Rebecca Torrence
As healthcare startups increasingly focus on developing artificial intelligence solutions for sale to hospitals, a recent report indicates a lack of established policies within many health systems to support this technology.
A survey involving 34 leaders from US health systems revealed that only 16% have comprehensive policies in place specifically for the utilization of AI and data access. Surprisingly, the majority, accounting for 65%, admitted to having no policies addressing AI at all, despite some mentioning the existence of broader guidelines that could potentially encompass AI applications.
The survey, jointly conducted by the Center for Connected Medicine at UPMC and KLAS Research during October and November, targeted health systems of various sizes, shedding light on the challenges healthcare faces as AI-driven software becomes more prevalent in the industry.
While healthcare has traditionally been slower in adopting new technologies compared to other sectors, recent events such as the COVID-19 pandemic have accelerated the urgency for innovation. Investors and medical professionals are increasingly recognizing the potential of AI to streamline healthcare delivery, alleviate burnout among staff, and enhance patient outcomes.
Nevertheless, a significant portion of healthcare leaders remain cautious about fully embracing AI initiatives. Reasons cited for the absence of established policies include the early stage of AI adoption within the industry and a wait-and-see approach for federal regulations governing AI implementation.
Despite the Food and Drug Administration issuing guidelines for AI applications in medical devices, a comprehensive framework for AI adoption and evaluation in healthcare is still lacking. FDA Commissioner Robert Califf acknowledged the challenges in keeping pace with rapidly evolving technologies, indicating a delay in providing broader regulatory guidance.
Looking ahead, healthcare AI startups are poised to address critical industry challenges, attracting interest from venture investors seeking innovative solutions. Amidst workforce shortages and escalating burnout rates prompting some healthcare providers to exit the field, there is a growing demand for AI-driven tools to streamline administrative tasks and alleviate burdens.
For instance, Abridge, a company offering AI-enhanced software for clinical documentation, is in discussions to secure over $50 million in venture funding. Competing with established players like Nuance, which currently dominates the market with its AI-powered solutions deployed in 77% of US hospitals, startups such as Ambience Healthcare and Nabla are vying for market share and driving innovation.
The integration of AI software with electronic health records (EHRs) emerges as a key consideration for health systems evaluating AI solutions. Startups’ ability to seamlessly integrate with EHR systems, particularly with established platforms like Epic, can significantly impact adoption rates. Notably, a substantial number of health system leaders expressed intentions to adopt AI software that integrates with their EHR systems, signaling a shift towards more tech-enabled healthcare practices.
Industry experts anticipate a pivotal phase in the evolution of AI within healthcare, where the success and viability of various startups will be tested. With major health systems piloting AI solutions, the coming months are expected to reveal the frontrunners in this evolving landscape, according to Bryan Roberts, a partner at Venrock venture capital firm.
