Nabla raises $70 million as scribe competition heats up

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This morning, I reported that Nabla raised $70 million amid the growing market for artificial intelligence tools to help doctors. The fundraise follows rapid adoption of ambient scribe technologies that turn audio from patient appointments into clinical notes. It's been one of the best funded applications of AI in health care, and like others in the space, Nabla is racing to add coding and other features to its offering to make it more competitive and to help justify spending on the technology to hospital CFOs. In my story, Nabla CEO and cofounder Alex LeBrun tells me about the company's product vision, why he hates the term "AI scribe," and why he's not worried about flush competitors.

big tech

Amazon sheds health execs, reorganizes again

Amazon is reshuffling its health organization, CNBC reported last week. The company put six leaders, most of whom are Amazon or One Medical veterans, in charge of different domains under health services chief Neil Lindsay. New names to get to know include Suzanne Hansen, who will lead One Medical clinical operations, and John Singerling, who will be in charge of strategic initiatives, including relationships with payers and health systems.

Amazon has spent extravagantly on its health care ambitions and the shakeup follows a series of pivots. This time around the changes don't suggest any obvious new directions, but some familiar leaders from the last few years are moving on. Aaron Martin, a VP of health care, announced he's leaving the health services organization in the next few months. Sunita Mishra, chief medical officer of Amazon Health Services left the company in May, right around the time STAT reported she had supported the development and launch of General Medicine, the new virtual health care marketplace startup from PillPack founders TJ Parker and Elliot Cohen.

Other notable Amazon health departures over the last year or so include Nworah Ayogu, who was general manager of Amazon Clinic, Vin Gupta, who was chief medial officer of Amazon Pharmacy, and Trent Green, who was CEO of One Medical.

Isomorphic sets up U.S. shop and hires CMO

STAT's Katie Palmer reports: Isomorphic Labs, which started as a DeepMind spinoff using AI to discover drug targets, is coming full circle as it plans to send its first molecules to the clinic. The company is setting up shop in the U.S. for the first time, establishing an office in Cambridge, MA and hiring Relay Therapeutics' Ben Wolf as chief medical officer to head up clinical development efforts. The new office comes on the heels of a $600 million funding round — the first external raise in the company's history — and two development partnerships with Eli Lilly and Novartis.

remote monitoring

A slide illustrating digital health's 'huge mess'

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I wanted to share this slide because it made me laugh. It was from a webinar, and I imagined that if it had been presented at a conference, it would have provoked a rumble of knowing laughter in the audience. The slide showing a bunch of disjointed programs comes from Nathan Star, an executive working on hospital at home and remote monitoring programs at Intermountain Health.

He said that this was,"the best slide I could come up with to show all the different programs we're developing to take care of patients, both with different monitoring programs, as well as outside the hospital. And as you can see, it's a huge mess. And I think one of the bigger challenges we're facing as a health system, is there are so many cool tools, there are so many programs, there are so many companies who are offering solutions."

Star pointed out that health system's cardiology department is working with one vendor for heart failure (Story Health), and pulmonology department is working with another vendor on COPD (CareCentra). "It adds a lot of confusion and uncertainty of who is doing what, and how are we taking care of these patients," said Star. "And so, one of the big things we've been working on is how do we consolidate this into a pathway that makes sense."

industry news

23andMe's fate, deals, pivots, and more

Anne Wojcicki won back 23andMe after a nonprofit she leads outbid Regeneron Pharmaceutics to buy the company and its trove of consumer genetic data for $305 million. Read more from STAT's Matthew Herper here.
After many years of offering therapy services only through employers who make it available to their workers, Headspace will allow a ll consumers to access the care. Importantly, the service will take insurance, which was the key to virtual mental health company Talkspace becoming a profitable business.
Axios reported that the recent merger between DispatchHealth and Medically Home came at a dramatic drop in valuation for the latter, which has been burning significant cash on is business helping health systems run hospital at home programs.
Commons Clinic raised a $26 million Series B round led by RA Capital. The company operates surgery centers and previously focused on care for spine, orthopedics, and pain management. It will use the funding to launch a diagnostic testing and preventative care offering.

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What we're reading

They asked an A.I. chatbot questions. The answers sent them spiraling, The New York Times
Order the New Mountain special': How one private equity firm is bringing big exits back to healthcare VC, Business Insider
Private equity firm will finance Harvard research lab, in possible template for future, STAT