Saquib Rahim, MD, MBA

John Kell's recent article in Fortune, "The best investment opportunities in AI for health care right now," provides incredible insights about the challenges of healthcare data and how it impacts the advancement of #ai. Three out of every four leading health care companies are experimenting with generative AI or attempting to scale it across their business. What are they creating and why? Venture capitalist Deena Shakir asks founders if they "are aiming to solve a technology problem or a clinical adoption problem". Solving existing problems will speed decision making and improve data quality. The Deloitte report:  “Navigating the Emergence of Generative AI in Health Care” shares some of the data challenge in health care. While boasting the largest source of raw data, 80% of the data are unstructured.  Simon Gisby, managing director and the global leader of life sciences and health care at Deloitte further expounds "But as an industry, we’re not surprisingly that good at analyzing and drawing correlations out of that" https://lnkd.in/gXE_HVG2 Read thus great article for use cases and examples from fertility and maternal health care to predicting adverse outcomes to drug development and immunotherapies. The future of health and #ai is the hope that we can provide value in health care data equal to the volume we produce Read the article here: https://lnkd.in/gTx6ic_b

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If you're responsible for setting or executing an innovation strategy at a healthcare or life sciences organization, the Redesign Health Innovation Maturity Index can help you assess where your organization stands. If your strategy scores are on the lower side, don’t worry—we’ve got you covered. We’ve compiled a list of our favorite resources to help you strengthen your innovation strategy and align it with your business goals: 📖 Articles: "The Discipline of Innovation" by Peter F. Drucker: Learn how innovation can be systematic and a key element of your strategy. "You Need an Innovation Strategy" by Gary Pisano: Why every organization needs a formal innovation strategy tied to overall goals. "A New Approach to Strategic Innovation" by Haijian Si, Christoph Loch, and Stelios Kavadias: A fresh look at integrating innovation into core business strategies. 📚 Books: "The Innovator's Dilemma" by Clayton Christensen: Discover why large organizations struggle with disruptive innovation and how to overcome it. "Ten Types of Innovation" by Larry Keeley: A practical guide to building a diverse and effective innovation strategy. "Design Thinking for Strategic Innovation" by Idris Mootee: How to merge design thinking with strategic planning. "Playing to Win: How Strategy Really Works" by A.G. Lafley & Roger Martin: Learn how to create and execute winning strategies. Want to know where your organization stands on innovation? Take our 10-minute Innovation Maturity Survey to get your personalized assessment and start building your roadmap to innovation success today! 💡 https://lnkd.in/ekQ4AvNe We'll be selecting a few random respondents to receive one of the books from our reading list. And, if you have a recommended read to add to the list, please comment below 👇

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I had the honor of participating in an Oxford style debate this week at the Oliver Wyman Health Innovation Summit: “Consumers Know Best, Or Do They?” As healthcare continues to evolve, the rise of consumer point solutions has promised greater convenience and affordability, allowing patients to access care in new ways. It’s exciting to see so many innovations aimed at improving the healthcare experience. However, the question posed was this: Do the convenience and affordability of these solutions deliver better access and health? Or, does an integrated approach—driven by health systems—ultimately drive better outcomes? I believe that healthcare is not just about transactions and convenience; it’s also about long-term, coordinated care for the whole person across the continuum. Consumers need partners to support them in understanding their choices. Integrated systems, like Fairview Health Services, are partners in care. And while technology plays a crucial role, there’s no substitute for the integrated systems that ensure every doctor, every specialist, and every caregiver is on the same page when it comes to the health and well-being of the people we serve. I’d like to thank my fellow debater, Laura Jensen from Amazon Pharmacy, for a thoughtful and insightful discussion on the role of consumer-driven care. There’s no doubt that together, we can find a way to merge the best of both worlds—leveraging innovation while ensuring that the human element of healthcare remains at the forefront.

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Key trends and takeaways from HLTH 2024: 1. AI's Evolving Role: AI dominated discussions, with executives acknowledging its potential while also recognizing challenges in accuracy and clinician trust. There's a shift towards focusing on the practical applications of AI, with a call for partnerships to ensure reliable testing and implementation. 2. Infrastructure Focus: Beyond the glitzy AI tools, there's a growing emphasis on the "picks and shovels" needed for healthcare data accessibility, including infrastructure, compliance, and interoperability. Executives believe that improving data flow will facilitate the effective use of AI. 3. Middlemen Under Scrutiny: Pharmacy benefits managers (PBMs) faced criticism for their role in rising drug costs, with discussions highlighting misaligned incentives and the need for transparency in healthcare pricing. 4. Women's Health Spotlight: Women's health initiatives gained attention, particularly following government funding announcements and personal stories shared by advocates. However, investment in women's health remains minimal compared to overall healthcare funding. 5. Interest in Psychedelic Medicine: The potential of psychedelics for treating mental health conditions garnered significant interest, with discussions about funding and research moving forward, especially within the Veterans Affairs system. Executive Takeaways: Leaders from various sectors emphasized the importance of consumer-focused strategies, collaboration, and the need for responsible AI usage. There was a consensus on the critical role of addressing healthcare accessibility, improving patient experiences, and fostering innovations that genuinely enhance care delivery.

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This is a great report from Mckinsey of what health system executives are prioritizing

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Great blog by Tom Nolan... if you want to learn more about the differences in the #healthcare markets in the US and abroad, take a look at this part 1 of 2 post. #medtech #consulting #healthcaredelivery #purchasedservices #indirectspend

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Some very interesting dynamics in the health tech space with fewer but still good deals that focus on value and return but what is more interesting is what is looking like a slowing down on the M&A side with fewer deals in Q3 this year vs last. https://lnkd.in/ervqAV9n

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SPACs are increasingly used to take private healthcare companies public, offering an alternative to traditional IPOs. This trend has been growing, especially between 2012 and 2021. SPACs provide a pathway to public markets for companies that may not meet traditional IPO financial performance targets. They also typically incur lower underwriting fees and are less likely to face shareholder lawsuits. 👉 SPACs could lead to higher prices for healthcare services and products due to increased consolidation and vertical integration .... ultimately raising costs for employers, insurers, and patients. 👉 Corporatization of healthcare through SPACs may result in adverse clinical events, as seen with previous private equity acquisitions. 👉 The need for regulatory compliance and transparency may present challenges. 👉 SPACs can be risky investments, as they often merge with companies that have not yet achieved profitability. 💡 Financial engineering and creating value in the healthcare value chain are two distinct pursuits. #SPACs #SVP #HealthcareIPO #Digitalhealth

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Founders Intelligence spoke with over 30 founders, investors, experts, and corporate leaders to compile an actionable guide to help businesses achieve scale in digital health. They explore six overarching problems, bringing these to life with real-world case studies and delivering targeted recommendations for how corporates, start-ups and #healthcare providers can position themselves for success: https://accntu.re/3V35g7p

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Outstanding analysis…Augmented implementation has had such an impact in health and beyond.

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Q2 2024 saw a resurgence in home-based care M&A, driven by strategic acquisitions and a cautious yet optimistic private equity landscape. Based on the Q2 2024 Home-Based Care M&A Report from Mertz Taggart, here are the top three trends that I see: 1. Increased Deal Activity: After a slow first quarter, M&A activity picked up significantly, particularly in home health and hospice sectors. 2. Private Equity Influence: Private equity’s role in M&A was smaller than usual due to tightened credit markets, but optimism is rising for more deals in the latter half of 2024. 3. Strategic Acquisitions: Companies like Addus and Amedisys made strategic moves to expand their market share, signaling continued consolidation in the industry. As deal activity heats up, how will these trends shape the future of home care? You can read the full report here - https://hubs.ly/Q02KY4r90 #HomeCare #MergersAndAcquisitions #HealthcareTrends

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Please see our Deloitte discussion on the evolution of the use of AI in our industry...building eventual trust is an increasingly important part of that puzzle.

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Direct Pediatric Care and the other derivatives of direct care are becoming mainstream. Agree, it is not just a fad, or a fringe model, or one only for patients with disposable income. Direct care models are part of the solution to our broken fee-for-service medical care. It is about prevention, not repair. It is about relationships, not throughput. It is about doing what is right for the patient, not the industry. I love seeing the rapid progress and attention in the market place. https://lnkd.in/gHHKSwBd

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In the last 4 years, we've seen dramatic surges and falls in healthcare private equity deals and volumes. PE investments can revitalize existing healthcare organizations and breathe life into new, innovative approaches. Read more from my colleague Troy Keach on the top PE trends emerging in 2024.

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***From Best Practices to Next Practices*** This article from Jon Warner and Jomo Kenneth Starke discusses the shift from Return on Investment (ROI) to Return on Value (ROV) in healthcare, emphasizing a holistic approach that includes innovation, impact, and investment returns. ​ ROV considers qualitative factors alongside financial gains, guiding organizations to align investments with their missions. ​ It encourages long-term perspectives, justifying patient capital for incremental value creation. ​ Challenges in quantifying non-financial returns are acknowledged, but the benefits of ROV outweigh them. ​ This framework aids in strategic decision-making, resource allocation, and partnership formation to maximize value for individuals and society. ​ #Healthcare #ReturnOnValue #Innovation #PatientOutcomes #Collaboration #nextgen #valueovervolume https://lnkd.in/gihZBhSY

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Quite accurate description of the increasing HC IT M&A supply/demand imbalance: " HC IT M&A trends have become stratified into three distinct categories: high-quality, medium-quality, and distressed companies. Companies with strong financial performance (revenue, growth, and profitability) are attracting premium valuations, potentially due to both their merits and a supply demand imbalance. This high bar makes it challenging for mid-tier companies, particularly those with operating losses, to find buyers at their asking price due to a valuation mismatch. As for distressed companies, HGP estimates that roughly 15-20% of M&A deals in the US involve companies selling for less than their total invested capital. This stratification presents both challenges and opportunities for participants in the health IT M&A market. Well positioned strategic buyers face a trade-off between high-priced, high-quality ‘A’ assets and potentially undervalued distressed targets. Private equity firms must balance high-growth, high valuation opportunities with riskier, yet potentially rewarding lower quality investments. Mid-tier companies need to enhance their financial profiles to remain attractive in a market favoring extremes. " https://lnkd.in/etR5H667

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Join our Deloitte discussion on emerging venture trends, with a particular focus on the industries most aligned with convergence, including Fin Tech and Health Tech

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Walmart closing 51 Health Centers over “Lack of Profitability!” Walmart Health Virtual Care (telemedicine) offerings will also end. Article by Daniella Alessandra Genovese Fox Business Network April 30, 2024 MY TAKE: · What does ‘lack of Profitability” really MEAN? o Is it meant that this service line is losing money – financially upside down? o Or does it mean that the line is not producing the “EXCESS PROFITS” that were envisioned - and that corporate leaders and shareholders demand?   ·    Healthcare delivery is NOT a simple business model, though increasingly we see corporate entities entering this arena, often envisioning large profits or - in the case of private equity - valuable ASSETS whose value can be accelerated over short periods - or at least sold off as value-added components.   ·    It has been said that the LURE of ‘excess profit’ invariably leads to GREED, and that in healthcare - greed invariable leads to worsening conditions within healthcare workplaces and worsening outcomes for patients! American Medical Association American Hospital Association American College of Emergency Physicians U.S. Senate Committee on Health, Education, Labor, & Pensions Tennessee Medical Association Jesse Pines Chadd Kraus Lara Vanyo Rita Manfredi TENNESSEE COLLEGE OF EMERGENCY PHYSICIANS Timothy Wilson Ryan Stanton Gabe Kelen, Deidre McPhillips Mollie Pillman Alison Haddock, MD, FACEP Susan Morse mor Chelsea Torres Amy Feldman Jesse Ehrenfeld MD MPH Mel Cortez Larry Bucshon, M.D. Peter Stavros Fox article link - https://lnkd.in/gynsbScT

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Healthcare organizations must build AI solutions through a health equity lens from day one. Failing to do so places underserved communities at risk. To understand what's at stake, consider the harm caused by a biased equation for prioritizing kidney transplant patients. The test overestimated Black patients' kidney function, ranking them as healthier than non-Black patients. As a result, thousands of Black patients ended up farther down the transplant list than their conditions warranted — waiting years for the care they deserved. One woman who secured a spot on the list in 2019 discovered she should've earned her place in 2015, the Associated Press reported. You can read the full story here: https://lnkd.in/gdcF5h7d Today, efforts are underway to make up for the mistake. More than 14,000 Black people have had their wait time for a kidney transplant adjusted to address the bias. But healthcare can't stop there. We must seize this moment to commit to prioritizing health equity in AI solutions. Equations like the one used to evaluate kidney function already support countless care decisions for payers and providers. As AI solutions proliferate, the algorithms will only become more common and complicated. If organizations don't prioritize health equity in the AI development process, they risk building vast networks of solutions that actually harm communities. Once these solutions are in place, it may take years before experts can trace harmful practices back to lines of biased code. Building AI solutions is highly technical, but reducing bias requires a human touch. Including the voices, cultures, and lived experiences of diverse groups throughout development — from data gathering to deployment — will help ensure solutions respect everyone's needs. Assembling diverse teams to monitor AI once it's operational will help keep the technology from veering off course. Healthcare is poised to adopt AI in a big way. Oversight will determine whether they perpetuate past harms or create a healthier, more equitable future. #AI #HealthTechnology #HealthEquity #Healthcare

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