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Verily’s sewage dreams, searching for profits at JPM, and UnitedHealth’s secret denial pipeline

January 4, 2024
Reporter, STAT Health Tech Writer

Good morning and a very happy new year! I'm filling in for Mario today and gearing up for next week's JPMorgan Health Care conference. Also, applications are open for STAT's 12-month disability in health care reporting fellowship, so please apply and share. On to the news! 

ICYMI

From the health tech desk: What we're tracking in 2024

My team has churned out a dizzying number of stories since our last edition, spanning from urgent investigations to keen year-end analyses and looks ahead. Here's just a few you may have missed: 


special investigation

UnitedHealth's secret rules for restricting care

UnitedHealth_illo_v3

Yet another revelation following Bob Herman's and Casey Ross's previous blockbuster investigation into the health plan's reliance on algorithms, which  sparked a class action lawsuit: UnitedHealth used secret rules to limit rehab care requested by certain groups of seriously ill patients, such as those living in nursing homes, internal documents showed. Those records show that many patients in Medicare Advantage plans were shunted into a quick denial pipeline based on factors neither they nor their doctors knew about. 


Lizzy's device digest

What's Apple's future in health?

As the important ban iPhone maker's Apple Watches takes effect following the  International Trade Commission's conclusion that its blood oxygen measurement was too close to competitor Masimo's, the company faces crucial questions — including whether to pay Masimo to use its technology, Lizzy Lawrence writes. Apple has temporarily paused sales of the devices to comply with the ban, but it could also tweak its technology to mollify the ITC or slash it altogether. Since then, a federal judge allowed Apple to continue selling the devices while the court reviews ITC's import ban. Read Lizzy's analysis of the company's options


the business of health tech

Trends to watch in 2024

We're far afield from health tech's funding frenzy back in 2021, and some of the industry's erstwhile darlings are stumbling in a much tougher funding environment. Jon Swope, of Barclays, told Mario Aguilar that it's not all bad news, and that funding evaporating doesn't reflect the value of digital health. "Tech innovation in health care is not going away,"  he said. "This cycle just had an abrupt end." Among trends Mario expects to see, especially for publicly traded companies: A renewed focus on efficiency to appease antsy investors. Read more


AI, efficiency will drive providers' tech spend

Providers spanning from community clinics to large multi-state hospital systems are bracing for an icy 2024, though it'll likely present slightly wider margins than 2023, analysts and executives tell me. They'll likely funnel those extra funds into additional tech spending, especially tools that will help them and a continually strained workforce do more with less. 

"The percentage of the budget [going to tech] is absolutely going up," Fitch analyst Kevin Halloran said.  "If I'm an organization and I've got the extra cash, I'm upping my spending in IT, and not only is there a classic 'I need an EMR or an EHR put in,'…but also exploring these new technologies in the AI space," he said. Read more about where providers expect to spend this year


Workforce

Health tech hiring tips back in favor of employers

As with funding, gone are the days of abundant digital health jobs, and the scales have tipped back in favor of the companies who have managed to withstand 2023's market turbulence. Compared to previous years, companies selling apps, telehealth, and other health tech tools and services face far less competition for open positions, Fay Rotenberg, CEO of Firefly Health, told me in December. "It's a lot easier to hire great people this year than it was last year," she said. "Now we post a job, and within two to three days there's 600-plus really great applicants," she said. Read more on hiring trends


cyber Security

Screen Shot 2023-12-21 at 3.15.53 PM

2023 was a banner year for data breaches, Katie Palmer writes: As many as 116 million people were impacted by large data breaches reported last year to the federal government's Office for Civil Rights, which enforces HIPAA. That's largely because of a spike in hacking and ransomware attacks on providers. Read more on the threat landscape here



from the bay

On deck: JP Morgan's Health Care conference

I'll have an ear to the ground at the annual assembly of the health care industry's most powerful leaders in San Francisco next week. While the conference is dominated by pharma giants, a smattering of digital health companies and health systems are also on the docket. Among my burning questions: How close are companies like Oscar, Teladoc and Talkspace to turning meaningful profits? (Many of them have targeted 2024.) How seriously are health systems investing in generative AI? And how will the burgeoning market for weight loss drugs shape what health tech companies offer this year? If you have thoughts, and if you'll be in the area, drop me a line: mohana.ravindranath@statnews.com. And read more on what my colleagues are tracking here


More on Verily's wastewater contracts

Alphabet life sciences company Verily recently took over a CDC sewage surveillance contract (reportedly disputed by its predecessor Biobot) to build out the nascent service it says didn't exist before the pandemic. As it vies for more opportunities to track viruses in wastewater, it's considering expanding internationally — and a recent trial tracking dengue in the U.S. could help it do just that, executives tell me.  Principal scientist Bradley White told me Verily began searching for signs of dengue in wastewater this summer, and that the company's assays were useful in tracking the spread of the virus.

Considering that Verily's CDC contract is its only federal wastewater deal — and that one's focused largely on Covid-19 — the research suggests there might be more business opportunities globally. For dengue, he said, "there's an opportunity...less in the U.S., but it's maybe growing." Stay tuned for more on Verily's wastewater monitoring business and its attempts to turn it into a viable business line. 


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What we're reading

  • Northeastern doctors use an algorithm to predict life and death, Boston Globe
  • Inside the race for brain implants, Wired
  • 2024 could be a turning point for AI regulation, STAT 

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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