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e-health revenues rose more than 80% in 2000 compared with 1999, topping $1.7 billion last year, according to Seizing the eHealth Opportunity, a report published by Corporate Research Group. But losses increased at an even higher rate, totaling $4 billion in 2000, a 400% increase over 1999. In addition, 2000 saw a corresponding decline in funds raised from public offerings: $484 million in the first nine months of 2000 versus $1.2 billion for the year in 1999.

CRG expects e-health revenues to continue to grow, topping $2.4 billion in 2001 and $3 billion in 2002, with most of the increases occurring in the connectivity and productivity markets. Content and e-commerce providers have the least chance of success in the e-health world, according to CRG, and market conditions will have a negative impact on the number of online pharmacies, supply chain vendors, and content providers.