Tony Burke

This 👂 podcast episode and insight’s from a16z Bio + Health's Julie Yoo spoke so clearly to the fundamental challenge facing both 🩺 clinicians and 🏥 healthcare systems.  There is a huge disconnect between supply, in the availability of clinicians, and demand, in the increasing volume and complexity of healthcare needs. -     36% of physicians plan to reduce their hours next year according to the AMA -     48% of physicians reported feeling burned out in a 2024 Medscape survey At the same time, the demographic baby boomer bubble and steady increase in the prevalence of major chronic disease, which consumes up to 90% of healthcare expenditures according to some estimates, is driving demand. With this context, Yoo points to a major opportunity for AI adoption in healthcare in 2025. Yeah, a VC hyping a wave of new AI companies that will replace the decades of training and experience of clinicians, the skeptic would say.  But Yoo is thoughtful in pointing to the role AI can play, and is already playing, through solutions such as ambient, autonomous scribe solutions (of which local star Abridge is leading the pack) in not replacing, but freeing up productivity for clinicians. There is so much unstructured context in both the complexity of disease and treatment options and the social/emotional considerations that we shouldn't be looking for AI to *replace* clinicians. But companies are getting better at finding the structured, repetitive and time-consuming places where AI tools can *help* clinicians. Nearly two-thirds of doctors cited bureaucratic tasks as the leading contributor to burnout. Rigorously trained-AI driven solutions can be a force multiplier for clinicians, and I’ve seen several interviews where nurses and doctors go as far as to say some of these solutions are ”restoring their joy in practicing medicine”. Our health is precious; and we rightly want any technology engaging with it to be developed thoughtfully and thoroughly tested. This requires top AI talent and diverse and realistic training data. Pittsburgh’s strengths in both areas is why we are an emerging hub for data-driven healthcare. #AIinhealthcare #clinicianburnout #healthinnovation #digitalhealth

15

Q2 2024 saw a resurgence in home-based care M&A, driven by strategic acquisitions and a cautious yet optimistic private equity landscape. Based on the Q2 2024 Home-Based Care M&A Report from Mertz Taggart, here are the top three trends that I see: 1. Increased Deal Activity: After a slow first quarter, M&A activity picked up significantly, particularly in home health and hospice sectors. 2. Private Equity Influence: Private equity’s role in M&A was smaller than usual due to tightened credit markets, but optimism is rising for more deals in the latter half of 2024. 3. Strategic Acquisitions: Companies like Addus and Amedisys made strategic moves to expand their market share, signaling continued consolidation in the industry. As deal activity heats up, how will these trends shape the future of home care? You can read the full report here - https://hubs.ly/Q02KY4r90 #HomeCare #MergersAndAcquisitions #HealthcareTrends

12

1 Comment

A whirlwind of activity last week at the America's Physician Groups conference. Lots of solid insights shared by health system leaders. Some notable thoughts: +++ Artificial intelligence is intelligent in different ways: By now, we all know ai has a diverse set of use cases, incorporated in different applications and tools. But there are fundamental differences in how the intelligence itself is brought to life. Examples include: - Predictive AI, used to forecast future outcomes by leveraging historical data. Shout out to UCLA’s CKD/ESRD early intervention protocol (Joycee Berin) and Diagnostic Robotics’ intelligence care post-dicharge journeys (Kira Radinsky) - Protocolized AI, used to automating a user’s administrative load by using a set of detailed, pre-defined rule sets. Thanks to ARC for sharing their experience using Elaborate 's automated outpatient lab summaries (Manish Naik) - Generative AI, used to create new content. Great overview of ambient documentation at MGB as well as Cedars’ Sinai talking through its medical ontology model powering acute triage (Caroline Goldzweig) Across system leaders and experts, there was clear agreement that the first step to implementing intelligence intelligently is defining the ‘jobs to be done’. That way, internal and external stakeholders are clear on what they're solving for when they architect the solution.  +++ Scaling AI takes time and rigorous observation: Market leaders describe a phased pilot approach that allows clinicians to build confidence and system leaders to measure ROI before deploying systemwide. Loved hearing Rebecca Mishuris outline MGB’s novel approach of piloting two solutions against one another, to pressure test implementation, workflow, and value creation. +++ Proving ROI continues to be challenging: Lots of vendors using lots of different metrics to prove value, but the majority of leaders agreed that estimating the ROI of these new tools today is part science, part art. Demonstrating the ROI of the “soft” metrics around provider burnout and retention seemed to be a big opportunity, especially for investment in more efficient primary care and PCP wellbeing. After all, PCPs drive referrals to specialty-level care (and higher reimbursements) for health systems. Appreciated Anurang Revri's overview of how working team setup can also impact ROI estimates. +++ Value-based care = tools + humanity: VBC will require not only implementing tools to support clinical documentation, risk capture, upcoding, etc, but also humanizing interactions to engage patients. Countless examples, but one that made me smile was a depression focused chat bot responding in the following interaction: - Context: post-discharge check in Bot: Hi Freida, how are you feeling today after your surgery?  Patient: I’m having a tough time, am in a lot of pain.  Bot: Well, it can’t be that bad, I’m sure it will get better with a positive mindset!    🤣 🤣 🤣 Can't wait for next go-around!

23

2 Comments

Join me on a panel along with healthcare leaders at the #ATANexus Conference in Phoenix, May 7th! AI, Administrative Burden, and Consumer Demands in the Patient Journey. Use ATA24SPKNET for an exclusive offer!

9

🌟 Exciting Insights from the Q1 2024 Home-Based Care M&A Report 🌟 The home-based care sector continues to evolve rapidly, and the latest M&A report for Q1 2024 is out, shedding light on the trends and figures that are shaping the industry. 🔍 Key Takeaways: - A notable increase in transaction volumes, indicating robust industry growth and investor confidence. - Strategic shifts as companies adapt to changing healthcare demands and demographic shifts. - Emerging opportunities for businesses looking to innovate and expand their services. 📈 This report is a must-read for industry professionals, investors, and anyone interested in the future of healthcare. Understanding these trends will help us better prepare and adapt to the ongoing changes in the market. 👉 Check out the full report here for detailed insights and analysis: https://hubs.li/Q02wZ-FS0 Let's discuss! What are your thoughts on these trends? How do you see them impacting the industry in the long run? #HomeCare #HealthcareIndustry #MergersAndAcquisitions #BusinessGrowth #MarketTrends

10

Let's keep hospice focused first and foremost on the PATIENT. After all, we only get one chance to do it right... "There are six primary trends that are influencing consolidation and professional practices: regulatory complexity. technology and integration, private equity ownership. demographics, economies of scale and consumer expectations,” Henderson said. “So many of these things that we see that are influencing health care consolidation need to be pointing toward the patient." #patientsfirst #hospicecare #youonlygetoneshot https://lnkd.in/gbbgV-YF

17

1 Comment

For all the talk about value-based care, progress still is very slow. Advisory Board data shows the small amount of progress made from 2017 to 2022, which varies drastically by line of business. Medicare Advantage is the primary segment driving VBC, mainly due to aligned incentives where plans and providers could get paid more through upcoding (or "appropriate coding") of patients to drive more revenue & margin through the entire system. That drove penetration of VBC in MA, and CMS has paid attention, releasing significant headwinds (v28, RADV, Stars) aimed at reducing these perceived overpayments. In other segments, VBC has been very slow to grow. Commercial VBC arrangements were essentially stagnant. Anecdotally, this is starting to change. Plan sponsors (employers) -- especially large, sophisticated ones -- are demanding more from their carriers. They want to see network arrangements that impact quality & cost. Will that be enough to drive VBC activity in the commercial space? We'll see. Employers -- the customers -- will be the ones who will drive VBC forward here. TPAs alone don't have the incentive to make changes. I remain hopeful, but skeptical. #valuebasedcare #healthtech #digitalhealth

34

👍 In the first half of 2024, U.S. digital health startups secured $5.7 billion across 266 deals, showing a strong rebound after years of slowed investment, according to Rock Health. With early-stage deals driving the momentum, the sector is on track to surpass funding totals from 2019 and 2023. https://bit.ly/4cCRy2W Via Healthcare Dive #digitalhealth #digitalhealthfunding

10

1 Comment

🤔 How do (US) hospitals spend money 101? Salaries, Wages, Benefits: 45-55% Professional Services: 12-22% Supplies: 12-18% Depreciation/Amortization: 3-6% Other Expenses: 5-20% 8 key insights: n°1. Hospitals consume 31% of US healthcare spending: Despite being the largest spending category, many hospitals struggle with low operating margins, often below 2%. n°2. Labor costs dominate hospital expenses: Salaries, wages, and benefits account for 45-55% of a hospital’s expenditures, with front-line staff making up 75-82% of the workforce. n°3. Contract labor adds significant costs: Hospitals often resort to staffing agencies due to labor shortages, paying 2-3 times more for contract workers compared to employed staff. n°4. Supplies account for 12-18% of expenses: This includes medical equipment, drugs, and personal protective equipment. n°5. For-profit vs. non-profit hospitals: For-profit hospitals tend to manage costs more efficiently, keeping salaries and expenses lower, but often at the expense of services like Medicaid or charity care. n°6. Economies of scale in larger health systems: Larger systems benefit from negotiating better prices for supplies and services. n°7. Rural hospitals face unique challenges: Limited access to talent and capital means rural hospitals must rely more heavily on expensive outsourced labor and struggle to offer high-margin services. n°8. Staffing shortages remain a key issue: Despite financial recovery post-COVID for many hospitals, staffing shortages continue, driving hospitals to explore different revenue models and operational changes to sustain profitability.​ Great post by the Out-Of-Pocket team Nikhil Krishnan & Ben Chao #healthcare

5

Sanjay Juneja, M.D. interviews David Hysong and Katherine Arline from Shepherd, a precision oncology platform. They discuss the limitations of traditional cancer treatment guidelines and the need for a more personalized approach. Shepherd uses multiomic data, including RNA sequencing, to assess a patient's unique tumor characteristics and recommend tailored therapies. They also consider collateral medications and potential side effects. #patientcentric #cancercare #oncology

27

2 Comments

The healthcare industry has made some tremendous philosophical and practical advancements over the last 20 years. Concepts such as the Triple Aim and Value Based Care have opened the mind to possibilities of new models … and new ways of thinking. We are finally embracing that new models drive transformation … and that technologies themselves rarely “disrupt”, but the models they enable often do. However, despite the excellent thinking and significant effort by many providers, payers, policy makers, and even patients … the desired outcomes, cost trajectory, and equity still seem out of reach. The sad fact of the matter is that there is no easy action … no one solution. A ‘Big Bang’ solution is not likely to emerge. However, the right catalyzing small changes can begin to underpin the emergence of better micro-models, which, in turn, can give way to sweeping success. It’s likely “micro-model execution” that will advance if not fully transform health and health care for all. The following series of articles I post are not meant to proclaim some masterful answer or solution. After all, as Obi wan Kenobi says, “Only Sith Lords deal in absolutes.” To the contrary they are meant to serve as food for thought … perspectives and insights to stimulate new or different thinking than can perhaps spark meaningfully new micromodels … our at least conversations. If you know of anyone interested in new healthcare takes, please encourage them to follow me here.

36

5 Comments

I always read Rock Health's digital health reports as they give a nice pulse feel for what is happening in the digital health funding space. Good to see funds raised in H1 2024 suggest funding in the sector seems to have stabilized at 2023 levels. Its no surprise the report emphasis the buzz around AI and healthcare. There have been clear winners in the AI healthcare space in the area of process and cost optimization and the R&D space. The impact of AI in care and treatment delivery is so far much more muted. One area I never though to look at AI was in its ability to bring together multiple healthcare pathways and digital point solutions into a more holistic seamless experience for the patient. There is a clear trend away from using stand alone digital health point solutions, and could AI address this challenge by facilitating the efficient integration of disparate processes and technology into unified care programs. I can see this happening with digital health products but this will be more tricky to do with physical care programs involving clinicians and HCPs. “AI is helping us combine multiple parts of the care journey, across all care experiences. In the future, benefits navigation, clinical guidance, and care delivery won’t be delivered by separate companies or point solutions within the healthcare ecosystem. They’ll be features that work in concert within products, and they’ll happen in under 90 seconds for a seamless patient experience.” – Glen Tullman, CEO, Transcarent and Managing Partner, 7wireVentures

11

As 2024 concludes, healthcare leaders have gained critical insights amidst rapid advancements and challenges. Here's a glimpse of the year's key lessons: 🔍 Data as a Strategic Ally: Harnessing real-time analytics transforms operations and patient care. 💻 Telehealth’s New Era: Virtual care isn't just an option—it's expected. 🩺 Workforce Resilience: Supporting staff well-being is pivotal for quality care. 💡 Personalized Patient-Centered Care: Building trust through tailored approaches ensures loyalty and satisfaction. 📜 Adapting to Regulations: Proactive compliance safeguards growth and quality. 🚀 Tech Integration: Innovations like AI show promise but demand careful execution. 💰 Value-Based Care's Rise: Aligning rewards with patient outcomes reshapes operations. As we step into 2025, the focus remains on resilience, innovation, and care. These takeaways set the stage for a robust and adaptable future. What 2024 lessons resonate most with your healthcare journey? Let’s connect and discuss! #HealthcareLeadership #InnovationInCare #2024Lessons #FutureOfHealthcare

1

1 Comment

As part of our #M3P solution in JUDI®, the report dashboard gives Medicare Part D #plansponsors insights into payment activity. With all this data at your fingertips, available to slice and dice as you see fit, you can easily visualize and keep track of payment trends. Want to see Ryan Kelly (Chief Technology Officer) run through a live demo of our M3P solution? Check out the replay of our webinar here: https://okt.to/9ZTsSW

3

🚨 Thinking about a capital event for your urgent care platform in 2025? Whether you're eyeing a merger, acquisition, private equity partnership or a capital raise, preparation is everything. Watch for the top 5 things urgent care operators should do to set the stage for success. Ready to take your urgent care to the next level? Prep now, thrive later. Questions? Slide into my DMs, and let's talk strategy! 🚀

15

1 Comment