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Investors eye security and privacy tech, Hippocratic A raises $53 million, & the latest breakthrough devices

March 19, 2024
Reporter, STAT Health Tech Writer

Good morning! In recent weeks I've learned of a troubling proliferation of AI-generated content in peer-reviewed journals. What's the most blatant example you've seen in the wild? Send those, and news tips, to mohana.ravindranath@statnews.com.

Venture capital

Startup investors eye security, privacy technology

Hospital corporate investment arms and Silicon Valley venture firms alike are nosing around for companies focused on privacy and security that could eventually support the other health-related AI startups they're already backing, experts told me last week. As my colleagues and I have reported, health systems have been rushing to deploy products like ambient documentation tools even before they've had a chance to establish benchmarks for quality, and cybersecurity risks, exacerbated by new technology, have soared.

Instead of waiting for federal and state regulators to catch up, investors tell me they're trying to get ahead of potential pitfalls by building out AI infrastructure — a step that could not only safeguards today's products, but could also help cement privacy and safety standards in an emerging industry that doesn't quite have them yet. "While the establishment of comprehensive regulations is still underway, it provides a unique opportunity for us to lead by example," said Jeffrey Jones, senior vice president of product development at UPMC Enterprises. Read more here. 


General Catalyst, a16z health AI venture raises $53M

Health AI startup Hippocratic AI — backed and launched by both General Catalyst and its rival venture fund Andreessen Horowitz —has raised a $53 million series A round co-led by Premji Invest and General Catalyst, the company announced at the NVIDIA conference Monday. The latest round brings the LLM company's total funding to $120 million. 

Hippocratic, which partners with several health system co-developers, also pushed out its first product for safety testing: a marketplace for generative AI tools that can do non-diagnostic patient-facing tasks.

Also at the NVIDIA conference, ambient documentation startup Abridge announced an investment from the computing giant's investment arm, NVentures. Abridge also plans to use NVidia computing resources and models to drive its own generative AI technology, the companies said this morning


Survey: Consumers won't share data with just anyone

An annual consumer poll from venture seed fund Rock Health finds that the majority of those surveyed in 2023 — 90 percent — were willing to share health data with at least one outside entity, spanning from clinicians to insurance companies to health tech companies. But, interestingly, the proportion of people willing to share their data with each entity type has dropped in recent years — 70 percent of respondents were willing to share their data with clinicians in 2022, compared with 64 percent in 2023, for instance. And there were significant variations in willingness to share data by age, race and ethnicity. "[C]onsumers' growing reluctance to share their healthcare data is an opportunity and a warning for the sector," report authors wrote. "There's an unmistakable need to address concerns and invest in trust-building around data sharing and stewardship." 

White respondents had the highest proportion willing to share data with clinicians; Hawaiian Native and Pacific Islanders had the lowest. Medical racism and historical discrimination, of course, contribute to these gaps — but I welcome any theories underlying consumers' growing reluctance to share health data with clinicians. 


Academia

Study: Direct-to-consumer telehealth linked to higher rates of antibiotic receipt in pediatric patients

With mountains of usage data amassed since the pandemic's early stages, experts are beginning to chip away at some of telehealth's foundational questions — including whether the modality alone changes the care patients get. Staunch telehealth advocates have argued vociferously that it doesn't, but a new study in JAMA Network Open paints a different picture, albeit only in one specific context: pediatric patients receiving antibiotics.  

In an analysis of about 28,000 pediatric patients with acute respiratory tract infections, researchers found that virtual visits associated with primary care providers were less likely than those with direct-to-consumer telehealth companies to result in antibiotics prescriptions, a diagnosis warranting antibiotics, or a follow-up visit or fulfilled prescription within two weeks. About 29 percent of primary care provider telehealth visits resulted in antibiotics, compared to about 37 percent for direct to consumer companies, the study found. 

The data offers a small window into potential differences, but questions remain: It's still not clear whether any differences are due to the "modality of care (telemedicine vs in-person) [or] the context of telemedicine care (primary care vs not primary care)," authors wrote. Supporting telehealth visits through primary care providers could be one way to reduce the receipt of antibiotics, they noted in the study.  



Lizzy's device digest

The latest on FDA's Breakthrough Devices Program

At least 40 medical device companies have earned the FDA's coveted "breakthrough" designation over the past six months, my colleague Lizzy Lawrence tells us. While that program's purportedly designed to accelerate patients' access to novel and potentially life-saving products, the clearest winners have been device companies, who stand to gain investor interest and an easier path to Medicare coverage. Lizzy updated STAT's Breakthrough Devices tracker with the latest designations. Among her findings: 
  • Quite a few AI diagnostics companies announced breakthrough status, including a cancer detection startup called Paige and a Yale-spinout looking at heart disease detection called Ensight-AI.
  • The number of breakthrough-designated companies tackling bone infections and malformations struck Lizzy as well. Swedish company BoneSupport with an antibiotic-eluting synthetic bone implant, Korean company CGBIO with a bone putty helping with regeneration, British company Renovos Biologics with a similar bone graft product.

You can check out these updates and more here.


EPA limits carcinogenic gas for sterilizing devices

Late last week the Environmental Protection Agency finalized limits on the use of ethylene oxide, a gas used to sterilize most medical devices, Lizzy writes. EPA had proposed those limits about a year ago. The final rule mandates that commercial sterilization facilities monitor and document their reduced emissions.

"We need to ensure that our medical supply chain is safe and that people in the medical system receive a high quality of care," Darya Minovi, a senior analyst at the Union of Concerned Scientists, told Lizzy earlier this year. "However, we can't in the process of doing so sacrifice the health of the people who live near the facilities." Read more


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What we're reading

  • Telehealth site boosts "male menopause" drugs despite FDA ban, CBS News
  • Why positive childhood experiences could improve health, STAT
  • Inside Epic's bet on generative AI, Forbes

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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