Is Digital Health losing its shine?

Yikes! Last month I posted about the very cool experience of using the Cue Health reader to get quick and accurate COVID test results from the privacy and convenience of my own home. This is where I imagine the future of health care. And yet…per my daily mobihealthnews newsletter, Cue Health just laid off 170 workers.

Sure, this is ostensibly driven by the shift of federal resources away from COVID testing (to focus on vaccines and treatments. But Cue Health is not the only digital health company reducing their workforce. Ro, Noom, Cerebral, True Pill and Carbon Health recently reported lay offs as well.

So is the trend towards digital health slowing down? Probably not. I still believe healthcare will continue to evolve to rely more and more on digital and tech-driven solutions. In the short-term, companies need to focus on profitability as the market faces a lot of volatility. A lot of start ups went on hiring streaks upon receiving infusions of capital, and they need to tighten their belts for now.

While not all of the digital health companies will survive these tumultuous times, I believe those that do are the ones that are focused on efficiently solving the most pressing problems, addressing the most widespread and urgent needs.