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The GenAI Divide, OpenAI’s New App, and Define Ventures House of Healthcare
August 28, 2025
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Together with
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“It’s so different from SaaS. What got you here, won’t get you there.”
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Canvas Medical CEO Adam Farren on generative AI.
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Medallion had a front row view of the wasteful spending in the credentialing trenches, and it just raised $43M to help eliminate it by launching CredAlliance, the first national credentialing clearinghouse. In the latest Digital Health Wire Show, Medallion CEO Derek Lo takes us through the ways that CredAlliance is poised to shake up the industry, and why healthcare back offices are finally ready to have their moment with intelligent automation.
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It only takes one look at the key findings from MIT’s GenAI Divide report to see why it made such a big splash this week: 95% of GenAI deployments fail.
MIT knows how to grab headlines. The paper – based on interviews with 150 enterprise execs, a survey of 350 employees, and an analysis of 300 GenAI deployments – highlights a clear chasm between the successful projects and the painful lessons.
- After $30B+ of GenAI spend across all industries, only 5% of organizations have seen a measurable impact to their top lines. Adoption is high, but transformation is rare.
- While general-purpose models like ChatGPT have improved individual productivity, that hasn’t translated to enterprise outcomes. Most “enterprise-grade” systems are stalling in pilots, and only a small fraction actually make it to production.
Why are GenAI pilots failing? The report suggests that it’s not the quality of the models, but the learning gap for both the tools and the organizations that’s causing pilots to fail.
- Most enterprise tools don’t remember, don’t adapt, and don’t fit into real workflows. This creates “an AI shadow economy” where 90% of employees regularly use general models, yet reject enterprise tools that can’t carry context across sessions.
- Employees ranked output quality and UX issues among the biggest barriers, which both directly trace back to missing memory and workflow integration.
What’s driving successful deployments? There was a consistent pattern among organizations successfully crossing the GenAI Divide: top buyers treated AI startups less like software vendors and more like business service providers. These orgs:
- Demanded deep customization aligned to internal processes and data
- Benchmarked tools on operational outcomes, not model benchmarks
- Partnered through early-stage failures, treating deployment as co-evolution
- Sourced AI initiatives from frontline managers, not central labs
There’s always a catch. Most of the pushback on the report was due to its definition of “failure,” which was not having a measurable P&L impact within six months. That definition would make “failures” out of everything from the internet to cloud computing, and underscores why enterprise transformation is measured in years, not months.
The Takeaway
The GenAI growing pains might be worse than expected, but that’s helped startups realize that they need to ditch the SaaS playbook for a new set of rules. In the GenAI era, deployment is a starting line, not a finish line.
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Next Generation Ambient Tech and Agents
The ambient AI transformation is already sweeping across health systems, reducing administrative burdens and improving patient outcomes. So, what’s next? Tune into this on-demand session to learn how systems like Carle Health and Denver Health are leveraging Nabla to eliminate Pajama Time and build a future where agentic AI unlocks true workforce sustainability.
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Navina Ranks #1 Best in KLAS for Clinician Digital Workflow
KLAS ranked Navina’s AI copilot #1 for Clinician Digital Workflow in its 2025 Best in KLAS report. Navina’s AI copilot empowers the entire workflow from the exam room to the back office with a holistic solution for improving outcomes, physician satisfaction, and performance under value-based care. Discover why Navina is the market-leading clinical intelligence platform.
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- OpenAI Building New Health App: OpenAI is apparently building its own health app outside of ChatGPT. CEO Sam Altman has been rounding up execs from Doximity and the health tech VC world to lead the effort, and Business Insider reports that OpenAI is keeping its options open as far as potential use cases. Sources close to the matter revealed that the new app could include both consumer-facing tools and enterprise solutions for patient triage, clinical documentation, and engagement. LLMs are definitely starting to make industry lines pretty blurry.
- Define Venture’s AI House of Healthcare: Define Ventures put out an excellent thesis on how they’re approaching investments in healthcare AI. The category is experiencing the holy trinity of technological breakthroughs, market readiness, and systemic tailwinds, which helped Define draft the blueprint for its “AI House of Healthcare.” The VC firm is focusing on startups that can help build the house’s foundation (data liquidity and insight extraction), rooms (workflow automation where care is delivered), and front door (automatic personalization when people first entire the system).
- Wellth Series C: Wellth closed $36M of Series C funding to expand access to its adherence and behavior-change services to more Medicaid, MA, and dual-eligible beneficiaries. The Wellth app helps high-risk populations develop lasting habits through daily motivation, and its members have completed over 50M daily check-ins so far. That’s reportedly resulted in some solid metrics, including a 90% average care plan adherence, a 51% reduction in inpatient admissions, and a 16% improvement in medication adherence.
- FDA Digital Health Accelerator: The FDA rolled out a new Digital Health Regulatory Accelerator to make it easier for companies to get to market faster. The program includes: (1) a “Resource Index for Innovators” that curates FDA tools and guidance documents; (2) hour-long sessions with FDA reviewers that let developers demonstrate their product and ask questions; (3) a “Medical Device Software Guidance Navigator” that highlights key considerations and helps identify relevant policies across the product development cycle.
- Gaps in Payor Data Strategies: Arcadia’s Scaling Smarter report uncovered several gaps in payor data strategies, particularly when it comes to unlocking value from AI. Survey results showed that 66% of payors rate their ability to share data externally as “very good” or “excellent,” yet only 57% said the same about integrating data from external sources. A vast majority (85%) also haven’t integrated their data into a centralized analytics platform, and as a result less than 20% of plans have been able to use AI to support care strategies, summarize records, or drive engagement.
- mPulse Acquires Clarity: mPulse bolstered its Health Experience and Insights (HXI) platform with the acquisition of Clarity Software Solutions, a health communications company that creates “member-journey touchpoints through personalized, intelligent cross-channel engagement.” Clarity is mPulse’s sixth acquisition in under five years, and seems like it will be right at home in an HXI ecosystem aimed at combining engagement tech with predictive analytics to establish a 360 view of the member journey.
- FDA Approves First OTC Glucose App: Signos received FDA clearance for its AI-powered glucose monitoring app designed specifically for weight loss, marking the first-ever clearance for an over-the-counter solution of its kind. The app leverages Dexcom’s off-the-shelf continuous glucose monitors to equip users with real-time data and personalized lifestyle recommendations for healthy weight management. Signos currently offers both three-month ($139/mo) or six-month memberships ($129/mo), and ships all of the CGMs directly to patient homes.
- Artera Agent Momentum: Artera’s Flows Agents have continued picking up steam, and are now supporting over 1,000 distinct flows across 135+ healthcare organizations. The Flows Agents enable providers to automate routine communications, create custom engagements, and loop humans in when needed. The secret sauce behind the adoption has apparently been Artera’s Template Library, which includes 70+ pre-built templates leveraging the most effective workflow examples across its user base that can be duplicated and customized for other customers.
- NC State Health Plan + Hello Heart: The North Carolina State Health Plan is teaming up with Hello Heart to help over 55k plan members in rural communities control heart disease risk factors. The benefit provides Hello Heart’s connected blood pressure monitors, tracking apps, and personalized health insights for hypertension, high cholesterol, and other cardiovascular risks. The partnership hopes to reduce healthcare costs while improving access to heart health management for members who struggle to reach traditional care facilities.
- Fewer Qualified Doctors for Hire: A recent Medscape poll shows that physicians are citing a lack of qualified applicants as the main reason why they can’t fill open positions. Out of the 1,001 physicians surveyed, 63% reported that there was a lack of qualified doctors available in their local job market, and 30% said application quality for open positions has been steadily declining. The forecast isn’t looking too rosy either: nearly 6 in 10 respondents were either “very unconfident” or “unconfident” that progress could be made on the clinical labor shortage over the next decade.
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AI Science Breakthrough: Hallucination-Free Clinical Documentation
Abridge has invented a novel system to classify, identify, and eliminate hallucinations from medical documentation before they reach clinicians for final review. This technology performs 6x better than standard AI models at finding and fixing hallucinations. Abridge delivers the best-in-class ambient AI for healthcare by investing in foundational AI science and research. Read this game-changing interactive whitepaper to learn more.
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Are You Invisible on AI Search?
Your next patient is asking ChatGPT. But unless your healthcare company has content that answers their questions, you won’t show up. Tely AI fixes this by analyzing your niche, identifying what patients and partners look for, and publishing expert-level content to make you visible on Google AI, ChatGPT, and Perplexity. Launch your AI agent in 5 minutes and get your first article on us.
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- Discover Sleep Rx, the Clinically Validated Sleep Tracking Mat: Sleep Rx offers a non-invasive, contactless, at-home solution to aid in the diagnosis of sleep apnea, addressing a critical health issue affecting millions. Available by prescription, this innovative sleep tracking mat is set to transform remote patient monitoring by providing detailed sleep analysis without the need for cumbersome equipment. Learn how Sleep Rx enhances diagnosis rates and ultimately improves long-term health outcomes.
- Elevate 2025 – Medallion’s Virtual Conference Returns Sept 17: Now in its fourth year, Medallion’s annual conference is back – bringing together healthcare leaders to explore this year’s theme: Elevate the present. Reframe the future of healthcare. Hear from industry voices like Tom Lawry, author of Hacking Healthcare, UPMC Chief Medical Information Officer Robert Bart, and many more. Reserve your spot now.
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