Morning Briefing
Summaries of health policy coverage from major news organizations
Epic's AI Early-Warning Health Tool Found Lacking: Yale Study
In the early days of the Covid-19 pandemic, hospitals were desperate for ways to manage the flood of seriously ill patients. Many turned to an artificial intelligence algorithm developed by Epic Systems, the electronic health record company, to predict which patients were most likely to rapidly deteriorate so they could get the critical care they needed. (Palmer, 10/15)
There鈥檚 an adage in venture capital circles that a company will raise money as long as it slaps an 鈥淎I鈥 sticker on its packaging. The trend is especially pronounced in healthcare, a sector that has struggled to automate its processes and is looking to make up for lost time. New York鈥檚 market for health-tech companies in the AI rush has exploded. As of October, venture capital investments in New York-based health companies using AI have already surpassed $1 billion, up from $670 million in all of 2023 and $530 million in 2022, according to the research firm PitchBook. (Geringer-Sameth, 10/14)
The celebratory pomp and circumstance of an initial public offering may not last long for digital health companies going public聽in 2025.聽As a potential new wave of digital health companies look to IPO in 2025, the weight of the sector will be on their shoulders. They聽will have to convince public investors聽that digital health聽companies can run聽durable, financially sound聽businesses, experts say.聽(Turner, 10/15)
UnitedHealth Group Inc. shares plunged the most in four years on Tuesday after its forecasts for 2024 and 2025 fell short of investors鈥 expectations, a rare stumble for the health-care giant. The company hasn鈥檛 issued an early outlook that missed Wall Street鈥檚 view for years. The forecast reflects persistent hurdles, including rising medical expenses and stricter federal reimbursement rules that are cutting into revenue. (Tozzi, 10/15)
Also 鈥
The Service Employees International Union Health Care Michigan (SEIU) Healthcare Michigan announced on Monday it had reached a tentative agreement with the University of Michigan Health, avoiding a work stoppage on Tuesday. The union did not provide details on the three-year agreement but said it allows "workers to move forward and keep their focus on taking care of Michiganders," according to a news release. (Booth-Singleton, 10/15)
