Basel Kayyali

The (Healthcare) Ground Beneath Our Feet… This year it is likely that over $10 billion will be invested in the digital health sector – a robust amount, no doubt, but inconsequential when compared to the amount of capital tied up in healthcare real estate assets, which is estimated to be $1.2 trillion by Jones Lang Lasalle. Of that amount, approximately $790 billion is in the hospital sector while the remaining $490 billion is in medical office assets. It is estimated that there are 48.6k facilities with 3.4 billion square feet of healthcare real estate, 42% of which are owned by REITs and another 33% held by other private investment vehicles. Much of the digital health investment is meant to make the physical healthcare infrastructure more productive: greater operating efficiencies, greater patient throughput, more relevant personalized care models with better outcomes. As the healthcare system is being pushed to be more distributed to lower cost sites of care, accelerated now by the rapid proliferation of automation and AI capabilities, the potential impact on healthcare infrastructure assets will be profound. Thoughts on what that might look like... https://lnkd.in/eTfAdUbS #digitalhealth Flare Capital Partners

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Join us tomorrow for a panel discussion on the complex relationship many FirstGens have to money and how that affects founders, investors, operators and others. See you tomorrow! https://lu.ma/9rixyzgs

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John Kell's recent article in Fortune, "The best investment opportunities in AI for health care right now," provides incredible insights about the challenges of healthcare data and how it impacts the advancement of #ai. Three out of every four leading health care companies are experimenting with generative AI or attempting to scale it across their business. What are they creating and why? Venture capitalist Deena Shakir asks founders if they "are aiming to solve a technology problem or a clinical adoption problem". Solving existing problems will speed decision making and improve data quality. The Deloitte report:  “Navigating the Emergence of Generative AI in Health Care” shares some of the data challenge in health care. While boasting the largest source of raw data, 80% of the data are unstructured.  Simon Gisby, managing director and the global leader of life sciences and health care at Deloitte further expounds "But as an industry, we’re not surprisingly that good at analyzing and drawing correlations out of that" https://lnkd.in/gXE_HVG2 Read thus great article for use cases and examples from fertility and maternal health care to predicting adverse outcomes to drug development and immunotherapies. The future of health and #ai is the hope that we can provide value in health care data equal to the volume we produce Read the article here: https://lnkd.in/gTx6ic_b

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Excited to announce Frist Cressey Ventures' investment in Qualified Health and privileged to partner w/ SignalFire, Healthier Capital, Town Hall Ventures and others!   Healthcare costs are increasing at a faster rate than ever before, with the US spending nearly twice as other wealthy countries and still ranking bottom in outcomes. It's a story you've all heard - - US healthcare is known for astronomical inefficiencies, waste, workforce supply constraints, fragmented access, appalling patient experiences, and driving patients and businesses into debt.   Yes these problems present opportunities. But opportunities are limited to the system's appetite for change, desire and incentive to try something new and the innovation available. At FCV we believe we've hit the trifecta with Generative AI. Generative AI has given us truly transformational tools in the toolkit and the healthcare ecosystem is demanding to absorb its benefits. This perfect collision of supply and demand means healthcare is poised for big change.   Generative AI is everywhere, it's buzzy, it dangles hope and opportunity. But many things need to be true for the Gen AI transformation in healthcare to take hold, such as but not limited to:   💡 Patient lives and data need to remain safe: We believe in a highly regulated and human life-touching sector such as healthcare we must ensure Gen AI can drive to unrivalled savings and improvements in the quality of care WHILE not putting patient lives or data at risk.   💡 Systems need to own their utilization of Gen AI: We believe systems will use some hybrid of external partners and homegrown solutions but importantly will want full control of data provisioning and utilization as well as the ability to solve an unlimited number of nuanced issues and not cookie cutter algorithms.   💡 Costs need to be looked at on an enterprise level: We believe the speed of innovation in Gen AI means costs will continue decreasing dramatically but at an enterprise level this will still not be a small detail. Systems will want the ability to understand costs and delegate as needed for the outcomes desired at the organizational level.   Enter Qualified.   We knew when we met Justin Norden, MD, MBA, MPhil and team we were standing in front of changemakers. These individuals have lived and breathed the true application and implementation of Generative AI far before we were asking ChatGPT to write our emails. In fact, if you’ve ever driven in a Waymo you’ve benefited from past products this team has built.   Qualified Health is on a mission to enforce governance in Gen AI, allow systems to rapidly build for their needs, monitor and make decisions for all GenAI (homegrown and external) and accelerate the value the sector can glean from these new technologies.   Huge shout out to William T., Tommaso Auerbach and Jamie Kuntz for their hard work!

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I’ve had the chance to go deep with a number of digital health alum, healthcare mentors and #corporate innovation partners over the past few days. A few themes to share:   1. Digital will change healthcare. Period. How is hard. But it will happen and the best are continuing to push ahead. 2. What keeps companies in the S&P 500 for 50 years or more? Partnerships and innovation. This is why large systems must practice the hard art of both partnership and partnership towards innovation. For startups, partnership reps may be more important than brand. 3. There is a difference between needs and behaviors that startups need to understand, especially in Healthcare where incentives, process, practices are complex. Finding who pays early is not only essential but existential. 4. Don’t optimize for valuation, optimize for value. Over the long-run, this is what will matter. In Healthcare, today value will have to tie to ROI. Pharma, providers, payors are under pressure. Your solution needs to be must-have and drive ROI.   MC Healthcare was launched over 5 years ago to accelerate industry/startup intelligence and collaboration and commercial partnerships for digital health startups and industry (payors, providers, pharma). Calling startups to apply. Want to be a partner to find and work with the best? DM me directly.

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I’m optimistic about the potential of generative AI to reduce provider burnout and improve provider-patient interactions. However, that optimism is tempered by the data that indicates the technology is not quite ready yet. Bright Ventures is interested in digital health founders who understand the realities of provider-patient interactions, and the role technology can play in strengthening clinical outcomes. Which founders and teams are getting this right? Tag them in the comments below.

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Today's post is about our commitment at Bread and Butter Ventures to investing in women's health within our healthcare vertical, which is a big focus of our fund. Our mission in healthtech broadly is to invest in technology that democratizes access to quality care for all. A report this year from Deloitte shared that investment in women’s health rose by 5% between 2022 and 2023 - heading in the right direction, however, women's health represented just 2% of the $41.2 billion in venture funding that went to health companies in 2023, according to Deloitte’s analysis. There is such tremendous opportunity to innovate and invest for half the world's population. This an economic imperative. Spotlighting today 5 outstanding healthcare startups innovation in women's health who are very proud to have in our portfolio: ⭐ Gabbi: is building a comprehensive breast cancer risk assessment and early detection platform, combining cutting-edge technology with personalized care. As a woman's virtual breast specialist, Gabbi ensures every woman knows her risk and has access to early detection via telehealth. https://www.gabbi.com/. Shoutout Kaitlin Christine ⭐ Chiyo: is a personalized & integrative food-as-medicine platform that helps the next generation of mothers looking for guidance as they navigate the acute transitions of fertility, pregnancy and post-partum. https://wearechiyo.com/. Shoutout Irene Liu ⭐ Delfina: is creating an AI-powered pregnancy care platform to solve the global maternal health crisis. Delfina lowers rates of adverse outcomes, hospitalizations, and NICU stays to deliver substantial savings for health plans and risk-sharing providers. https://www.delfina.com/. Shoutout Senan Ebrahim, MD, PhD Priyanka Vaidya Ali Ebrahim ⭐ Nest Collaborative is the first to create a nationwide network of lactation consultants, available to mom 24/7 through virtual consultations. We were also the first to offer mom a no-cost, insurance-paid experience - which means when she has a problem we can connect her with a consultant within hours and we take care of all the payment and paperwork on the back end. We are, in all ways, her BFF - Breast Feeding Friend. https://lnkd.in/gKCVYvtF. Shoutout Judith Nowlin ⭐ Myya: provides breast cancer survivors completely customizable, fully insurance billable post-mastectomy prosthetics with a state-of-the-art fitting experience online and in-person. https://myya.com/ Jasmine Jones #womenshealth #digitalhealth #venturecapital #startups

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One key reason why healthcare technologies like AI, telemedicine, and software haven't structurally lowered costs or broadened access for the entire system after decades of experimentation (excluding pure financial engineering of payer contracts) is the limited reimagining of care delivery itself, with asynchronous telemedicine as a notable exception. In the same way that digitizing physical paper failed to exploit the capabilities of a new computing medium for word processing, hosting physician-patient conversations over video does not transform the actual delivery of care. In telemedicine, many of the inputs (e.g., clinician time) and therefore cost structures of in-person care persist, which is why we often see fee-for-service telemedicine companies struggle to achieve economies of scale (i.e., growing revenues non-linearly while growing costs linearly). Until we deconstruct the components of a medical appointment – from intake and triage, to chart review, history gathering, physical examination, diagnosis, treatment, and follow-up – we will continue to be underwhelmed by the disconnect between the transformative potential of these technologies and real-world patient/system impact. I’m optimistic that the emergence of reliable and performant medical AI agents will urge us to perform this deconstruction and redesign the fundamental building blocks of a “medical appointment.”

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🌟 Generative AI and Healthcare Transformation: A New Era of Innovation 🌟 I am constantly asked about #AI applications for healthcare transformation. I continue to take people back to the pain points or problems being solved. The healthcare industry is undergoing a significant transformation, driven by the integration of generative AI. This revolutionary technology is currently reshaping the way we approach care management, early disease detection, and administrative tasks. Early Benefits of Generative AI: Enhanced Care Management: AI serves as a "co-pilot" for healthcare professionals, assisting in managing patient care more efficiently and accurately. This leads to improved patient outcomes and more personalized care plans. Early Disease Detection: AI's ability to analyze vast amounts of unstructured data enables early identification of diseases, potentially saving lives and reducing healthcare costs. It's a game-changer in preventive healthcare. Reducing Clinician Burnout: By automating repetitive administrative tasks, AI allows clinicians to focus more on patient care. This not only improves job satisfaction but also enhances the quality of care provided. Affordability and Efficiency: AI-driven processes streamline operations, making healthcare more affordable and accessible. From optimizing workflows to reducing operational costs, AI is paving the way for a more sustainable healthcare system. Challenges and Considerations: Ethical and Legal Frameworks: Ensuring AI is used responsibly requires robust ethical, legal, and policy frameworks. Trustworthy AI adoption is crucial for patient safety and health equity. Technology Infrastructure: Organizations need to update their technology infrastructure, including cloud capabilities, to fully support AI implementation. As we embrace these advancements, it's essential to stay informed and engaged in the conversation about how AI can continue to transform healthcare for the better. #HealthcareTransformation #GenerativeAI #HealthTech #Innovation #AIinHealthcare Thanks to sources McKinsey & Company (https://lnkd.in/g7HZHEST) and MedCity News (https://lnkd.in/gi95t4qJ)

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While there are many things to consider when it comes to integrating AI into healthcare, an important question to not overlook is: Are patients ready for it? New research from Bain provides some great insight into how patients feel about certain Generative AI applications. From note-taking to medical advice, understanding patients' comfort level will drive this tech's success. Do any of these findings surprise you? #AI #Healthcare #FutureOfHealthcare #PatientExperience

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🏥✨ For many years, technology investments made by health organizations were rarely a driving force behind strategic #transactions. Explore in my latest article with Sam Prescott how #generativeAI has changed the game for Health CIOs. A must-read for leaders at the forefront of change! https://lnkd.in/gRWmi5AH

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Oracle Health, which acquired Cerner two years ago, just announced the launch of a next-generation electronic health record (EHR) platform in 2025, showcasing the company's latest advancements in cloud technology and AI capabilities. I wrote down a few thoughts. 1️⃣ 𝐀𝐟𝐭𝐞𝐫 𝐭𝐰𝐨 𝐲𝐞𝐚𝐫𝐬 𝐢𝐧 𝐬𝐭𝐞𝐚𝐥𝐭𝐡 𝐦𝐨𝐝𝐞, 𝐭𝐡𝐞 𝐂𝐞𝐫𝐧𝐞𝐫 𝐚𝐜𝐪𝐮𝐢𝐬𝐢𝐭𝐢𝐨𝐧 𝐢𝐬 𝐟𝐢𝐧𝐚𝐥𝐥𝐲 𝐠𝐚𝐢𝐧𝐢𝐧𝐠 𝐟𝐮𝐥𝐥 𝐦𝐨𝐦𝐞𝐧𝐭𝐮𝐦. After the big acquisition, nothing seemed to be happening. I even started thinking it was a $28B flop and that Oracle was simply moving on. Oracle stressed that the new platform is not a "refurbished Cerner EHR," but a reinvention of a digital medical record system: "You can’t bolt new innovation onto something built in the 1990s". 2️⃣ 𝐒𝐚𝐦𝐞 𝐬𝐚𝐦𝐞 𝐛𝐮𝐭 𝐝𝐢𝐟𝐟𝐞𝐫𝐞𝐧𝐭 Even though the Tech is new, the philosophy remains the same. EHR incumbents will try to increase their (already too high) power in the hospital Tech stack. The solution won't come from incumbents. 3️⃣ 𝐌𝐨𝐫𝐞 𝐜𝐨𝐦𝐩𝐞𝐭𝐢𝐭𝐢𝐨𝐧 𝐟𝐨𝐫 𝐄𝐩𝐢𝐜 𝐢𝐬 𝐚𝐥𝐰𝐚𝐲𝐬 𝐠𝐨𝐨𝐝 𝐚𝐧𝐝 𝐎𝐫𝐚𝐜𝐥𝐞 𝐬𝐞𝐞𝐦𝐬 𝐭𝐨 𝐡𝐚𝐯𝐞 𝐠𝐨𝐨𝐝 𝐢𝐧𝐭𝐞𝐧𝐭𝐢𝐨𝐧𝐬 In May, an Oracle executive, Ken Glueck, executive vice president, wrote in a blog post that "Epic’s CEO Judy Faulkner is the single biggest obstacle to EHR interoperability." More pressure on Epic to open its system will always be a good thing. 4️⃣ 𝐖𝐞 𝐚𝐫𝐞 𝐞𝐧𝐭𝐞𝐫𝐢𝐧𝐠 𝐭𝐡𝐞 𝐩𝐨𝐬𝐭-𝐄𝐇𝐑 𝐞𝐫𝐚 As Tomaz Gornik, co-chair of OpenEHR (non-profit community interest organisation that aims to enable clinical healthcare to advance by better use of information and IT): "Today's solutions tightly couple data to applications. As health and care data is for life, it needs to outlive applications, so there is a clear need to separate them." The Catalonia region in Spain is a frontrunner and is setting new standards with its digital health strategy and new information system model based on openEHR. 5️⃣ 𝐇𝐨𝐬𝐩𝐢𝐭𝐚𝐥𝐬 𝐡𝐚𝐯𝐞 𝐚 𝐨𝐧𝐞-𝐨𝐟𝐟 𝐨𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐲 𝐭𝐨 𝐫𝐞𝐠𝐚𝐢𝐧 𝐜𝐨𝐧𝐭𝐫𝐨𝐥 Hospital executives need to understand the new tech dynamics and create an operating model that lets them stay in control, leverage the best technology, and keep it manageable to maintain (yes, not an easy task). In Germany, some innovative hospitals are making steps into the right direction: ➡️ A big private hospital chain is building its own EHR ➡️ Another hospital chain aims to use the patient portal as the backbone for designing digitally-enabled care journeys (on top of the EHR) ➡️ A public hospital chain is building a vendor neutral interoperability layer #hospital #ehr #epic #healthcare #healthtech

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The healthcare landscape is rapidly evolving, driven by advancements in technology and a deeper understanding of patient care. I had the pleasure of speaking with Ambar Bhattacharyya, Co-Managing Partner at Maverick Ventures, on the latest episode of The Full Ratchet. Ambar has partnered with numerous billion-dollar companies like hims & hers, Cityblock Health, Devoted Health, and ConcertAI. His unique journey from rural America to becoming a prominent figure in venture capital offers invaluable insights into the future of healthcare and technology. We discuss his investment strategy at Maverick Ventures, the megatrends shaping healthcare, the impact of AI on the industry, and the importance of integrated care. Ambar also shares his thoughts on the challenges and opportunities in healthcare investment, offering a comprehensive view of what lies ahead. Check out TFR Episode 438 to catch our conversation. You'll be glad you listened. Link to the full episode is in the comment section below.

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Abby Levy talks about venture's role in US healthcare and what we can expect to see as technology impacts the space on TFR. Check out the rest of the conversation with Abby & Alan Patricof of Primetime Partners on Episode 433.

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“AI will usher in far greater transparency across the healthcare value chain” As we enter 2025, Mark Sullivan at Fast Company asked me to answer the question, "In what ways will AI have changed life by next year?" The healthcare industry immediately sprung to mind. At Northzone, we believe that AI's impact within the healthcare industry is only beginning to be realized. While broader LLMs and horizontal AI have led the way until now, vertical AI agents capable of actually executing workflows will be transformative to key industries like health. We’re already seeing the massive success of products that can transcribe and summarize patient-doctor conversations, but what if health system AI agents could also follow up with a pharmacist, bill an insurance provider, or automatically order new medical supplies? Those will be the companies we’ll be talking about in a decade’s time. You can read my full thoughts via this link:

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🚀 Exciting news for the healthcare industry! 🩺 McKinsey's latest report on "Generative AI in Healthcare" reveals a promising future 🔮 with 75% of healthcare executives planning to adopt AI in the next 3 years! 📈 💡 Here's what you need to know: 1. 🌱 Growth: The global market for AI in healthcare is projected to reach $6.6 billion by 2021, growing at a CAGR of 47.2% from 2016 to 2021. 📈 2. 💡 Innovation: Generative AI can revolutionize healthcare by creating new drugs, personalizing treatment plans, and improving diagnostics. 🧪 3. 🤝 Collaboration: Successful AI implementation requires partnerships between healthcare providers, tech companies, and regulators. 🤝 💬 "AI has the potential to transform healthcare by improving patient outcomes, reducing costs, and increasing access to care." - McKinsey & Company 💬 🔒 Security: Ensuring data privacy and security is crucial for AI adoption in healthcare. 🔒 🌟 Next Steps: To unlock the full potential of AI, healthcare organizations must focus on building a robust data infrastructure, fostering a culture of innovation, and addressing ethical concerns. 🌟 🤝 Let's work together to harness the power of AI and create a healthier future for all! 🤝 #AIinHealthcare #GenerativeAI #HealthcareInnovation 🩺🚀

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