April marks a quieter period in the realm of big imaging IT product, partnership or acquisition news, which could be attributed to the lull between conferences, with vendors looking to use the upcoming Society for Imaging Informatics in Medicine (SIIM) conference in Maryland to generate new buzz.
Below Amy Thompson, Manav Patel and I have composed a handful of highlights from the month:
Reporting Revolution
One notable highlight this April was Smart Reporting GmbH‘s Series C funding round, whereby the company raised €23 million, adding to the €21 million raised previously. The sizable funding round demonstrates the resilient market interest in reporting solutions and the intrigue in innovative technology, such as generative AI in reporting. Smart Reporting has earmarked the new funds for product development and further expansion into key markets such as the US, Canada, Australia and New Zealand. The funding will build on the expanded partnership with Solventum (previously 3M Healthcare), with efforts emphasised towards the US market, which was confirmed at RSNA last year.
The short-term outlook for radiology reporting will prove interesting, with new “challenger” vendors seeking to make a splash and erode the dominating position of Nuance Communications (now Microsoft). Rad AI, Sirona Medical as well as imaging IT vendors alike will be evaluating steps towards AI integration, voice command to promote zero-clicks, as well as generative AI and auto-impressions in the hopes of disrupting the status quo.
Workflow Enhancements
Newcomer to the workflow orchestration space, NewVue.ai, announced two reseller agreements this month, with imaging equipment and IT distributor Electromek Diagnostic Systems, Inc., and VNA specialist InsiteOne, LLC. Adding to the Mach7 Technologies partnership, announced at RSNA last year, these agreements represent the fledgling workflow company getting itself on a war-footing to make an impact on the US workflow orchestration market. The demand on workforce orchestration (either standalone or part of enterprise imaging deals) to drive efficiency continues to intensify. A recent study by the Harvey L. Neiman Health Policy Institute, revealed that overall reimbursement per Relative Value Unit (RVU) has declined for physicians, with procedural specialities exposed to the largest decline.
Beyond the opportunity it affords NewVue, for imaging IT vendor InsiteOne, it bolsters the vendor’s portfolio, which expanded following the acquisition of BRIT Systems(PACS / RIS), allowing the vendor to compete in enterprise imaging for radiology deals going forward.
Contract Wins Reflect Wider Trends
Although overall announcements were lower this month than previous, there were a number of contract awards announced in April. Newcomer Synthesis Health announced the go-live for a sixth site in the US on its cloud-native radiology operating system. Additionally, there were a handful of enterprise imaging (radiology-centric) contract announcements from Sectra, AGFA HealthCare and Intelerad, in Germany, Pakistan and the US respectively.
Our preliminary data from the upcoming Imaging IT – World 2024 report forecasts the global radiology IT market will grow 3.6% in 2024, building from the 5.1% witnessed in 2023. Although the deal volume observed to date in 2024 is a positive sign of investment across imaging IT, it’s important to note that many of those deals closed would have started in 2023, even 2022 in some instances. Therefore, the question becomes for vendors, how can they build a pipeline short-term to sustain growth as volatility looms over the market?
Outlook For The Future
While April may have been a relatively subdued month for the world of imaging IT, the developments discussed are all indicative of the wider trends experienced in the market currently. Funding amongst smaller or specialised vendors in imaging IT is expected to continue in Q1 (April-June), beyond funding, market consolidation in mature markets is also anticipated with M&A re-entering the forefront of vendors mind as economic variables settle. Demand for workflow orchestration and efficiency tools will persist, with financial pressures, workforce shortages and increasing imaging volumes all placing unsustainable pressure on healthcare systems. GE HealthCare‘s confirmed acquisition of MIM Software this month, as well as Sectra’s recently announced partnership and FDA approval with Leica Biosystems, will continue to prompt an enterprise-wide discussion as deals increasingly move beyond radiology.
If you have any questions about the developments discussed here, or have any research requirements for the wider Imaging IT market I’d be more than happy to discuss, please feel free to message me on LinkedIn or reach out via email at jake.bennett@signifyresearch.net
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Signify Research’s imaging IT service provides expert market intelligence and detailed insights across radiology IT, cardiology IT, and advanced visualisation IT, alongside operational workflow & business intelligence tools. Combining primary data collection and in-depth discussions with industry stakeholders, our thorough research approach yields credible quantitative and qualitative analysis, helping our customers make critical business decisions with confidence. Throughout the course of 2024, the imaging IT team will be further assessing developments in the market through its’ Imaging IT Market Intelligence Service.
About The Author
Jake is the Senior Market Analyst on the Imaging IT team and joined Signify Research in late 2023, after over half a decade in the medical devices and healthcare market research industries.
About Signify Research
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