Healthcare AI Guy Weekly Newsletter | 2/28

Want to get your product in front of healthcare AI enthusiasts? Reach out!

Our Picks ✨

Highlights if you’ve only got 2 minutes…

1/

Abridge, AI medical scribe, raises $150M

Abridge, the AI medical scribe/clinical documentation startup, just announced another $150M raise for its Series C, just 4 months after its $30M Series B, and is one of the largest funding rounds made to date in generative AI for healthcare. This is the definition of going hard to the hoop.

The fresh funds will be used to scale Abridge’s team and accelerate R&D. The announcement included a new partnership with Yale New Haven Health System, giving thousands of clinicians in Connecticut access to Abridge. In addition, Abridge also re-branded and came out with a new logo, which you can see below and on their website. (link)

2/ 

Pricing models for AI in healthcare

We came across an interesting piece that digs into usage-based payment models for healthcare AI — covering linear/usage-based, volumetric, bundled services, managed services, and device-maintenance pricing models. We’ll briefly review the 5 usage-based payment models below:

• Linear/usage-based pricing: involves paying a flat rate per unit of value and is popular among API-first companies. It can be funded through balance sheet capital or health plan reimbursement via CPT codes.

• Volumetric pricing: allows customers to purchase an allowance based on expected usage and may incur additional fees for exceeding the allowance. Many API-first companies have pioneered volumetric models as improvements to usage-based as it incentivizes greater utilization.

• Bundled usage pricing: offers tiered pricing with additional features at higher prices.

• Managed services pricing: involves paying recurring fees for continuous outsourced services and can be powered by autonomous AI agents.

• Device-maintenance pricing: an initial upfront fee plus a recurring leasing fee for acquiring the AI product, accompanied by annual maintenance fees ensuring continuous functionality, performance, and support.

When it comes to AI in healthcare there are many ways one can price their products, so it’s good to get an understanding of various approaches. We will cover performance-based pricing models soon in another issue. (link)

3/

Healthcare execs ready for more AI

AI bullishness in healthcare continues to rise, with Accenture’s Technology Vision 2024 report and a Health Pulse Survey from EY proving increasing interest and belief. Here are some interesting stats from each report:

Accenture (link)

• 90% of healthcare executives believe that AI advances are just getting started and that they’ll improve their organizations.

• 69% of consumers want healthcare organizations to develop stricter standards for AI ethics and privacy.

• Conversely, 31% of consumers are confident in existing AI standards.

Ernst & Young (link)

• Nearly all healthcare executives believe new digital health technologies are worth the cost, even though they have yet to see a financial return from it.

• 60% of executives report active investment in AI-based applications.

• 90% of executives say implementing digital health technologies has had a positive effect on operational efficiency, shifting administrative responsibilities from providers.

Tool Box 🧰

Latest on business, consumer, and clinical healthcare AI tools and partnerships…

LATEST TOOLS

• Gradient Health debuts ‘Atlas’ data suite: AI data sharing company Gradient Health launched Atlas, a new suite of products giving AI developers easier access to clinical data for algorithm training. They are offering Atlas in three versions — Atlas, Atlas+, and Atlas Concierge. (link)

• Apple eyes hydration tracking: Apple is eyeing hydration tracking with a new patent, as they were just awarded a broad patent for a “wearable device with perspiration measuring capabilities” — greenlighting noninvasive hydration tracking for Apple Watch. (link)

PARTNERSHIPS

• Care.ai + Virtua: Ambient monitoring platform care.ai announced an enterprise-wide partnership with New Jersey-based academic system Virtua Health. The news follows a successful virtual nursing pilot that went live in December and Virtua then deployed care.ai’s Smart Care Facility Platform and ambient sensors throughout all of its acute care settings. (link)

• Sentara Health + RythmX: Sentara Health partnered with genAI company RhythmX AI to build a hyper-personalized primary care experience for patients and clinicians. Sentara will use RhthmX AI’s predictive generative AI platform to provide relevant clinical and payer guideline information, early disease detection, underlying EHR data analysis, and documentation support to clinicians. (link)

Deal Desk 💸 

Spotlight on latest capital raises, M&A, and investments…

FRESH FUNDING

• Abridge, an AI scribe company, raised $150M in Series C funding. Lightspeed Venture Partners and Redpoint Ventures co-led and were joined by other new and existing investors. (link)

• MMI, an Italian microsurgery robotics startup, raised $110M in Series C funding led by Fidelity, with others also participating. (link)

• Fabric, a New York-based healthcare management software developer, raised $60M in Series A funding led by General Catalyst, Thrive Capital, GV, Salesforce Ventures, Vast Ventures, Box Group, and Atento Capital also participating. (link)

• Bioptimus, a French biotech AI startup, raised $35M in seed funding led by Sofinnova Partners, with Bpifrance, Frst, Cathay Innovation, Headline, Hummingbird, NJF Capital, Owkin, and Top Harvest Capital also participating. (link)

• AZMed, a French medtech AI startup, raised €15M in Series A funding from Maison Worms, Techstars, Tempact Ventures and others. (link)

• Baseimmune, a British startup that uses AI to develop vaccines for future pathogen mutations, raised $14M million in Series A funding co-led by MSD Global Health Innovation Fund and IQ Capital. (link)

• Siftwell Analytics, a company providing AI-based insights to community health plans to help improve member outcomes, secured $5.8M in the company’s first VC round. Arkin Digital Health, AlleyCorp, Tau Ventures and The Charlotte Fund all invested. (link)

• Avatar Medical, a medical imaging startup, raised $5.4M in funding led by GO Capital, with Acorn Pacific Ventures, Plug and Play, Rives Croissance, and Cenitz also participating. (link)

• WIVI Vision, a Spanish healthtech startup, raised a $4.3M Series A. The round was led by Adara Ventures, and was joined by Hearstlab, Avançsa, Caixabank DayOne, BBVA Spark, Banco Santander, and others. (link)

Other Relevant News 🔍

News, podcasts, blogs, tweets, resources, etc…

• Survey: physicians optimistic AI could help ease burnout, other issues (link)

• Opinion: Sanofi CEO optimistic about prospects for AI (link)

• Executives offer guidance to help hospitals avoid failure when adopting new tech (link)

• The science behind AI in healthcare (video)

• Power up operational efficiency by automating your clinical activities (video)

• Lessons from a $4B company bringing AI to healthcare & path to AI doctors (video)

Visuals of the Week 📸

Funny memes, cool pics, and interesting data from around the web…