Welcome to DIGITAL HEALTH BRIEFING, the newsletter providing the latest news, data, and insight on how digital technology is disrupting the healthcare ecosystem, produced by Business Insider Intelligence.
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BAIDU APPLIES MACHINE LEARNING ALGORITHM TO CANCER DETECTION: Chinese tech giant Baidu has open-sourced a machine learning algorithm that more accurately detects tumors in pathology slides, the company announced Monday. Baidu's algorithm automates a process that requires radiologists to meticulously analyze medical images - this could serve as a valuable clinical decision support tool by reducing diagnostic errors, expediting the tumor detection process, and freeing up hospital staff to focus on care.
With AI on the verge of breaking into healthcare - 85% of US health executives believe AI will have a central role in healthcare within the next three years - medical imaging will likely be one of the first services disrupted. And Baidu's not the only tech giant looking to leverage its machine learning expertise to break into the lucrative healthcare market. Google researchers have been exploring how deep learning can process chest x-rays to identify diseases, for example.
In a recent interview with Business Insider Intelligence, Yi Li, lead author of Baidu's study, identified three trends to watch as AI arrives in healthcare:
- Tech giants' data analytics expertise will play an important role in applying AI to healthcare. Alibaba, Alphabet, Amazon, and Baidu could all bring their experience applying AI and cloud-computing to consumer data for a growing role in healthcare.
- Machine learning could turn smartphones into powerful diagnostic tools. Machine learning processes that are baked into smartphones are becoming increasingly sophisticated - Li pointed to a recent Stanford study that demonstrated how machine learning-equipped smartphones can identify skin cancer from images of skin lesions with clinical accuracy.
- The adoption of AI in healthcare may be hindered by regulation. The sensitive regulation of medical records means patient data isn't easily accessible, which could create barriers to AI adoption.
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LYFT EXPANDS PROGRAM OFFERING FREE TRANSPORTATION TO CANCER CARE: Lyft is expanding its Road to Recovery program - launched in conjunction with the American Cancer Society - which offers cancer patients free rides to and from treatment, per Fortune. The program is already available in Miami and Las Vegas, and will now expand to 10 major US cities, including Atlanta, Philadelphia, and Los Angeles. Road to Recovery makes use of Lyft's Concierge app, which allows providers to request non-emergency medical transportation (NEMT) for their patients.
NEMT can help providers and payers put a dent in the $150 billion in annual healthcare costs that arise from missed appointments. Nearly 4 million Americans miss out on care annually due to transportation barriers, and national appointment no-show rates are as high as 30%, according to SCI Solutions. This accounts for a big chunk of foregone revenue for providers, as each unused time slot costs physicians $200. And payers bear the costs as well - patients who miss out on preventative care might be more likely to end up in the ER, forcing insurers to pay out more in the long run.
Uber and Lyft have both been expanding their healthcare efforts. In May 2017, Lyft partnered with Blue Cross Blue Shield Association to offer members in isolated areas free access to care, according to Fortune. In March 2018, Uber unveiled Uber Health, a platform that enables providers to coordinate transportation for their patients. And Circulation, an NEMT digital platform, teamed up with diagnostic AI chatbot Buoy Health in May 2018 to help deliver users to care. These players likely hope that filling an unmet need for NEMT will make them attractive partners to providers and insurers.
ASCENSION BETS ON AUTOMATION AMID RESTRUCTURING: US health system Ascension Health is turning to automation as it works to find its footing in a landscape colored by thinning profit margins, according to Healthcare Dive. Ascension's new enterprise venture, dubbed Agilify, aims to help healthcare businesses automate repetitive, labor-intensive tasks. While it's unclear which healthcare functions Agilify will target, there's no shortage of opportunities - Business Insider Intelligence estimates that up to 73% of healthcare admin tasks could be automated by AI, such as appointment scheduling and insurance checking. Automation has already helped one Ascension subsidiary achieve a 10% year-over-year (YoY) cost reduction for more than five years.
US hospitals are feeling the squeeze of rising costs, dwindling reimbursements from the government and payers, and a muddled regulatory environment - hospital operating cash flow margin, a signal of financial strength, hit a ten-year low in 2017, according to the Wall Street Journal. Health systems like Ascension are adjusting by emphasizing digital solutions like automation and virtual care, which can reduce admin expenses, streamline operations and expand the number of access points it has to its customers. Ascension sold one of its hospitals and announced a greater focus on telemedicine in April 2018 after annual operating income fell 27% YoY in 2017.
HEALTH SYSTEM IMPROVES WORKFLOW WITH MEDICATION MANAGEMENT SYSTEM: Massachusetts-based health system Valley Medical Group instituted an automated medication management system that reduced the number of prescription refill requests submitted to physicians or clinical staff by 80%, according to Healthcare IT News. Physicians spend up to 30 minutes per day on prescription refill requests - to address this time spend, Valley Medical integrated healthfinch, Inc's medication management system into its existing electronic health record (EHR) platform and automated prescription refill protocols. The result was an expedited refill process, reduced physician workload, and more efficient usage of resources - a single clerical staff member can now handle 60% of requests.
EHRs are a sore spot for providers - more than 70% of primary care physicians cite EHRs as greatly contributing to burnout, according to a Stanford Medicine survey. Automating processes like prescription requests can reduce physicians' time spent filling out EHRs, which could help to mitigate burnout and free up time for patient-facing roles or more complex activities. Health systems will face a growing urgency to invest in tech that streamlines workflow - the US physician shortage is set to swell to 120,000 physicians by 2030, further straining doctors and likely exacerbating burnout. As AI is capable of automating 78% of healthcare admin - which accounts for 30% of health costs - there will likely be an influx of AI-enabled systems that target admin tasks in the future.
IN OTHER NEWS:
- Omada Health, a San Francisco-based digital therapeutics startup, is adding new programs to its platform to help customers manage type 2 diabetes and hypertension, according to Healthcare Dive. Omada launched the largest-ever randomized control trial of diabetes prevention with a virtual program in January 2018.
- The FDA announced updates to its pre-certification model for software, encouraging smaller health tech companies to apply and loosening the eligibility guidelines for companies applying to the faster Level 2 pathway, according to Healthcare Analytics News. Originally launched in 2017, the program aims to accelerate the introduction and marketing of innovative products and give the FDA oversight of software solutions that historically sit outside of its authority.
- Purdue University researchers developed a sensor-embedded contact lens that can monitor glucose levels, according to MobiHealthNews. The researchers envision the lens helping diabetes patients better manage their conditions.
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