George Davis

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

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AI and Med Tech in Focus   AI System Developed to Identify Pathology in Tissues Engineers at Washington State University have developed an AI tool that uses images of human and animal tissue to detect abnormalities faster and more accurately than people. The AI algorithm was trained using images from past studies that involved kidney, testes, ovarian, prostate, breast and lymph node abnormalities. The new model detected disease in minutes—current processes take humans several hours and require specialized teams to check each other’s work. It was also found to be more accurate, sometimes detecting instances that humans had missed. The engineers designed the system to handle the processing load of the high-resolution gigapixel images by breaking them down into smaller tiles but still retaining the overall context of the tissue sample—akin to the zoom feature on a microscope or phone camera. Aside from getting diagnostic results more accurately and quickly, the new system also shows promise in epigenetics (the study of molecular processes that change gene behavior without changing underlying DNA). Epigenetic researchers can perform analyses and get results that used to take a year or more in just a couple of weeks. VC Investors are always adjusting their "Play Book" with a variety of options for investing. Mikal Ventures is one of those alternatives, offering curated solutions to real world problems. Reach out if you have questions on how we can be of assistance and bookmark https://mikalventures.com/ for additional insights and information.

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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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Anne Wojcicki, CEO of 23andMe, has announced plans to take the genetic testing company private. This strategic move aims to provide more flexibility in navigating regulatory challenges and to accelerate growth opportunities. The decision follows a trend of health tech companies seeking private ownership to focus on long-term objectives. Wojcicki highlighted the importance of this shift to maintain the company's commitment to innovation and customer-centric services. Taking 23andMe private reflects a bold step towards enhancing its position in the rapidly evolving genomics industry. Read more about this exciting development here: https://lnkd.in/gdrC3a64 #genomics #IPO #privatisation #23andMe

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https://lnkd.in/gB_-yi-f Sharing a few thoughts on our Computational Care thesis, with a particular focus on the importance of clinical validation in building empathetic software solutions in a complicated environment. Based on the quality of conversations with founders and CEOs recently at HLTH and in the wild, now is a great time to build, deploy, and scale great software against hard problems in healthcare. We are seeing real progress, and we want to see even more bravery.

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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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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!

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Some VC investors believe that brick and mortar - referring to a physical presence of some kind - should be avoided at all costs. Yet, the track record of clinic and hybrid care businesses in health care indicates otherwise. ==> One Medical (sold for $3.9 billion to Amazon), Oak Street (bought by CVS for $10.6 billion), Lifestance (IPO at $7.5 billion market cap), and PE-backed Premise Health (acquired by OMERS Private Equity for $1.1 billion) If a clinic is indicated as the optimal way to deliver care for that patient population, there are creative ways to build and operate them. Full article below with advice and strategies on how to build and operate hybrid clinics from my teammate Anarghya Vardhana from Maveron, Amir Dan Rubin from OneMedical Group, Steven Eidelman from Modern Animal and more!

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10 mid-market PE deals from the past week: ➡️ Vector Capital Management has acquired Bigtincan Holdings, which provides sales enablement software and AI solutions. ➡️ Argosy Healthcare Partners sponsored a recap of Nicklas Medical Staffing, a FL-based staffing firm for pathology and histology labs ➡️ Platinum Equity invested in Global the Source, a master distributor of HVAC/R components, with will be merged with existing Platinum portfolio company MARS ➡️ RECOGNIZE invested in SDG Corporation, a CT-based provider of cybersecurity services ➡️ CES Power, a live events infrastructure firm owned by Allied Industrial Partners, acquired Base Craft | Nationwide TV and Film Equipment Leasing, a provider of services and equipment for the motion picture industry ➡️ OpenClinica, a MA-based portfolio company of Thompson Street Capital Partners, acquired BuildClinical, a NY-based provider of patient recruitment software for academic researchers ➡️ Comvest Private Equity bought Bland Landscaping Company, an NC-based provider of commercial landscaping services ➡️ Morgan Stanley Capital Partners agreed to buy Prescott's, a CO-based provider of outsourced clinical engineering services ➡️ Priority Courier Experts Express, a Minneapolis-based portfolio company of TRIDENT acquired Indiana's NOW Courier Inc. ➡️ TTDS Thermal Technology Distribution Solutions, a Cincinnati-based portfolio company of Gryphon Investors, acquired Applied Thermal Systems of Minneapolis ➡️ Echo AI (acquired by Calabrio), which uses generative AI in a customer conversation platform, was acquired by Thoma Bravo-backed customer interaction analytics specialist Calabrio, Inc. ➡️ Amulet Capital Partners, LP acquired Theoria Medical, a managing service org for senior living communities #PrivateEquity #MergersandAcquisitions #Acquisitions #PE #Acquisitions

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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

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Another large funding round in the virtual behavioral health space. It's interesting to note Talkiatry's focus on a physician-centric care model with W-2 providers, as opposed to most of the other players who are delivering care with 1099 mid-level therapists. However, it's still not clear to me how they are measuring care quality and outcomes, which is the foundation of true value-based care.

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Imagine swallowing the competition whole. That's what many players in tech do via roll-up strategies, gobbling up smaller firms to deliver richer solutions and amass greater market share. Where else are roll-up strategies common? // HEALTHCARE Picture being a patient at a medical practice that’s been part of a roll-up in Healthcare Services. It's an industry ripe for roll-ups due to its fragmented nature and potential for greater efficiency. // CONSUMER SERVICES Or let's say you needed your HVAC serviced, and notice your local repairman is now part of a bigger Consumer Services entity? Centralized management and scale economy turn these localized businesses into roll-up targets. // FINANCIAL SERVICES Think about your insurance agent or wealth management advisor. They're working in complex, highly regulated environments. In the Financial Services sector, roll-ups offer an effective way to consolidate expertise, streamline operations, and enhance customer offerings. // MANUFACTURING Now, imagine driving past factories under a new name — the result of Manufacturing and Industrial Services roll-ups. Bulk purchasing reduces costs, enhances production capabilities, and expands geographical footprints. // REAL ESTATE Lastly, envision your real estate brokerage firm. The industry sees roll-ups as a strategic move to increase market penetration, enhance service offerings, and hike up portfolio value. Roll-ups play a huge role in most industries, rather like a snowball rolling downhill, gaining momentum, and size. Are you seeing roll-ups in your sector or considering M&A?

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Despite the "less conclusive quality and cost findings" shown by Hospital-at-home AHCAH programs for Medicare, participants in the program (both patients and clinicians) give it a thumbs-up. Big proponent of moving appropriate acute/post-acute care into the homes, however, a lot of these programs were not well executed and many were not appropriately resourced. It's not surprising that the overall data on quality and cost is underwhelming. Hopefully, the 2 yr extension (currently legislation due) should allow for this picture to become clearer. #HaH #AHCAH #Hospitalathome #Homehealth

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Healthcare is highly suited for AI automation, with many opportunities to improve accessibility, affordability, and outcomes. AI can drive efficiencies across various functions, though it will inevitably reduce the need for some human roles. #higherorder #ai #automation #healthcare #healthtech

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TLDR - if you’re a early-stage investor, builder or health care provider that believes the below facts... we at Conduit Venture Labs have a stealth venture in the oven w/ Krisna Bhargava, PhD (let's connect). 🦠 Environmental factors are responsible for ~90% of chronic disease. https://lnkd.in/gSJPGXVs 🥺 Primary care does not have the time nor education to screen environmental exposure. https://lnkd.in/gJ5GtHMV 🚀 Functional/integrative care is growing at ~23% CAGR but is unaffordable to most people. https://lnkd.in/gWwuChYk

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"The U.S. continues to be in a class by itself in the underperformance of its health care sector." Mirror, Mirror 2024 is the Commonwealth Fund’s eighth report comparing the performance of health systems in selected countries. They examine five key domains of health system performance: access to care, care process, administrative efficiency, equity, and health outcomes. Health equity is a massive opportunity. Top-down approaches like new CMS reimbursement codes are providing excellent incentives. Bottoms-up approaches include startups designing specific health outcome improvements for target populations. Investors: If you're not investing in improving healthcare, you're overlooking a market that represents 20% of the US GDP! Founders: Are you working on an innovation in health equity we should know about? Comment below! https://lnkd.in/gjKhZsAc

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Boston is home to some of the world’s most groundbreaking health institutions and research hubs, driving innovation in medicine and healthcare for decades. Each of these organizations plays a crucial role in advancing health tech and shaping the future of medical science: Harvard Medical School – Leading the way in health sciences, Harvard Medical School is training the next generation of medical innovators through cutting-edge research. Massachusetts General Hospital (MGH) – Known for pioneering research and impactful clinical trials across various health tech areas, MGH continues to set standards in medical excellence. Brigham and Women's Hospital Women’s Hospital – Focused on translational medicine, BWH deeply engages in clinical research that bridges lab discoveries to patient care. Broad Institute of MIT and Harvard – This powerhouse in genomics and bioinformatics is advancing personalized medicine by conducting large-scale research in genetics and disease. Dana-Farber Cancer Institute – A global leader in cancer research, Dana-Farber is at the forefront of developing innovative oncology treatments that save lives. Boston Children's Hospital – Known for groundbreaking advancements in pediatric care, Boston Children's Hospital is a beacon of hope for young patients and their families. These institutions form the backbone of Boston's vibrant health tech ecosystem, collectively making strides toward a healthier, more innovative future. 🌐✨ #BostonHealthTech #InnovationEcosystem #MedicalResearch #PersonalizedMedicine #HealthcareInnovation #Innolytics

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