August 2006

Health Web sites attract investments

Recent changes in the healthcare market have resulted in investors funding health information Web sites. Traditionally, companies have failed to make money from online healthcare businesses, but the market has evolved enough to make it profitable, according to investors, entrepreneurs, and analysts.

Currently, WebMD is the “dominant player in the field,” but other sites plan to enter the market in the coming months. For example, Tine Warner later this year is set to launch EverydayHealth.com, a site that is intended to deliver personalized health information to more than 11 million people. The Carlyle Group, Allen and Sequoia Capital last year purchased HealthCentral Network, which features a network of 25 condition-specific destinations that offer physician-reviewed information and a format that facilitates conversations among people with the same illness.

Steve Case, founder of America Online, and investors are set to launch Revolution Health in the fall. The site, Revolutionhealth.com, will offer a searchable encyclopedia of disease information, tools for finding physicians, making appointments, and managing health-related expenses. Revolution Health also will invest in walk-in retail clinics.

Source: Washington Post, www.washingtonpost.com

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