Daily Briefing

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Around the nation: Megadeals powered digital health funding in Q1


According to new data from Rock Health, digital health funding was largely driven by megadeals worth $100 million or more in the first quarter of the year, in today's bite-sized hospital and health industry news from California and the District of Columbia. 

  • California: Hims & Hers recently reported that it was impacted by a "sophisticated social engineering attack" in February. According to Hims, an unknown third party gained unauthorized access to service tickets between Feb. 4 and 7, with the company first discovering the suspicious activity on Feb. 5. In response, Hims took steps to secure its customer service environment and launched an investigation. Neither customer medical records nor any communications with healthcare providers were accessed during the incident. "We have confirmed that our electronic medical record and communications with healthcare providers on our platform were not accessed," a company spokesperson said. "Third-party access was limited to our customer service software platform, and data accessed primarily included customer names and email addresses." Hims has notified law enforcement about the incident and is currently reviewing its internal policies and procedures to reduce the likelihood of a similar situation occurring again. (Jones, Healthcare Dive, 4/6)
  • California: According to new data from Rock Health, digital health funding was largely driven by megadeals worth $100 million or more in the first quarter of the year. During Q1, 110 digital health companies received $4 billion in funding, an increase of $1 billion compared to Q1 of 2025. The average deal size also increased, going from $24.1 million in Q1 2025 to $36.7 million in Q1 2026. It is also the highest single-quarter average since the fourth quarter of 2021. There were also several megadeals worth $100 million or more. Verily, Talkiatry, Qualified Health, and Honest Health all secured funding rounds of $100 million or more while eMed and OpenEvidence secured over $200 million in funding. Whoop, a wearable tech company, had the largest funding deal at $575 million. Currently, Rock Health predicts that there will be roughly 50 mega deals in 2026, which would almost double 2025's total. (Famakinwa, Modern Healthcare, 4/8)
  • District of Columbia: Late last month, the U.S. Supreme Court ruled against a Colorado law banning conversion therapy for LGBTQ+ youth. In an 8-1 majority, the justices ruled that although the law banning conversion therapy was aimed at licensed professionals, it did not overrule free speech protections. In the majority opinion, Justice Neil Gorsuch wrote the law "censors speech based on viewpoint" and that the First Amendment "stands as a shield against any effort to enforce orthodoxy in thought or speech in this country." In a dissent, Justice Ketanji Brown Jackson argued that medical speech was different from generic free speech, and that states should be free to regulate healthcare, even if it results in incidental restrictions on speech. "In the worst-case scenario, our medical system unravels as various licensed healthcare professionals — talk therapists, psychiatrists, and presumably anyone else who claims to utilize speech when administering treatments to patients — start broadly wielding their newfound constitutional right to provide substandard medical care," Jackson wrote. The Supreme Court has sent the law back to a lower court, which will now reconsider it under higher scrutiny. Currently, over 20 states have banned conversion therapy for minors, and the Supreme Court's decision will likely render most of them unenforceable. (Lotz/Walker, Axios, 3/31; Associated Press/Med Page Today, 3/31)

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