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2022 Health Tech Industry Accounting Guide

Insights on accounting issues in the health tech industry

Companies in health tech, or the converging technology and health care and life sciences industry, face unique accounting challenges. Explore our guide for insights on the specific complexities today’s health tech professionals face.

The emerging health tech marketplace

A look into the future reveals a world where care will be organized around the consumer, rather than around the institutions that drive our existing health care system.

Factors such as COVID-19, value-based care, data liquidity, consumer expectations, digital transformation, and virtual health are transforming health care and life sciences organizations and driving investments in health tech. The Future of HealthTM further reveals that, in the face of new demands from more educated consumers, increased competition from nontraditional players, greater transparency of pricing, and data exchange focused on standardizing clinical pathways, the migration from care to health to wellness is already unfolding.

2022 Health Tech Industry Accounting Guide

These forces are varied and complex. With exponential increases in demands on capital and talent, they are too large to be solved by any one organization. Many health tech innovators are realizing that, in order to thrive in the future, new business models will be needed. One such model can be through platform-enabled ecosystems.

As health tech investments continue to grow at an unprecedented pace and health tech IPOs and large M&A deals are likely to accelerate, this third edition of our guide is aimed at supporting professionals in this industry by offering our perspective on the emerging health tech marketplace, identifying and providing guidance on the most difficult technical accounting issues, and presenting relevant research on health tech investment trends.

What’s inside the 2022 guide?

The 2022 Health Tech Industry Accounting Guide can help address the unique set of challenges health tech companies face. Accounting professionals can use the guide throughout the year as they navigate four key issues.

Special-purpose acquisition companies

Health tech companies are frequently turning to SPACs to mitigate the increased market volatility risk of traditional IPOs.

Capitalized software

What guidance should health tech companies apply to the development of proprietary software to serve their customers and clients?

Revenue recognition for health tech companies

Find guidance on applying revenue recognition to common arrangements in the health tech industry, including contracting, pricing, and modifications.

Costs of obtaining a contract

Read more for comprehensive guidance on accounting for the costs of obtaining a contract within the scope of ASC 606.

Related insights

New business models in health care: Building platform-enabled ecosystems

Health tech innovators are investing in the Future of Health through platform businesses.

Life Sciences Industry Accounting Guide

We also encourage you to review Deloitte's Life Sciences Industry Accounting Guide, which includes additional guidance relevant to health tech companies.

Special thanks to the following who contributed to the success of this report:
Joe Perfetto, Bill Love, Victoria Boegh, Joanne O’Brien, Mark Hindes, Nicola Lostumbo, Krystal Kort, and Amanda Palzer

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