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Thyme Care’s latest round, Medicare’s new coverage proposal, & AI for candy

July 16, 2024
Reporter, STAT Health Tech Writer

Good morning! Some interesting developments this week on food and its impact on health. My colleague Nick Florko, STAT's commercial determinants of health reporter, has been on a tear reporting on processed foods, including Washington's potential plan to regulate them. Later this issue, I have some news on an AI company's attempts to predict humans' responses to certain foods. As always, reach me with news tips and thoughts at mohana.ravindranath@statnews.com

Exclusive 

Thyme Care raises $95 million Series C round

A cancer care navigation startup founded by former Flatiron Health executives has raised $95 million from investors including Concord Health PartnersTown Hall Ventures, Andreessen Horowitz, Foresite Capital and CVS Health VenturesThyme Care told me exclusively. This is just a year after its $60 million Series B, bringing its total funds raised to $178 million.

Thyme Care offers navigation services to support patients' cancer treatment, including helping them find oncologists and offering access to its own clinical staff for any questions in-between appointments. 

Focused on turning cancer treatment into value-based care, the company is also  trotting out some interesting payment models that investors and experts tell STAT aren't common in oncology yet: Among them is paying oncology practices when they hit certain quality benchmarks, incentivizing them to make cost-effective decisions such as prescribing less expensive but equally safe and effective medications. Thyme Care also contracts with health plans and provider groups that have a financial incentive to improve patients' health; in those contract arrangements, the company charges an up-front fee for its services, but has pledged to refund it if it doesn't save customers money, executives told me. And if it does save them money, it splits the savings with customers. Read more from me here, including insights from an investor and a competitor. 


insurance

Medicare proposes to cover some digital therapies

My colleague Mario Aguilar has done the hard work of decoding the Centers for Medicare and Medicaid Services' 2025 Medicare Physician Fee Schedule Proposed Rule's implications for health tech — and overall, it seems like good news for startups struggling to get paid for digital services like cognitive behavioral therapy.

The new proposed codes would let clinicians bill Medicare for their work through behavioral health apps and digital treatments, though they're limited to medical devices cleared by the Food and Drug Administration and instances in which clinicians took on the cost. "That code being created, I cannot emphasize how awesome that is," Andy Molnar, CEO of the Digital Therapeutics Alliance, told Mario. "This is CMS recognizing that digital therapeutics have a way to get reimbursed if a physician procures the product." Read more from Mario. 


from the bay

Candy-maker Mars, January AI partner on digital twins 

Menlo Park-based blood sugar monitoring company January AI is partnering with Mars, the company best known for pet foods and candy brands like Skittles and M&Ms, on so-called "digital twin" tech to predict consumers' response to certain foods, the companies announced today. Mars' research division, the Mars Advanced Research Institute, plans to use those predictions to inform future product development, and is the first step in exploring AI's role in its R&D overall, vice president of research and science discovery Darren Logan said in a release. 


Washington

ONC: There's more to do on electronic prescribing

In its latest data retrospective, the Office of the National Coordinator for Health IT (the federal government's top IT office) examines the state of electronic prescribing. And while the majority of prescribers now have electronic prescription functions embedded in their electronic health records — only 7% of prescribers were sending e-prescriptions as of 2008 — there's still room to make the service easier for patients including by communicating real-time costs, regulators write. "The goal is for e-prescribing to be more than a tool for sharing prescription info and one that can aid the coordinated care needed for comprehensive medication management and error prevention," they write. 



Wearables

The latest on Apple's patent spat with Alivecor 

Wearable heart monitor company Alivecor faces yet another setback in its ongoing dispute with the Apple Watch maker; the federal government has determined that the Apple watch's ECG function doesn't violate Alivecor's patents, Apple Insider reports. If you need a refresher on the companies' legal battles, check out Mario's rundown from a couple years ago


cybersecurity 

Lurie Children's slapped with class action suits

Chicago children's hospital Lurie is still dealing with the fallout of a widespread cyberattack in January that forced it to take down its network for weeks: now, it faces several potential class action law suits alleging that it didn't promptly notify patients that their information had been exposed and that it failed to protect their data in the first place, HealthcareDive reports.

As we reported during the outage, Lurie's attack came as the health sector faces rising threats from malicious hackers eager to exploit sensitive health information typically in exchange for ransom; another attack on Change Healthcare just weeks later brought health care payment processing to a halt across the country.


Virtual care

Think tank asks Congress for longterm telehealth plan 

The Bipartisan Policy Center is urging Congress to establish a sustainable, long-term strategy for virtual care instead of haphazardly extending temporary policies — and it's also calling for strict oversight of the technology to guard against fraud, waste and abuse, the think tank wrote in a recent policy brief. Among a laundry list of more specific policy proposals, the group also called on CMS to require providers offering audio-only visits to attest that they offered patients the option of a video visit but that the "patient was either unable or unwilling to complete a video visit" — an attempt to shore up potential quality gaps between appointments conducted over the phone and video calls. Not surprisingly, the report cites Ateev Mehrotra, the telehealth researcher I profiled last month who has warned lawmakers to be judicious as they consider expanding virtual care coverage. 


Also on telehealth, Teladoc is now offering pediatric, adolescent and family mental health care through a partnership with Brightline, the companies announced today. 


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What we're reading

  • Challenges and opportunities for regulating clinical artificial intelligence, NEJM AI
  • More on the Change Healthcare hack fallout, Axios
  • What to know about Trump VP pick J.D. Vance's health care views and investments, 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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