Christine (Fernandez) Brocato

This 👂 podcast episode and insight’s from a16z Bio + Health's Julie Yoo spoke so clearly to the fundamental challenge facing both 🩺 clinicians and 🏥 healthcare systems.  There is a huge disconnect between supply, in the availability of clinicians, and demand, in the increasing volume and complexity of healthcare needs. -     36% of physicians plan to reduce their hours next year according to the AMA -     48% of physicians reported feeling burned out in a 2024 Medscape survey At the same time, the demographic baby boomer bubble and steady increase in the prevalence of major chronic disease, which consumes up to 90% of healthcare expenditures according to some estimates, is driving demand. With this context, Yoo points to a major opportunity for AI adoption in healthcare in 2025. Yeah, a VC hyping a wave of new AI companies that will replace the decades of training and experience of clinicians, the skeptic would say.  But Yoo is thoughtful in pointing to the role AI can play, and is already playing, through solutions such as ambient, autonomous scribe solutions (of which local star Abridge is leading the pack) in not replacing, but freeing up productivity for clinicians. There is so much unstructured context in both the complexity of disease and treatment options and the social/emotional considerations that we shouldn't be looking for AI to *replace* clinicians. But companies are getting better at finding the structured, repetitive and time-consuming places where AI tools can *help* clinicians. Nearly two-thirds of doctors cited bureaucratic tasks as the leading contributor to burnout. Rigorously trained-AI driven solutions can be a force multiplier for clinicians, and I’ve seen several interviews where nurses and doctors go as far as to say some of these solutions are ”restoring their joy in practicing medicine”. Our health is precious; and we rightly want any technology engaging with it to be developed thoughtfully and thoroughly tested. This requires top AI talent and diverse and realistic training data. Pittsburgh’s strengths in both areas is why we are an emerging hub for data-driven healthcare. #AIinhealthcare #clinicianburnout #healthinnovation #digitalhealth

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I always read Rock Health's digital health reports as they give a nice pulse feel for what is happening in the digital health funding space. Good to see funds raised in H1 2024 suggest funding in the sector seems to have stabilized at 2023 levels. Its no surprise the report emphasis the buzz around AI and healthcare. There have been clear winners in the AI healthcare space in the area of process and cost optimization and the R&D space. The impact of AI in care and treatment delivery is so far much more muted. One area I never though to look at AI was in its ability to bring together multiple healthcare pathways and digital point solutions into a more holistic seamless experience for the patient. There is a clear trend away from using stand alone digital health point solutions, and could AI address this challenge by facilitating the efficient integration of disparate processes and technology into unified care programs. I can see this happening with digital health products but this will be more tricky to do with physical care programs involving clinicians and HCPs. “AI is helping us combine multiple parts of the care journey, across all care experiences. In the future, benefits navigation, clinical guidance, and care delivery won’t be delivered by separate companies or point solutions within the healthcare ecosystem. They’ll be features that work in concert within products, and they’ll happen in under 90 seconds for a seamless patient experience.” – Glen Tullman, CEO, Transcarent and Managing Partner, 7wireVentures

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California Bill Would Require State Review of Private Equity Deals in Healthcare — Consumer advocates and labor unions are enthusiastic about the plans, but hospitals are not A bill pending in California's legislature to ratchet up oversight of private equity investments in healthcare is receiving enthusiastic backing from consumer advocates, labor unions, and the California Medical Association, but drawing heavy fire from hospitals concerned about losing a potential funding source. Hopefully, more states will initiate the same approach to keeping close tabs on private equity buying healthcare-related entities. Private equity firms raise money from institutional investors such as pension funds and typically acquire companies they believe can be run more profitably. Then they look to boost earnings and sell the assets for multiples of what they paid for them Critics say the profit-first approach isn't good for healthcare. Look to Stewart Health Care where the CEO and C suite lined their pockets while driving the health system into the ground. "Almost all of the most distressed U.S. healthcare companies are owned by private equity firms." Time to rein in private equity vultures out there in healthcare trying to make a quick profit, raising the costs of healthcare in their quest to generate profits. #privateequity, #runningthehospitalintotheground, #vulturecapitalist, #forprofithealthcare https://lnkd.in/ea3pFz43

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What does calling my cable company have to do with Medicaid? I had to call a certain notorious cable/internet provider recently. The one with customer service so bad that it was skewered in a classic South Park episode. I blocked out an hour and braced for my inevitable PCOM aneurysm rupture. Shockingly, it was a breeze. The rep was friendly, and my issue vanished in minutes—a far cry from their usual 'dial-one-to-scream-into-the-void' reputation. So, what changed? Competition happened. A decade ago, our choices for cable and internet were as limited as the soda options in a health spa. Now, thanks to a buffet of streaming services—even including live local TV—the old cable giants had to step up their game or step aside. Turns out, competition is more effective than caffeine at improving service quality. Why can't Medicaid beneficiaries get the same treatment? Currently, most Medicaid coverage is through Managed Care Organizations (MCOs), where the state pays a fixed monthly rate per patient. This model should spur cost-efficiency, but it often just limits the scope of care. Low payments to doctors, restricted access to necessary services—who does that help? Could strict government regulations guarantee better service? Maybe, but FA Hayek (and a basic reading of history) prove that bureaucracy alone can't engineer excellence. And choice for Medicaid patients? Virtually non-existent. Many areas offer just one MCO. If you're dissatisfied, too bad—there's no alternative. It's like being stuck with dial-up in the era of fiber optics. Long wait times for basic procedures, no freedom to seek better coverage... It's eerily reminiscent of the old cable monopoly days. In the private sector, at least there's a semblance of choice: HMOs, PPOs, HSAs... But for Medicaid recipients? Sorry, the state chooses for you. Hope you like it. Our Medicaid system desperately needs a dose of competition. Isn't it time we offer Medicaid patients the luxury of choice that drives quality up and costs down? https://t.co/C7XE6CpIIP Joe Grogan Lisa Grabert Joanne Spetz Cheerag Upadhyaya, MD, MBA, MSc, FAANS, FACS Brian R. Gantwerker, MD, FAANS, FACS Sanjay Dhall Larry Bucshon, M.D.

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It's wild to think in 2024 we're FIRST seeing the DOJ accuse telemedicine conglomerates of criminal drug distribution. How long have we known about these practices in brick and mortar care...? Answer: decades! Take it from someone who prescribed stimulants and other psychotropics to kids over the years - painstakingly measuring and documenting the need and impact - these appalling abuses by Done and Cerebral mean we need more calls for thoughtful pause when it comes to working with startups. Particularly about funding's role - my favorite topic! 🤑 How did we end up with venture capital and PE financing in healthcare that risk the safety of kids in the name of exorbitant returns? Not that all VC or PE dollars are bad, of course, but they're certainly key drivers who shouldn't be in that seat. Did we underestimate these funders as 'barbarians at the gate', much like the pharma reps of the 90's and early 2000's heyday? Have we not learned from Purdue Pharma's aggressive and deadly Oxoycontin marketing? Purdue pleaded guilty to criminal charges and paid $600 million in fines in 2007. Or TAP Pharmaceutical Products's Lupron kickback scheme for the prostate cancer drug? TAP also pleaded guilty to criminal charges and paid $875 million in fines in 2001. Or Pfizer marketing Neurontin, an anti-seizure drug, for off-label uses, such as treating pain and bipolar disorder, even though the drug was not approved for these purposes, and paying physicians kickbacks. In 2004, Pfizer pleaded guilty to criminal charges and paid $430 million in fines. Cerebral and Done's playbooks were practically the same thing, just with a modern mid-pandemic, low-regulatory scrutiny, digital-platform twist. Will appropriate regulation ever outpace American venture greed? Is it even possible to ensure patient safety AHEAD of tragedies driven by the intersection of innovation and venture funding? If you're keeping score, healthcare regulatory reactivity: 1 million. Healthcare ounces of smartly preventive policy: 3. Blech. 😖 When will we finally own that prevention in-house? #healthcare #overdoseprevention #suicideprevention

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We all have seen by now that AI holds the promise of reshaping healthcare delivery, and this goes particularly for marginalized communities. Its widespread adoption, however, necessitates careful navigation of potential biases and ethical concerns to ensure equitable outcomes for all! As we embrace AI's transformative potential, we must continue to actively address issues of access, transparency, and workforce readiness in order to promote a future where technology enhances, rather than hinders, health equity initiatives. #HealthEquity #Healthcare #AI

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The healthcare system is at a breaking point. (Corporatization is eating it up) Corporate and government-led systems prioritize profits and bureaucracy over patient outcomes. And it leaves independent physicians struggling to maintain their autonomy. But physicians are not powerless. WE remain to be the bridge between patients and an increasingly convoluted system. It’s time to leverage that position and reclaim our role as patient advocates. 📌 Check out the 5 key strategies to strengthen independent practices and restore influence: 1) Shared Ownership of Vendors 2) Building Alliances for Strength in Numbers 3) Educating the Public 4) Innovating Through Independence 5) Claiming a Seat at the Table This isn’t just a fight for physician autonomy—it’s a fight for better healthcare for all. Where do you see healthcare going from this point? How do we fight corporatization? 🤔 #healthcare #corporatization #healthcaresystem #physicians #sharedownership #patientcare

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Title: Bridging the Gap: Public and Private Healthcare Collaboration On June 11, we hosted a pivotal meeting with key voices from both private healthcare providers and public healthcare regulators and providers. The consensus was clear: collaboration between the public and private sectors is essential to create a robust and sustainable healthcare system. Here’s how we can achieve this: 1. Unified Vision:Establish common goals like improving patient outcomes and increasing accessibility. 2. Leverage Strengths:Public systems excel in broad coverage and preventive care, while private providers lead in innovation and efficiency. 3. Data Sharing:Integrate data to enhance diagnosis, treatment, and preventive measures. 4. Joint Investment:Collaborate on funding for advanced medical technologies and telemedicine. 5. Policy Harmonization:Align policies to reduce bureaucratic hurdles and foster innovation. 6. Public-Private Partnerships: Pool resources to tackle infrastructure and rural healthcare challenges. 7. Continuous Improvement: Regular feedback and communication to adapt to changing needs. Our meeting highlighted the potential of collaboration in transforming healthcare. By working together, we can build a more efficient, equitable, and responsive healthcare system. Let’s commit to this collaborative journey for a healthier future. #UHC #medicalai #health #PPP

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Redesign Health has launched its largest fund to date, securing $175M to support over 20 new healthcare startups. Founded in 2018, the venture builder has previously incubated more than 60 companies, including Scriptology and Vivid Health. The new fund aims to address challenges such as healthy aging, interoperability, and expanding sites of care. This funding underscores investor confidence in tackling the $4T healthcare market's persistent challenges.

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Which founders fit the mold for success in healthcare? I spoke with Anne DeGheest, Founder and Managing Director at HealthTech Capital, about the key characteristics of successful #healthtech entrepreneurs. Listen to the full conversation here: https://lnkd.in/eqwUCkPx

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With $8.2B invested into digital health so far, 2024 is shaping up to be a $10-12B annualized investment year. This would make funding comparable to 2023. I suspect with continued venture investment, boards will require exits. One thing I’m particularly interested in is terms of recent acquisitions and growth equity rounds. What type of downside protection (e.g., structure) is not disclosed to media that protects the investor? Will funds who have specifically raised capital to buy stakes in VC-backed companies at significant discounts? And what revenue/EBITDA multiples are looking like for M&A in 2024/2025? Every founder has to spin their story in a positive light when speaking to media. I know this because PR agencies reach out to me about their clients (p.s. I don’t consider myself a member of the media). The private health tech market feels like it could significantly rip or drop in the next 12-24 months. Therefore, my general advice to early-stage founders is to assume you will not raise capital beyond your seed round. If the investor market heats up in 2025, you will have the option to raise a series A at that time if you’ve built a strong business. If you’ve already raised series c or beyond, then one of your goals will be to time the exit (M&A or IPO) appropriately so that you garner an attractive multiple. There are few private health tech startups that have founder board control, can reinvest positive cash flows, and stay private forever. So by necessity of the structure, exits are desired. - - - - Image Credit: Rock Health

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When the Digital Health Awards categories came out this year, we were thrilled to see one called "Biggest Healthcare Savings Story". Oshi Health continues to demonstrate total cost of care savings: first in a clinical trial, then in 18 months of a value-based contract with a national payer and now with dozens of employers over multiple years. When you provide high-touch care that identifies root causes of #digestivehealth conditions and helps patients gain control of their condition, the cycle of repeated diagnostic testing and emergency room visits stops and total cost goes down. We are honored to be a finalist in this important category! #valuebasedcare #wholepersoncare

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Alot of bad actors and a few good actors. $2.5T HC capital raised & $1T invested by PE in last decade. $31B in 2013 vs. $217B in 2021. We know the story. Misaligned incentives - unrealistic multiples, short-term profit focus, aggressive cost-cutting, unrealistic scaling, misunderstood market dynamics, just to name a few. However, our industry needs money. But our industry is more infrastructure asset class than tech start-up (James Nicholls gave me that epiphany). Mic drop on the lyrical genius of Alex Fair of MedStartr Ventures as he literally gives the whole story poetic justice as he reads HIS POEM on this "On The Road at VIVE" episode of The Reverse Mullet Healthcare Podcast w/BP2 Health. This is the perfect episode for a Friday afternoon! He and Paulo J Machado donned the actual reverse mullets and joined us back in February at #VIVE2024 to talk about the need for REAL change in healthcare, startup focus and investor expectations. It was one to remember and one that is in desperate need of a full-length follow-up episode. Give us a like and a watch or a listen https://lnkd.in/e4w4mjkv https://lnkd.in/egmK3kMB

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Thanks 🙏 Derek Sivers for supporting our UCLA Health Guest Speaker Series! What Healthcare Can Learn from Derek Sivers' Philosophy of Simplicity Today I had a chance to interview Derek Sivers. His radically simple approach to business and life holds powerful lessons for healthcare transformation. Sivers built CD Baby into a $22M music empire with an unrelenting focus on simplicity. No fancy systems. No bloated processes. Just ruthless prioritization of what actually serves customers. Consider this- - The average hospital uses 16 different EMR systems - Clinicians spend 2 hours on administrative work for every 1 hour with patients - A typical primary care visit generates 13 different workflows across 7 departments What if we approached healthcare with Sivers' philosophy? His famous quote resonates: "If you're not saying 'HELL YEAH!' about something, say no." Imagine evaluating every process, form, and meeting against a simple standard: Does this directly improve patient care? If not, why are we doing it? Sivers also emphasizes "Addition by subtraction" - the power of removing unnecessary complexity rather than adding new solutions. In healthcare, we often layer new tools and workflows onto broken processes instead of fixing root causes. The path forward isn't more complexity disguised as innovation. It's having the courage to strip away what doesn't serve our core mission: helping patients thrive #HealthcareInnovation #Simplicity #ProcessImprovement #HealthcareTechnology #Leadership

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Excited for our webinar tonight: Investing in Healthcare Startups: An Angel Perspective When: tonight at 6 pm eastern Where: https://lnkd.in/dPUFNbhe We had had a couple last minute changes and I am very excited to have an engaging conversation with Thanasi Tsiodras, Dr. Shaun Kuan and Regina Prasad, MS. We will be discussing: 1. How to start investing in startups 2. Lessons from your winners and losers 3. What are some red flags in a startup 4. What is your diligence process like? 5. How do you get deal flow?  6. What is the ideal angel investor archetype? Who should invest in startups and who shouldn't. #healthcare #venturecapital #angelinvesting

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Fabulous webinar and conversation yesterday about AI in Healthcare cross-country from Mid-Atlantic Permanente Medical Group | Kaiser Permanente with my colleague from SOUTHERN CALIFORNIA PERMANENTE MEDICAL GROUP Dr. John Rott, thank you Chris Corriveau and the entire team who helped organize. Sharing these apropos tips from our most recent Forbes Technology Council article on "19 Ways To Manage Different Stakeholders 😍" https://lnkd.in/eWymqdkg Top 19! 1. Strive For Collaboration 2. Prioritize Investments Based On Results 3. Communicate Openly 4. Embrace A Long-Term Portfolio Strategy 5. Prioritize With A Strategic Framework 6. Assess Dependencies 7. Develop A Transparent, Systematic Framework 8. Determine Needs And Wants 9. Use Outcome-Oriented Metrics 10. Consider The Value 11. Help Stakeholders Find Common Ground 12. Establish And Follow A Principle-Driven Approach 13. Let Data Drive Your Decision-Making 14. Implement Teams To Focus On Stakeholder Engagement 15. Prioritize Streamlining Workflows And Processes 16. Understand Your Customers’ Needs 17. Hold Stakeholder Meetings Regularly 18. Put A Governance Mechanism In Place 19. Encourage Empathy

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In our recent chat, Christina Farr defined today’s healthcare market in one word: weird. As “stay alive until 2025” shifts to “grow now,” boards and investors are seeking new CEOs to usher in long-term sustainability. But the weird market is complicating things. That’s why I was excited to join Chrissy, Ash Zenooz, MD, and Luba Greenwood, J.D. on the latest episode of the Second Opinion Media podcast. Listen here: https://lnkd.in/edyDpGny We discussed everything companies and candidates need to build the relationships that form successful CEO searches. Here are three key takeaways. 1) The traditional view of what makes the “right” CEO is changing. Boards need to look beyond what CEO candidates have done and where they’ve worked. A first-time CEO who understands your challenges and offers creative solutions might be a better bet than someone who’s been there and done that. 2) CEO success is a give and take. To deliver results, your next leader needs to bring adaptability, reliability, and quick decision making — an experienced executive chair, and patience to build the proper team will pay long term dividends. 3) Relationships beat transactions. Just as transactional relationships hurt healthcare, transactional CEO searches hurt companies. Finding the right leader is about understanding candidates as people: their backgrounds, thinking, and outcomes. Invest the time to build a relationship with your candidates, and do it in person. Thank you for sitting down and talking all things healthcare talent with me, Chrissy, Ash, and Luba! YouTube: https://lnkd.in/edyDpGny Spotify: https://lnkd.in/eWb6p_z2 Apple: https://lnkd.in/eEDTp4VQ

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I’ve been given advice that the fastest way to monetize HER Heard without charging the end user (woman) is trackers and selling data. Instead, I’d like to build something more trustworthy. I don’t want to be in a headline like this. If you are not paying, then you are the product (you/your data are being sold). There are newer ways to deindentify data or even to aggregate things women search for that can be of interest to various stakeholders. In theory that could be okay to sell, but in a post-Roe world with laws encouraging bounty hunting, I am vetting the choices ahead. I am all for moving fast, without breaking things.

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