Jared Kling

One key reason why healthcare technologies like AI, telemedicine, and software haven't structurally lowered costs or broadened access for the entire system after decades of experimentation (excluding pure financial engineering of payer contracts) is the limited reimagining of care delivery itself, with asynchronous telemedicine as a notable exception. In the same way that digitizing physical paper failed to exploit the capabilities of a new computing medium for word processing, hosting physician-patient conversations over video does not transform the actual delivery of care. In telemedicine, many of the inputs (e.g., clinician time) and therefore cost structures of in-person care persist, which is why we often see fee-for-service telemedicine companies struggle to achieve economies of scale (i.e., growing revenues non-linearly while growing costs linearly). Until we deconstruct the components of a medical appointment – from intake and triage, to chart review, history gathering, physical examination, diagnosis, treatment, and follow-up – we will continue to be underwhelmed by the disconnect between the transformative potential of these technologies and real-world patient/system impact. I’m optimistic that the emergence of reliable and performant medical AI agents will urge us to perform this deconstruction and redesign the fundamental building blocks of a “medical appointment.”

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Healthcare is highly suited for AI automation, with many opportunities to improve accessibility, affordability, and outcomes. AI can drive efficiencies across various functions, though it will inevitably reduce the need for some human roles. #higherorder #ai #automation #healthcare #healthtech

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I’m worried about the state of venture capital and direct-to-consumer (DTC) healthcare startups. Hims & Hers is the poster child for DTC healthcare at $1.2B proj 2024 revenue and a $3.6B valuation. By most accounts, they have been an outlier success for DTC since bottoming out in May 2022. So why is this bad news for DTC healthcare? Because the market leader (Hims) trades at a 3x forward revenue multiple. And the category leader typically gets a higher valuation multiple than smaller startups. We see this phenomenon in private equity. They “roll up” smaller companies within the same category at a lower multiples just to create one larger platform that trades at higher multiples. Now back to DTC healthcare startups. If Hims commands a 3x revenue multiple, it’s not unrealistic that smaller, unprofitable startups may be valued 1-2x revenue at exit. At 2x revenue, a startup must generate $500M to produce a $1B exit in today’s market (depending on growth and profitability). Series A/B venture capitalists must see a pathway to $1B outcomes. And if the growth-stage investors with billions under management are less interested in DTC healthcare, the future funding rounds necessary for fueling growth are not guaranteed. Juxtapose this against 2017-2022 where DTC could raise Series B-E funding. Let’s take a DTC startup doing $25M after 3-4 years of operations and has already raised a Series A. By most accounts, it would be a phenomenal accomplishment. But today, investors will question the chances of that same company scaling from $25M to $500M revenue in the next 3-4 years with unknown future funding sources from Series B and beyond. You're stuck in VC-funding purgatory. Some of these companies will shut down. Some may sell for 1-3x revenue. And some may try to transition to profitable, cash-flowing businesses. All of which are certainly not the venture-backed goal the founders, investors, and employees often had in mind when first taking capital. I say this all with friends working at or starting DTC healthcare companies, I feel bad for them. I also feel bad for the patients who enjoy those products or services. To caveat (b/c I know people will object), there will be other DTC brands that exit for $1B+ (i.e., Ro). However, they were forged and scaled during a different time period where seemingly endless venture capital was available for DTC healthcare. Now we're in a different time with no end in sight. Thoughts?

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Exciting news from Monica Chopra, Jeffrey De Flavio, MD, Samantha Adelberg, and the rest of the Auxa Health team as they officially announce their $5.2M Seed round. The team's deep industry expertise and drive for change have led them to solve critical infrastructural friction to providing quality healthcare and adoption of value-based care. Auxa's AI benefit navigation platform is simplifying the complexities of healthcare by streamlining all of the fragmented and siloed data and information to make it actionable in real-time for healthcare organizations. For the 70% of Americans who aren't getting access to the health and social care benefits they deserve, Auxa's solution will be pivotal in enabling equitable care. We're thrilled to partner with co-investors Zeal Capital Partners, AlleyCorp, Laconia, and Chaac Ventures on this journey and look to share many more milestones ahead. Cc K50 Ventures, Ryan Bloomer, Daniel Vásquez, Nick Talwar, Stefanie Ng https://lnkd.in/dPDY7-Db

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In our latest publication in Health, Management, Policy, and Innovation – "Why AI Is Good for Our Health but May Hurt Our Wallets," we examine how current regulatory frameworks, reimbursement structures, and business models for AI in healthcare are decoupled, creating an environment in which AI may significantly increase costs without necessarily improving outcomes. We recommend three interconnected reforms to unlock the full potential of healthcare AI: (1) Rigorous pre- and post-deployment evaluation to verify proposed clinical value, (2) Development of assessment standards through shared guidelines, and (3) Strategic alignment of AI deployment modalities with sustainable business models – "modality-business model-market" fit 👉 https://lnkd.in/d8NiczyM Sneha Shah Jain, MD, MBA, Clinical Professor and Kevin Schulman Professor of Medicine at Stanford University, Nigam Shah, Chief Data Scientist, Michael Pfeffer, Chief Information and Digital Officer, and Linda Hoff Chief Financial Officer at Stanford Health Care

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Sometimes, the best way to describe what Caresyntax does is through real results. We don't just talk about optimizing healthcare – we deliver. This case study dives deep into how we partnered with a Southeastern health system to optimize their complex ventral hernia repair program. The results are staggering: - Annual cost reduction of $700,000 - Service line net margin improvement of $15,000 per patient - 54% decrease in post-surgical opioid use (safer, happier patients) - 33% reduction in length of stay (patients recover faster) Here's the secret sauce: We go beyond traditional data analysis. Our unique approach connects all the dots – patient factors, treatment details, costs, and reimbursements. This allows us to identify hidden opportunities for improvement. Read this case study to see how we did it. https://lnkd.in/gtebkRU7 #DataDrivenSurgery

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Imagine swallowing the competition whole. That's what many players in tech do via roll-up strategies, gobbling up smaller firms to deliver richer solutions and amass greater market share. Where else are roll-up strategies common? // HEALTHCARE Picture being a patient at a medical practice that’s been part of a roll-up in Healthcare Services. It's an industry ripe for roll-ups due to its fragmented nature and potential for greater efficiency. // CONSUMER SERVICES Or let's say you needed your HVAC serviced, and notice your local repairman is now part of a bigger Consumer Services entity? Centralized management and scale economy turn these localized businesses into roll-up targets. // FINANCIAL SERVICES Think about your insurance agent or wealth management advisor. They're working in complex, highly regulated environments. In the Financial Services sector, roll-ups offer an effective way to consolidate expertise, streamline operations, and enhance customer offerings. // MANUFACTURING Now, imagine driving past factories under a new name — the result of Manufacturing and Industrial Services roll-ups. Bulk purchasing reduces costs, enhances production capabilities, and expands geographical footprints. // REAL ESTATE Lastly, envision your real estate brokerage firm. The industry sees roll-ups as a strategic move to increase market penetration, enhance service offerings, and hike up portfolio value. Roll-ups play a huge role in most industries, rather like a snowball rolling downhill, gaining momentum, and size. Are you seeing roll-ups in your sector or considering M&A?

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Some VC investors believe that brick and mortar - referring to a physical presence of some kind - should be avoided at all costs. Yet, the track record of clinic and hybrid care businesses in health care indicates otherwise. ==> One Medical (sold for $3.9 billion to Amazon), Oak Street (bought by CVS for $10.6 billion), Lifestance (IPO at $7.5 billion market cap), and PE-backed Premise Health (acquired by OMERS Private Equity for $1.1 billion) If a clinic is indicated as the optimal way to deliver care for that patient population, there are creative ways to build and operate them. Full article below with advice and strategies on how to build and operate hybrid clinics from my teammate Anarghya Vardhana from Maveron, Amir Dan Rubin from OneMedical Group, Steven Eidelman from Modern Animal and more!

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#Niche-focused #ventures in #HealthTech, such as those #targeting #underserved areas or #specific health conditions, offer several benefits. They can address gaps in the #healthcare system, provide specialized care, and #potentially integrate into broader #ecosystems for comprehensive healthcare solutions. For example, #JVEDTECHMedovation, could explore #partnerships with #niche #HealthTech startups to enhance offerings in healthcare #innovation.

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M13 is thrilled to lead the Series A in RadiantGraph which is focused on personalization in healthcare. As we continue to invest in early stage companies it is abundantly clear that the biggest indicator of success is the founder and his or her ability to execute on their vision of the future. In this case, I don't think I have seen much better founder-market fit than we have with founder and CEO Anmol Madan. We believe in his vision: in order to have the best patient outcomes in healthcare we need increased personalization and AI is the breakthrough to get us there. Anmol started one of the pioneering digital health companies Ginger and then was Chief Data Scientist at Livongo and Teledoc. He has done it all: early stage, late stage, public company. And he deeply understands the nuances of the healthcare market from all angles which is critical for success. While there are many players building healthcare-specific AI capabilities, RadiantGraph is focused on outcomes: The platform is already processing personalization models for more than 3.5 million people, despite launching just last year. Excited to partner with my friend Adam D'Augelli and the great True Ventures again and Morgan Blumberg who has been deep in the healthcare market with me for many years. More on our thesis in the blog below. https://lnkd.in/evDDmC3W

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A health system asked if I could share what SeamlessMD’s secret sauce was for engaging patients… so I’ve decided to open source my response here. They wanted to know what principles and success factors have enabled our customer partners to achieve industry-leading results like: ⬇️ Cost of care by $1,000+ per patient ⬆️ Increased net profit of $1,000+ per patient ⬇️ 1 to 2 days length of stay ⬇️ 89% readmissions reduction by up to 89% ⬇️ 68% ED visit reduction by up to 68% ⬇️ 89% mortality ⬇️ 65% phone calls to providers Here are the main principles and success factors I shared: 1️⃣ It starts with a high touch partnership to ensure success. The People + Process we assign to a health system partnership matter even more than the Technology 2️⃣ Clinical expertise applied to the product matters more than Tech features. Our product’s secret sauce is our world class, pre-built care plan content. 3️⃣ Key elements of our care plan content that drive high patient engagement include: - Brand personalization - Condition-specific patient experiences - Personalization to a patient’s demographics & comorbidities - Condition-specific health status & symptom tracking - Automated self-care guidance for 80%+ of patient issues 4️⃣ Obsession with patient accessibility further optimizes patient engagement. - Gr. 6 reading level - Colour-blind tested - Screenreader friendly - WCAG 2.0 Level AA requirements met and more 5️⃣ Digital care plan implementation is Clinical Change Management. A successful implementation requires a proven playbook and hands-on expertise for: - Achieving care pathway standardization and alignment - while being efficient with clinician time commitment - Embedding digital care journeys into the clinical workflow: What workflows make the most sense for receiving alerts and monitoring dashboards given our limited staff resources? - Having the clinical acumen to going deep into the nitty gritty clinical workflows. E.g. for a pregnancy care journey - how will our solution know if there is an infant loss? How should the care plan change in that case? 6️⃣ Clinicians must be engaged to have a sense of ownership so they promote it to patients We’ve figured ou the optimal time commitment that ensures all clinicians are engaged during implementation (hint: physicians have very limited time!) 7️⃣ Let busy clinicians act as the Editors of Clinical Content. By having a clinical Patient Education team act as proactive Ghost Writers. - The key principles are to (1) earn clinician trust and (2) reduce friction to clinician engagement. 8️⃣ The ideal approach to patient enrollment varies from health system to health system. Sometimes a hybrid approach might even be needed 9️⃣ You must believe that the job’s not done until you achieve business outcomes. We obsess over the data and push our partners to measure ROI. More details in the slides below 👇 *** I’m curious: Which of these resonated most?

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"The future of healthcare isn't just about treating diseases—it's about unlocking the full potential of data to predict, prevent, and personalize care for every individual." I was privileged to speak at the Real-World Evidence and Life Sciences Analytics Conference in Boston, Massachusetts. My talk highlighted the recent advancements in Precision Medicine and the future. It was an exciting opportunity to explore how precision medicine, driven by real-world data and advanced analytics, transforms healthcare by enabling more personalized and effective treatments. Thank you to the experts and visionary minds for contributing to this dynamic gathering. Together, we're paving the way for a more proactive and patient-centered approach to medicine. #PrecisionMedicine #AIinHealthcare #RWE #FutureOfHealth #Boston #Massachusetts MarketsandMarkets™ MarketsandMarkets Conferences American Association for Precision Medicine (AAPM) #AAPM_Health #AAPMHealth #RWD #News

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"Innovation in healthcare is not just about the tools we build, but the lives we change." Truly excited to be giving a #TechTalk at the Clinical Data Management and Innovation Conference! It's incredible to witness how recent advancements have transformed the landscape of #ClinicalTrials and #HealthCareResearch. Here are some of the recent trends transforming the industry: 🔹 AI & Machine Learning: These technologies are reshaping clinical data management by automating tasks like data cleaning, identifying patterns in vast datasets, and assisting with participant recruitment through Natural Language Processing (NLP). 🔹 Integrated Data Management Platforms: The move towards centralized systems is streamlining everything from data capture to reporting, enhancing efficiency and data quality across the board. 🔹 Real-World Data (RWD) & Evidence (RWE): Incorporating data from wearables and other digital health tools bridges the gap between controlled trial environments and real-life patient experiences. 🔹 Decentralized Trials & Telemedicine: By enabling remote participation, these models increase patient access and improve retention, especially for underrepresented groups. 🔹 Risk-Based Monitoring (RBM): Strategic monitoring of high-risk data points optimizes trial management, enhancing speed and data accuracy. 🔹 Wearable Tech & Data Security: Wearables are revolutionizing data collection, while an increased emphasis on data privacy protects sensitive clinical information. It's exciting to be at the forefront of such transformative changes, speeding up research and improving patient outcomes. The future of #ClinicalResearch is brighter than ever! 🌟 #Innovation #DataManagement #ArtificialIntelligence #AIinHealthcare #RWE #RWD #Realworddata #realworkevidence #PrecisionMedicine #HealthTech #DataScience #ClinicalTrials #Innovation #PatientCentricity #AI #DataStewardship #Leadership #Biopharma Agility Pharmaceuticals Arena International Events Group American Association for Precision Medicine (AAPM) #aapmhealth #aapm_health WISE World Investors & Entrepreneurs Society #drugdiscovery #drugdevelopment #clinicaldata #ai #news

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💥 New Episode: Second Opinion with Caroline Pearson, Executive Director of Peterson Health Technology Institute (PHTI)! Remember that bombshell PHTI report showing many digital diabetes companies aren't producing meaningful improvements in patient outcomes—and are even driving up healthcare costs?? We had a candid chat with Caroline about how the industry can do better. Some takeaways: 📊 Prove Your Worth: "Digital" isn't a value proposition—it's table stakes. Whether you're driving clinical outcomes or providing patient support, back your claims with evidence and be crystal clear about what you're actually delivering. 🏥 Healthcare is Unaffordable: Caroline talks about the tough trade-offs we make every day due to finite resources. If we’re going to spend healthcare dollars, let’s make sure it’s on something that delivers real value. 🤝 Collaboration is Key: Caroline emphasizes the need for companies to work together—don’t compete when it comes to building evidence. Let’s all push towards better solutions for patients! Check out the full episode here and let us know what you think: ᯤ https://lnkd.in/gUmfWSPq  https://lnkd.in/g7FdqZhs ⏵ https://lnkd.in/gnGH7dpt Turpentine Christina Farr Luba Greenwood, J.D.

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There’s a category we believe is getting too little attention when it comes to AI in healthcare: AI Clinical Documentation Integrity (CDI) While AI ambient scribes and autonomous medical coding solutions have gotten most of the headlines, we’d argue AI CDI is equally impactful when it comes to quality care and accurate billing. For those not familiar, CDI ensures that clinical documentation accurately reflects the patient’s medical condition and the provided care. Historically, CDI was a manual slog, with dedicated CDI specialists, nurses, and physicians painstakingly reviewing patient charts to ensure documentation supported the care delivered. Today, AI is reshaping this landscape. While it’s still early days, we’re seeing three primary approaches to applying AI when it comes to CDI: 1️⃣ CDI + ambient scribing—an AI ambient scribe and AI CDI assistant operate simultaneously, generating comprehensive notes and surfacing codes for physicians to review at the point of care. (Example: Ambience Healthcare’s AutoCDI) 2️⃣ CDI via real-time diagnosis support—diagnoses are suggested at the point of care based on clinical data in the EHR, with auto-generated documentation and audit trails. (Example: Regard) 3️⃣ CDI via an AI-driven post-coding / pre-billing review—the entire patient record is ingested and analyzed against what is coded, surfacing suggestions for revenue and quality opportunities. (Example: SmarterDx) To date, AI in healthcare has focused primarily on administrative use cases. With the increasing adoption of AI CDI solutions, we’re now taking a step closer to clinical workflows. As clinicians get used to AI-suggested diagnoses in the CDI context, it will be interesting to see if this increases their comfort with AI playing a role in clinical care. Here's our working list of AI CDI vendors. Anyone else we should add? • Ambience Healthcare • Brellium • Iodine Software • Regard • Semantic Health • SmarterDx   

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Blueprint really is THE platform for mental health therapists. Not only does it give time back to practitioners but also helps them deliver even better care through data-driven insights. And Danny Freed’s personal story on why he started Blueprint is becoming a reality with Blueprint 2.0

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How do we use technology and new business models to connect care teams across specialties in service of better patient outcomes at lower cost? Care convergence brings together different clinical disciplines, tech and new payment models to take on the costliest conditions in the system from #diabetes to #dimenia. For me, it offers a new way of … Thinking… Investing in … Paying for… Delivering … Care. What does #CareConvergence mean to you? https://lnkd.in/dhtSs-Qa

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I had a great time joining this insightful discussion on Vertical AI and learning from brilliant minds like Aaron Lee and Amit Patankar, alongside Wayne Hu and the team at SignalFire! As we've seen at Peer AI, Vertical AI has tremendous potential to unlock efficiencies and create new opportunities across industries. I’m inspired by the unique approaches my fellow panelists were taking to refine products and keep humans in the loop where it matters most -- and particularly appreciate the similarities in our businesses across very different industries! Looking forward to continued collaboration in this space! #VerticalAI #PeerAI #startups #GenerativeAI

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