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What Biden’s AI plan means for health

October 31, 2023
Reporter, STAT Health Tech Writer

Good morning and a Happy Halloween to those who celebrate. We've got a ton of stories from our health tech desk on AI regulations, devices and Big Box retailers' virtual care strategies. News, thoughts and your most terrifying health tech costumes go to mohana.ravindranath@statnews.com. 

From Washington

Info blocking ban could get teeth soon

The federal government's health IT office proposed new rules on Monday to penalize providers caught violating the government's information blocking regulations — a long awaited step that could give the years-long ban on interfering with data sharing regulatory teeth, Casey Ross writes. 

Under the Office of the National Coordinator for Health IT's proposal, hospitals and other providers would lose government payments meant to support the use of record keeping software. And if they're part of an accountable care organization, providers could also be banned from getting payments under Medicare's shared savings program. 

The new proposals are meant to put the finishing touches on ONC's effort to crack down on the hoarding of highly-valuable health data. Patients want easy electronic access to the data to get the most effective care, and health IT developers need to tap the information to build more useful artificial intelligence tools to warn of emerging health problems.


What the AI executive order means for health tech 

The tech and policy worlds are buzzing about President Biden's wide ranging artificial intelligence executive order, though it's too early to tell whether it'll actually offer robust guardrails against pitfalls like bias and discrimination. 

Unveiled Monday, the White House executive order also directed the federal government's health departments to come up with a plan for regulating AI commonly found in hospitals, within health plan administration, and other health businesses, Casey writes. More specifically, The Health and Human Services Department must create a safety program collecting reports of unsafe and harmful AI-related practices. 

Casey has reported widely on ways AI currently makes consequential decisions about patients' care, including algorithms denying Medicare patients payment for serious illnesses, among others. Read more from Casey on the executive order and what it means

Want more AI news? Check out STAT's Generative AI Tracker, a handy tool that you can use to  to keep an eye on the real-world cases of generative AI being used by health systems.


Telehealth

Retailers flood the virtual care market 

A flurry of retailers have launched virtual care businesses that let patients seek treatment for conditions like hair loss and ear infections by paying cash — not insurance — and texting or video-chatting with providers, Katie Palmer writes. The growth of cash-pay businesses could give patients more choice, but could also fuel confusion. 

Costco, for instance, is partnering with Sesame to offer virtual visits for as low as $29 to members, and Walgreens plans to launch its own direct-to-consumer cash pay business in 9 states in the coming weeks, among others. 

Many of these companies are primarily interested in "Can we offer the kinds of services that are cheap enough to provide that we don't have to worry about going to insurers?" Alexander Lennox-Miller, lead analyst in healthcare IT at CB Insights, told Katie. By tapping into a population of patients who just routinely need efficient access to medication, which providers can offer virtually, they don't have to pay to build physical clinics, Lennox-Miller said. Read more from Katie here. 


A mixed bag on telehealth and quality data

A new study out in JAMA Health Forum suggests — in one limited setting — what some virtual care advocates have feared: That telemedicine for some serious mental illness patients during the pandemic led to more visits, but not necessarily better care. In this analysis of about 120,000 patients with schizophrenia or bipolar disorder, the ones at practices that went entirely virtual had 13% more visits than the patients at clinics that still relied on in-person care, but demonstrated no changes in other quality metrics like medication adherence or emergency department use. The study highlights yet another fact in the debate about whether virtual care actually improves patients' health, and whether it can ratchet up costs by driving up the number of appointments, but researchers are far from coming to any definitive conclusions. 



Devices

Report: Unnecessary coronary stents cost millions of Medicare dollars 

More than a fifth of coronary stents placed in U.S. hospitals between 2019 and 2021 were placed unnecessarily, costing $2.44 billion, according to a report from think tank the Lown Institute. Citing research suggesting that the devices don't benefit stable heart disease patients more than medication therapy — though they can be lifesaving for cardiac arrest — the think tank concluded that hundreds of thousands of stents at more than 1700 hospitals across the country were unnecessary. 


ITC recommends partial import ban on Apple Watches

A patent battle between patient monitoring company Masimo and consumer tech giant Apple progressed late last week when the U.S. International Trade Commission issued a partial import ban on Apple Watches, declaring that the company infringed on Masimo's patents. President Biden will review that decision over the next two months and could decide to veto it, though such presidential vetoes are uncommon, Lizzy Lawrence writes

"Today's ruling by the USITC sends a powerful message that even the world's largest company is not above the law," Masimo head Joe Kiani said in a statement. "This important determination is a strong validation of our efforts to hold Apple accountable for unlawfully misappropriating our patented technology." 

An Apple spokesperson stated that the company will appeal the decision and charged Masimo with keeping the Apple Watch out of reach for people who may need it. 


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What we're reading

  • 23andMe to give GSK access to its genetic testing data, Bloomberg 
  • Amazon is considering expanding into veterinary telehealth, CNBC

Thanks for reading! More on Thursday - Mohana

Mohana Ravindranath is a Bay Area correspondent covering health tech at STAT and has made it her mission to separate out hype from reality in health care.


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