the U.S. healthcare landscape could be holding back innovations like generative AI that could help patients and providers more effectively manage healthcare.