Stanford Health Care CDO Dr. Michael Pfeffer

Artificial Intelligence

Patients Ready For GenAI, But Not For Everything

Bain & Company’s US Frontline of Consumer Healthcare Survey turned up the surprising result that patients are more comfortable with generative AI “analyzing their radiology scan and making a diagnosis than answering the phone at their doctor’s office.”

That’s quite the headline, but the authors were quick to point out that it’s probably less of a measure of confidence in GenAI’s medical expertise than a sign that patients aren’t yet comfortable interacting with the technology directly.

Here’s the breakdown of patient comfort with different GenAI use cases:

While it does appear that patients are more prepared to have GenAI supporting their doctor than engaging with it themselves, it’s just as notable that less than half reported feeling comfortable with even a single GenAI application in healthcare.

• No “comfortable” response was above 37%, and after adding in the “neutral” votes, there was still only one application that broke 50%: note taking during appointments.

• The fact that only 19% felt comfortable with GenAI answering calls for providers or payors could also just be a sign that patients would far rather talk to a human in either situation, regardless of the tech’s capabilities.

The next chart looks at GenAI perceptions among healthcare workers: 

Physicians and administrators are feeling a similar mix of excitement and apprehension, sharing a generally positive view of GenAI’s potential to alleviate admin burdens and clinician workloads, as well as a concern that it could undermine the patient-provider relationship.

• Worries over new technology threatening the relationship of patients and providers aren’t new, and we just witnessed them play out at an accelerated pace with telehealth.

• Despite initial fears, the value of the relationship prevailed, which Bain backed up with the fact that 61% of patients who use telehealth only do so with their own provider.

Whether you’re measuring by patient or provider comfort, GenAI’s progress will be closely tied to trust in the technology on an application-by-application basis. Trust takes time to build and first impressions are key, so this survey underscores the importance of nailing the user experience early on.

The Takeaway
The story of generative AI in healthcare is just getting started, and as we saw with telehealth, the first few pages could take some serious willpower to get through. New technologies mean new workflows, revenue models, and countless other barriers to overcome, but trust will only keep building every step of the way. Plus, the next chapter looks pretty dang good.

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The Wire

• 2025 CPT Codes: The AMA released its 2025 Current Procedural Terminology code set, which fired up 420 updates to next year’s CPT codes. Remote therapeutic monitoring revisions included Code 98975 getting updated to include digital therapeutic intervention, while codes 98976-98978 were revised to include device supply for data access or data transmissions to support RTM. The other big news was that the AI Taxonomy introduced in 2023 was implemented to classify AI medical services as assistive, augmentative, or autonomous based on the work they perform on behalf of clinicians.

• Hackensack Meridian + K Health: Hackensack Meridian Health announced the upcoming launch of HMH 24/7, an AI-driven primary care solution co-developed alongside K Health to provide a seamless combination of virtual and in-person care. HMH 24/7 gives patients easy access to Hackensack Meridian PCPs right from their phones, with K Health enabling a fully EHR-integrated experience that equips clinicians with a panoramic view of patient medical histories while ensuring unbroken care continuity between virtual and brick-and-mortar visits, lab tests, or more complex treatments.

• Candid Closes $29M: Revenue cycle management startup Candid Health closed $29M in Series B funding to advance its RCM automation platform by weaving in more AI for a better user experience. By streamlining the entire process from submissions to accounts receivable, Candid eliminates manual processes and auto-corrects claims, reportedly allowing the top performers out of the 150 healthcare orgs it works with to achieve over 95% first pass resolutions and net collections.

• HHS Leans in on AI: Politico crunched the numbers on federal AI investment, revealing that the HHS spent nearly $129M on AI over the past five years. Within the HHS, the top agencies for AI investment were the Office of the Assistant Secretary for Management and Budget ($53M), the FDA ($32M), and the NIH ($26M). Although much of that went to research, one of the largest moves was the OASMB investing $39M in Spectral MD optical imaging devices that use AI to classify burns, which is apparently particularly useful in mass-casualty events.

• AirPods Hearing Aid Authorization: Less than a week after Apple added hearing aid capabilities to the latest version of the AirPods Pro, the FDA authorized the feature to amplify sounds for individuals 18 years or older with mild hearing impairment. Apple applied via the de novo pathway and is the first company to receive authorization for over-the-counter hearing aid software, hitting the milestone nearly two years after the FDA began allowing hearing aids to be offered without a prescription.

• Viome Funding Fuels Diagnostic Division: At-home diagnostics startup Viome Life Sciences nabbed $25M through a Series D raise to launch a new diagnostic division while bolstering its existing microbiome and personalized health solutions. Viome’s test kits analyze saliva, blood, and stool samples to inform health recommendations and treatments. Its diagnostics business will now aim beyond oral and throat cancers by developing tests for early detection of various chronic conditions.

• Oura Acquires Veri: Smart ring vendor Oura acquired metabolic health company Veri to support the launch of a new Meals solution that allows users to track how the timing of their meals affects stress, sleep, and recovery metrics. Veri uses Abbott’s FreeStyle Libre continuous glucose monitors to deliver its insights, so this acquisition appears to be a solid indication that Oura is serious about pulling new inputs like CGMs into its consumer health ecosystem. 

• Top Challenges Facing Physicians: Seven in 10 physicians cited rising costs as the primary reason their practice went into the red last year in Medical Economics’ 95th annual Physician Report. The survey of practicing physicians explores everything from salaries and practice finances to malpractice rates and current obstacles. The top three issues ranked by physicians were (1) burden of paperwork and quality metrics – which we discussed last week, (2) inadequate reimbursement, and (3) third-party interference such as prior authorization.

• Innovaccer Care Management Copilot: Innovaccer debuted Care Management Copilot within its all-in-one care management solution, adding clinical documentation to existing automations for patient engagement and clinical workflows. Care Management Copilot is powered by Innovaccer’s healthcare-native Sara AI model to reduce the documentation burden on care managers by automatically populating assessments, care protocols, and care plan suggestions.

• Mother and Baby Heart Funding: Maternal health startup Bloomlife scored $12.2M in Series A funding to expand its commercial reach and support future product development. The raise follows the FDA clearance of Bloomlife’s MFM-Pro device, which remotely monitors maternal and fetal heart rates. 

Navigate the Future of Healthcare AI at Elevate

Join Medallion at Elevate on October 30th and experience the top minds in healthcare coming together to share bold ideas and connect in an informal, down-to-business setting. This was hands-down the best virtual conference we attended last year, and the lineup for 2024 is packed with execs from orgs like from VillageMD, Multiplan, and Community Health Systems. Take advantage of Elevate by registering here.

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The Industry Wire

1. Italian hospitals call in the army to stop attacks on staff.
2. NYT: Chatbots are becoming a go-to source for medical info.
3. Lehigh Valley Health’s $65M patient photo ransomware settlement.
4. Henry Ford Health launches $2.2B expansion.
5. WA Court: Hospitals are responsible for contractors’ errors.
6. BWH nurses land 20-30% raise in new labor agreement.
7. MD Anderson and Rice launch cancer operations partnership.
8. CommonSpirit Colorado opens to KP members, adds KP clinicians.
9. Half of women miss care due to cost, access, and negative experiences.
10. Nearly 1M Medicare beneficiaries could be affected by data breach.