AI in Health: $1B Fundraise, Cadence & Hims Updates – STAT News Roundup

A Boost for AI-Powered Healthcare: Nabla Set to Benefit from AMI’s $1 Billion Funding

The landscape of health technology is shifting as Advanced Machine Intelligence (AMI), founded by former Meta chief AI scientist Yann LeCun, secures $1 billion in funding. This substantial investment isn’t just a win for AMI. it also positions AI documentation company Nabla for a potential competitive edge. The funding will fuel AMI’s development of “world models,” a new approach to AI that promises more reliable and auditable decision-making in healthcare, and Nabla will have early access to this technology. The connection between the two companies runs deep: AMI’s new CEO, Alex LeBrun, is also the co-founder and CEO of Nabla, and LeCun himself is an investor in the documentation startup.

Nabla, which raised $70 million last year, aims to automate complex and laborious healthcare tasks. The company’s COO, Delphine Groll, confirmed to Stat News that AMI and Nabla are already collaborating closely, despite the absence of a formal equity or licensing agreement. This partnership highlights the growing interest in leveraging advanced AI to streamline healthcare processes and improve patient outcomes.

What are ‘World Models’ and Why Do They Matter?

The core of AMI’s work lies in developing “world models,” a concept that differs significantly from current large language models (LLMs). According to a blog post published by LeBrun, Groll, and Nabla CTO Martin Raison, world models “learn abstract representations of how environments function, more similar to how human beings reason about the world.” This approach aims to address a key limitation of LLMs: their tendency to produce unpredictable outputs. The executives suggest that world models will deliver “safe, deterministic, auditable decision-making,” a crucial requirement for widespread adoption of AI in clinical settings. This also offers “a credible regulatory pathway for autonomous, agentic systems,” potentially easing the path to approval for AI-driven healthcare tools. You can read the full blog post here.

The promise of more reliable AI is particularly relevant as healthcare increasingly adopts AI-powered tools for tasks like medical transcription, diagnosis support, and personalized treatment plans. However, concerns about accuracy, bias, and patient safety have slowed the pace of adoption. World models, with their emphasis on deterministic and auditable outputs, could aid to alleviate these concerns.

Cadence Health and the Medicare ACCESS Model

Beyond the AMI-Nabla collaboration, other developments are unfolding in the realm of AI-driven healthcare. Cadence, a company specializing in remote patient monitoring, will participate in the first cohort of the Medicare ACCESS model, launching in July. This program aims to incentivize technology-enabled care by aligning payment with patient outcomes rather than individual services. Cadence plans to leverage AI to develop its remote monitoring services more cost-effective. More details on this can be found here.

The Medicare ACCESS model has been the subject of debate, with some observers expressing disappointment over the payment amounts set by Medicare. However, Cadence CEO Chris Altchek believes the program offers a viable pathway for integrating AI into clinical practice, and the company is actively working to ensure its AI systems meet the rigorous standards of the Food and Drug Administration (FDA).

Navigating Regulatory Hurdles for AI in Healthcare

The FDA’s role in regulating AI-powered medical devices is evolving. The agency is grappling with how to assess the safety and effectiveness of algorithms that are constantly learning and adapting. A key challenge is ensuring that AI systems are not biased and do not perpetuate existing health disparities. Companies like Cadence are prioritizing safety and transparency in their AI development efforts, recognizing that regulatory approval is essential for widespread adoption.

Industry Shifts: Hims, Novo Nordisk, and the GLP-1 Market

The pharmaceutical and telehealth sectors are also experiencing shifts. Hims, a telehealth company, will scale back marketing of compounded versions of GLP-1 medications (used for obesity and diabetes) and instead offer branded versions of Novo Nordisk’s drugs. Novo Nordisk, in turn, is dropping a patent infringement lawsuit against Hims. This agreement follows Hims’ announcement of plans to market a compounded GLP-1 pill, which prompted the legal action. You can read more about this development here.

This situation highlights the complexities of the GLP-1 market, which has seen surging demand for weight loss medications like Wegovy. Compounded versions of these drugs have raised concerns about quality control and safety, prompting regulatory scrutiny. The agreement between Hims and Novo Nordisk reflects a move towards greater standardization and quality assurance in this rapidly growing market.

Payer Data Reveals Potential Cost Increases Linked to AI

While AI holds the promise of reducing healthcare costs, emerging data suggests a more nuanced picture. Blue Cross Blue Shield has released an analysis indicating that AI coding may be driving up hospital billing. The analysis of postpartum hemorrhage claims suggests that AI is being used to “upcode” procedures, leading to higher charges. More information on this report can be found here.

This finding raises concerns about the potential for AI to exacerbate existing cost pressures in healthcare. It underscores the need for careful monitoring and oversight of AI-driven billing practices to ensure that patients and payers are not being unfairly charged.

Other Notable News in Health Tech

Several other developments are worth noting: Talkspace, a mental health platform, is being acquired by Universal Health Services for $835 million, marking a significant consolidation in the digital mental health space. Researchers are also exploring the idea of treating health data as a “public utility,” empowering patients to control and share their own medical information. Finally, Verily and Samsung have announced a collaboration to integrate Samsung’s Galaxy Watch with Verily’s data platform for clinical research, and Oura has acquired Doublepoint, a developer of AI gesture recognition technology.

These developments collectively paint a picture of a rapidly evolving health tech landscape, driven by innovation in AI, remote monitoring, and digital health platforms. As these technologies mature, it will be crucial to address the ethical, regulatory, and economic challenges they present to ensure that they benefit patients and improve the overall quality of care.