Latest / CareTalk: Healthcare. Unfiltered. / 2023 Digital Health Trends & Challenges with Jess DaMassa
Transcript
- 0:00After incredible growth during the pandemic, digital health is adjusting to its own kind of new normal.
- 0:06Interest remains strong, deals are flowing, and artificial intelligence is making its mark.
- 0:11But the market is less frothy or maybe it's even overreacted.
- 0:15Co host Jess Damassa is filling in for John today.
- 0:18She has her finger on the throbbing pulse of the market from up top to down under.
- 0:23I can't wait to dive in.
- 0:33Welcome to CareTalk, America's home for incisive debate about healthcare business and policy.
- 0:38I'm David Williams, president of Health Business Group.
- 0:42Hi David, I'm Jessica DeMassa, I'm the executive producer and host of WTF Health, What's the Future Health.
- 0:47Happy to be here, subbing in for John.
- 0:50Outstanding.
- 0:51Now, Jess, the last time we caught up, you've been in some, uh, some helicopters, as I recall, flying over the Las Vegas Strip, making various lifetime vows.
- 0:58Have you been in any helicopters recently?
- 1:00No, I, I, the one helicopter trip was enough to last a lifetime for me.
- 1:04So still, still living, um, the fairytale romance with my new husband.
- 1:09Um, and I actually, I just took him.
- 1:11With me to Australia.
- 1:12So you mentioned down under, um, we just got back from a trip down there.
- 1:15I spoke at a conference there called Medinfo.
- 1:18It was put on by the Australasian Institute of Digital Health.
- 1:21And Medinfo is actually an international conference that bounces around from location to location.
- 1:26So it was a big coup for them to get it down there.
- 1:28It's really one of the largest global health informatics conferences.
- 1:32And so I got to talk on stage, uh, during the opening plenary about some of the health tech trends that are shaping healthcare here in the States.
- 1:39And then I got to interview a bunch of people and catch up on the gossip about what's happening not only in Australia, but elsewhere in the world.
- 1:46So had a couple of chats with folks from Dubai, um, the director of digital health and innovation at the World Health Organization, and then like a slew of other people.
- 1:55That's awesome.
- 1:56I saw some of your videos and I was thinking a couple things.
- 1:58One was I saw it said Australia and it said Dubai so I figured just hopping around but actually the Dubai guys were over there and in Australia and then The other thing, you know I've been on Cape Cod over the summer and I did a show where I was talking about sharks as part of the new normal here Any sharks in Australia?
- 2:12I think they're known for being hanging around there, but maybe not in the wintertime.
- 2:16Are you talking about like investor kind of sharks, like the ones on shark tank?
- 2:18Or are you talking about like actual legitimate?
- 2:20I was talking about the legitimate animal sharks, but maybe you saw both types.
- 2:26No, I, we just did no, no sharky investors down there.
- 2:29Their investment, um, atmosphere is a little bit different than ours.
- 2:32And then as far as like real life animals, the coolest thing that I saw was, uh, like, I guess, I don't know, what's a group of kangaroo, like, A smack of kangaroos, a flock of them, I don't know, a bunch of kangaroos.
- 2:43We'll have to look, we'll have to look it up.
- 2:44I don't think they call it a roost of roos, but uh, we'll, we'll find out, we'll find out for our next, our next time.
- 2:49A jump of kangaroos.
- 2:50I think, I know the babies are called joeys.
- 2:52You see any joeys?
- 2:53Yeah, I did.
- 2:54I saw a couple little joeys bopping around.
- 2:56It was really cool.
- 2:57That's cool.
- 2:57All right.
- 2:58So there were a couple of things that I saw that you did there.
- 2:59One was you were talking to outcomes health, which was like a primary care general practitioner thing.
- 3:04And, and they were talking about what they were doing.
- 3:06You had a couple of guys that are very eagerly like leaning into to explain what was what, how did you find the sort of primary care?
- 3:12Like, what was the approach down there compared to what we're used to?
- 3:14Oh, it's so cool.
- 3:15So, um, so this is funny too.
- 3:17I have to say this because at first I was like, I'm going to be interviewing these guys from Outcome Health and there's the American Outcome Health like was embroiled in scandal.
- 3:24And so I freaked out the conference organizer when I was like, this is Australian Outcome Health, right?
- 3:28Because look at this news story.
- 3:30And so it was pretty, it was like a funny moment, but, um, these guys are doing something really cool.
- 3:34They're actually a nonprofit organization.
- 3:36They're the largest practice of primary care docs in Australia.
- 3:41Um, among the top three largest mental health care providers, and they also are selling, like, practice management software now so that they can help, like, GPs there, um, aggregate data better and get not only, like, a per doctor point of view of, of how care delivery is going and outcomes and, you know, tracking of revenue and things like that because they're all independently operated businesses, um, but also roll it up to the practice level and then multiple practices.
- 4:05So, the way things are going down there with primary care, I mean, their system is different, obviously.
- 4:09So, it's.
- 4:10You know, central government system.
- 4:12Um, and really the GPS have like a longer term relationship with their patients.
- 4:16So for them to have like a really cool practice management, you know, software that looks at data.
- 4:22What I understand currently the status of their software down there is that the GPS operate independent.
- 4:28From the EMRs that are in the hospitals or that are in ambulatory centers.
- 4:32And so their, their data is their data.
- 4:34And so they have the ability to create these longitudinal views of patients because they have the relationship, they have their own EMR system, and they can do like kind of the thing we wish we could do here in the States.
- 4:45Um, but they still need to plug that into what happens at, you know, higher, uh, more acute.
- 4:49points of care.
- 4:50But, um, they're basically in the same spot we are, uh, with with primary care, I would say a little bit more maybe leaning into preventative medicine.
- 4:59I think those guys from outcome health are really talking about, you know, population preventative health and they really have, you know, the incentives are aligned there to make sure that the population is taken care of, you know, all the way through before things get worse.
- 5:12They really do have more of a health care system there than they do a sick care system.
- 5:16I believe that was the vibe that I got from those guys.
- 5:19No, it was good.
- 5:19They seem to be having a good time.
- 5:21I always like the accent.
- 5:22Anyway, whatever they do, it sounds very, you know, earnest and like a good time.
- 5:26And I do think that, that, you know, these systems that are more primary care oriented, they have a little bit better time, like being an actual system.
- 5:33Because primary care is dealing with prevention and the whole person, whereas specialist is often dealing with, okay, what happened?
- 5:39You know that now they have to have to deal with it.
- 5:41So I'm always fascinated to see the systems that are like that You know, you also had I saw they've got some sort of a health care Digital agency and you uh, you were interviewing the head of that.
- 5:50She seemed interesting I mean, is that their mickey tripathi or is it some sort of kind of a role?
- 5:54She didn't look like it is kind of their mickey tripathi.
- 5:57Like so it is that person And only less on the day.
- 5:59Like there is no office of the national coordinator for, um, health IT, but they're kind of that, yeah, they, they play that role of convening on standards.
- 6:08So fire, for those of you who are big fire fans of the, the, the data sharing standards, they were actually founded by an Australian.
- 6:14And so the father of fire Graham Grieve is always at these events.
- 6:17And this is not my first time at an Austral, Australasian Institute of digital health event.
- 6:22So he's there and, and they're obviously very hot on those.
- 6:25Standards and the fact that they really are like the international leader in terms of data sharing.
- 6:29And so the gossip from her was all about, you know, how their, my health record, they have a centralized government owned.
- 6:37Patient record and that was launched.
- 6:39I think 3 or 4 years ago before the pandemic.
- 6:42Maybe let's call it 2018 ish.
- 6:45And, um, it was like controversial when it was first announced because people were concerned about the government being in their private health data, blah, blah, but I guess since then and the pandemic now it's like looked at as this really great thing.
- 6:58And there's a lot more information than was available in it.
- 7:01Previously now available as a result of, you know, the data sharing that has gone on past the pandemic and the systems are put in place.
- 7:08So really exciting news there about that.
- 7:10You know, when you talk about the father of fire, I'm picturing like Zeus on the mountaintop or some caveman or something like that.
- 7:15But this guy says quality.
- 7:17I mean, he's like the nicest man, but he's just like, he's like international health.
- 7:22I.
- 7:22T.
- 7:22Superstar.
- 7:23Yeah, Yeah, yeah, yeah.
- 7:26Well, the gods are sometimes understated, you know, until they got to have to pull some firebolt out or something in order to toss.
- 7:31Well, from a couple years ago, I did get a chance to interview him.
- 7:33So if anybody's curious in this story, again, his name is Graham Greaves.
- 7:35So go find that on my, on my YouTube channel.
- 7:38We just have to figure out how to spell it.
- 7:39I mean, Graham is relatively easy to spell.
- 7:42Yeah.
- 7:42It's got an E at the end of it.
- 7:44All right.
- 7:45Okay.
- 7:46So now Bax, I think you were backstage side.
- 7:48You're phoning it in from over and, and I saw you, you did an interview with the CEO of Flatiron.
- 7:53And I thought on the one hand you were saying, Hey, great stuff in 10 years.
- 7:56But then on the other hand, it's sort of like.
- 7:57It's been a decade.
- 7:58Do you have anything to show for it?
- 8:00Well, yeah, and that's a big question, right?
- 8:02I think of all of all of our friends who have been at it for about a decade, which I feel like is like pretty, pretty standard for healthcare technology companies, no matter where they're at, if they're in digital health or if they're in health IT or if they're in.
- 8:14Pharma and clinical trials like Flatiron is.
- 8:17So it sounds like they've found, um, their, well, it's their new CEO who's been around now, I think for two years.
- 8:23And, you know, she's just talking about, you know, all the business that they're doing with big pharma organizations since they've been bought by Roche.
- 8:30Remember that?
- 8:31Um, so they've got a lot of contracts with a lot of different players and they're doing a lot of great work in terms of helping, you know, diversify clinical trials, helping bring drugs to market faster.
- 8:40And, and.
- 8:41You know, she put it beautifully in that interview.
- 8:43They've proven the case for, you know, what big data and large language moms can do in this space.
- 8:49And now it's just like, let's go get it.
- 8:51The market is right.
- 8:53You know, RWE is a term that's been talked about a lot, a lot of excitement about that.
- 8:57There's another term that doesn't get a lot of excitement, but I've started to see more about it recently.
- 9:01And that's menopause.
- 9:03And in fact, I saw that you, you know, you were.
- 9:06Yeah, there's male menopause too.
- 9:07I, I heard, I heard, but I don't think it's the real thing.
- 9:10Is there something you wanna tell us here?
- 9:11I don't think I was ever, that John's not around . I don't, I don't think I was ever capable of carrying a, a baby to term, just to be, just to be clear on that.
- 9:18Okay.
- 9:18John May be.
- 9:19John May.
- 9:19In fact, now that you mention it, male menopause.
- 9:21That does explain a lot about John, but we'll let him defend himself later.
- 9:25But I saw, you know, I actually saw a couple articles about this recently that this is an area where employers in particular mm-hmm.
- 9:31are starting to realize, hey, this is, this is an issue.
- 9:33And what happens is that women that are.
- 9:35You know, in menopause age, a lot of them, more of the focus has been, you know, they're caring for their kids, they're caring for their older parents.
- 9:41And even though, you know, it's funny to think about women's health'cause most patients are women.
- 9:46This, it's kind of an under, you know, an an underutilized and underlooked area and it's getting a lot of attention now.
- 9:52And you interviewed somebody, uh, from me, health.
- 9:55Uh, and it seemed like pretty interesting.
- 9:57Seems like a big topic.
- 9:59Yeah.
- 9:59So this is really cool.
- 10:00I love this space.
- 10:01This, um, it's like a couple spaces at one time for me.
- 10:05I love the women's health space.
- 10:06I love the menopause space because we actually spend more time as women, um, in our non reproductive years than we do in our reproductive years.
- 10:14And so there's a whole lot of different things that happen to your body when it stops, you know, naturally producing the hormones that it's used to.
- 10:20And it can affect everything from, you know, your mental health to your bone density and muscle tone and you know everything.
- 10:27So I think that's an interesting space.
- 10:29And then I also think that this is a really cool example of, broadly speaking, how virtual care as a category online is just expanding.
- 10:39And I think that this kind of specialty medicine is like 100% indicative of the next wave, I think, of the new startups that are going to be really making a difference in terms of, um, what's happening with telehealth and with virtual care models.
- 10:54And, you know, kind of that whole idea of, you know, omni channel care delivery.
- 10:58I think that specialty medicine, we haven't even started to see virtual really take hold there.
- 11:03And this is a perfect example of that.
- 11:04So, you know, to your point, David, it's like, this is a huge, um, Yeah, productivity issue if you want to put it in dollars and cents from an employer standpoint.
- 11:12And so having support for women who are, you know, really struggling, you know, during like really the peak of their careers, a lot of them are in leadership positions, you know, and a lot of them have teams that report to them.
- 11:22A lot of them are doing fantastic work and to have to suffer through hot flashes or, you know, some of the other changes that happen, difficulty sleeping at night, whether it's a hot flash or not, or, you know, just even differences in appetite, just changes.
- 11:33And, you know, there's a lot going on there.
- 11:35And so if there's.
- 11:36So if there is more targeted, specialized solutions that really appeal to the diverse needs, you know, the whole picture, holistic health for a woman during that period of time, you know, and then afterward, I think, you know, great.
- 11:49I mean, that's like a no brainer as far as I'm concerned.
- 11:52Yeah, I mean, there were a couple of things that struck me in that interview.
- 11:55One of them was that, as the CEO was pointing out, like.
- 11:57All these things really are conducive for virtual care.
- 12:01You don't need, you know, it's omni channel in a sense, but it can be, um, you know, really being virtual makes sense.
- 12:06And then there's the question about fragmentation.
- 12:08And you're saying, well, how do you coordinate with primary care?
- 12:10And she said something like, you know, 40% of women in this age group like hadn't been to a doctor in some time anyway, so we're probably their primary care anyway.
- 12:18And then the other thing I think, and this was, this is why I believe it hasn't gotten that much attention, that, you know, care for this kind of segment has been Kind of synonymous with hormone replacement therapy, which is now it's and it's much broader, you know than than that That's what I learned.
- 12:32So I I found that was probably of all the different things Uh that I saw that you've done recently.
- 12:36That was the most eye opening one.
- 12:38Thank you Thanks for watching that david.
- 12:40That's really that's really awesome.
- 12:41Thank you Appreciate that more men need to get familiar with that category and I always say like watching an easy little video Having somebody explain, like, those kinds of categories is really important because you can do it in the safety and privacy of your own little home.
- 12:54Exactly.
- 12:55And tell the whole world about it here.
- 12:56Tell the whole world about it.
- 12:57Like, listen to this! Yeah.
- 12:58Casually send it to your wife, you know, whatever.
- 13:02Exactly.
- 13:02I'll do that.
- 13:03I don't think she watches CareTalk anyway, but, uh, she knows.
- 13:06She should be more of a WTFHawk fan.
- 13:09Probably.
- 13:09I'll let her know about that.
- 13:11You know, so Las Vegas, we're talking about that before.
- 13:13So I was, I'm planning to go out there for the, the HLTH health conference, however you want to call it.
- 13:19And I understand that maybe I won't get the helicopter ride this time, but are you going to go, what are you expecting to see out there?
- 13:26Yeah.
- 13:26You know, I mean, this is the biggest show for us.
- 13:28For the year.
- 13:29I mean, so you gotta go, right?
- 13:30And, um, I think that, you know, what I'm optimistic about is that I hope we're going to see some late year deals here.
- 13:37Like, I mean, if we've been quiet, you know, I mean, the first half of the year ended up like, I think rock health had the total around 6.
- 13:443 billion for the first half of 2023 funding.
- 13:47Everybody's tracking the, the, the, the projections are that will hit about 15, which will be either At or below, depending on the what's after the decimal point of where we were last year.
- 13:58And I think like, you know, I feel like a lot of folks are down on that, but I think it's kind of encouraging that we haven't dipped.
- 14:05You know what I mean?
- 14:05That we've kind of maintained.
- 14:07And so I think we're holding our own and I expect at health that there's going to be, there's always announcements.
- 14:12And so I think we'll see some of that.
- 14:14What's been surprising to me, I think so far.
- 14:17And I'd be curious to hear what you think too, David is like at the beginning of the year, I remember saying myself like, Oh, there'll be so many mergers and acquisitions.
- 14:24And like, I really feel like I haven't seen that.
- 14:27And, and it's been a little bit.
- 14:30Disconcerting because I'm like, are these companies, are some of these companies just disappearing quietly?
- 14:35And I just don't know, like I, or what's going on?
- 14:38I mean, like, it's, it's difficult to tell right now.
- 14:40And so I think that at health, it's going to be a good time, at least for me to just double check that everybody that I was, that was there last year that I want to see accounted for is there again.
- 14:50I mean, what are your thoughts on that?
- 14:51Is the amount of M& A activity or lack thereof surprised you for this year?
- 14:57So, you know, like the last couple of years, the big stories have been like about big deals and then about big deals gone bad.
- 15:03So I think I want to have that be the, you know, have that be the big story.
- 15:07It is interesting when, uh, when there's sort of good news and deals, people are trumpeting that and they don't sort of make a quiet thing to say, Hey, you know, we went out of business or, or whatever.
- 15:15What I think has happened is a couple of things.
- 15:17One is you've got companies that, you know, had these.
- 15:20Big valuations in prior years, and then they're hitting their milestones, but they find that they hit their milestones and they go out for their next funding round that, gay, the valuations have gone down.
- 15:29So they're trying, even though they hit their milestone, so they're, they're trying to sort of stretch out what they can do, you know, on a dollar.
- 15:35And then the same thing, I think, for some of these acquisitions, it's like, hey, you know, if I was worth 500 million last year, I don't want to sell for 300 million this year.
- 15:43And so I think that's sort of slowed things down.
- 15:45Now, eventually things happen, you know, because you still have to raise money.
- 15:49So if you don't raise money.
- 15:50Then they're going to either quietly or loudly go away or have a forced sale.
- 15:54So I think you're seeing some of that.
- 15:56And I do believe that, um, you know, maybe we are, maybe we're seeing an uptick of deals in general across healthcare and the economy.
- 16:03And maybe we are going to see a big one, uh, by the time of health, and we'll be able to talk about that.
- 16:08I'm pretty excited about some of the stuff I've been seeing lately.
- 16:11I don't know about you.
- 16:12All that Amazon stuff is really cool.
- 16:14Amazon clinic with wheel and study MD.
- 16:16And then now I feel like for a second, can we just say about the blue shield of California?
- 16:23Killing the relationship with CVS Caremark after 15 long years.
- 16:27It's like a divorce.
- 16:28And now they're like dating Merck Cuban, the cost plus drug company and Amazon pharmacy.
- 16:34I'm like, Oh my gosh.
- 16:35So yeah, I think there's, we're right for a little bit of shaking up here and it's exciting to see some of these.
- 16:41Those are the deals that I've been excited about lately, or to see kind of like what's been coming together in terms of partnership, um, not necessarily M& A, but, you know, just what's been unfolding.
- 16:51I'm like, who's dating who these days?
- 16:54Yeah, exactly.
- 16:55Well, you know, when you talk about the Blue Shield deal, there's been a lot of talk over many years about pharmacy benefit managers and what are you going to transparent PBM or start our own or do something different.
- 17:06And there has not actually been.
- 17:08All that much movement.
- 17:09So now you see something pretty radical, right?
- 17:11When you've got Blue Shield, which likes to be innovative and do something new, working with some players that actually have the heft to do something.
- 17:18Amazon on the one side, Mark Cuban, a cost plus drug company, you know, on the other, and they've got a couple of other partners in there and we'll have to see what, you know, what occurs.
- 17:28It definitely took a whack out of the CVS stock.
- 17:31You know, when they, when they announced that, so you can see the shield, they've got to be an ozempic shot somehow.
- 17:37Right.
- 17:39Exactly.
- 17:39I mean, some people say the, you know, that's going to be the year.
- 17:42I saw the term the other day, peak obesity, and we may have reached peak obesity.
- 17:46And now it's going to go down there.
- 17:47I don't, I'm.
- 17:49A skeptic on that one, but I think the payers are smart on this is like everything I've been hearing is like the buck literally stops here like that.
- 17:57Everybody's going to be everybody's plan is going to be recalibrated next year.
- 18:01And then that is not going to be covered the way that it is right now.
- 18:05Now, Jess, I would say around maybe not at the very beginning of the year, but maybe yeah, the first quarter there was incredible talk about AI And in fact, when it comes to digital health, people were saying, I just made all of these investments in digital health and now is AI chat GPT and others going to come along and.
- 18:23Blow everything up that hasn't quite happened.
- 18:26Wait, what do you what do you think is going on?
- 18:27Yeah I don't know we should you know Go talk to the folks at a haven or IBM Watson or find out about blockchain and all that other We have like love to glom on to you, right?
- 18:38Like it's kind of it feels like that's there for me in terms of our own.
- 18:42I know there's the Gartner hype Cycle, but like on the, in the Jessica DeMasa worldview hype cycle, I feel like like chat AI is kind of there for me right now.
- 18:52No, but I did hear some interesting stuff at that conference in Australia.
- 18:55Not to kind of bring it back full circle.
- 18:57Um, it was a big topic of conversation there.
- 18:59There was actually an international policy forum I was part of with the, you know, some folks from around the world who like, you know, people who were talking about data standards and sharing.
- 19:07And it was, it was interesting.
- 19:08One of my favorite, um.
- 19:10Moments is actually I've captured it on interview in an interview as well.
- 19:13It's an AI policy person from the UK who works with the, the, the UK government.
- 19:18You know, she's like, you know, we're talking about policy for generative AI and we haven't even figured out policy for regular old AI.
- 19:25Like we were just like, we're so far back here.
- 19:27And so I think everybody's, what I got is everybody is blown away by the technology.
- 19:32Not sure if it will, it'll be.
- 19:34Years before it's good enough to put into a clinical situation, I think admin type stuff is where they're looking at right now, but I think that, you know, she put it so well.
- 19:44It's like, we haven't even figured out what we're doing with good old AI.
- 19:49And now we're going to just layer on top of this.
- 19:51Like, there's, there's kind of have to be a stop and an assess your moment in terms of the frameworks for that with a lot of concern being put on.
- 20:00Yeah.
- 20:00Um, how the models are trained.
- 20:02So I was hearing even talk of kind of like a food label.
- 20:05Like we have like the nutrition labels on food, knowing like what ingredients went into whatever it is you're eating.
- 20:10Well, like what ingredients went into training the algorithm for the AI that is now giving you whatever it's giving you.
- 20:16So I, it's a lot of interesting conversation about it, man, like.
- 20:20So early to me so early my next hot area to watch if you're really interested in what I think is, um, that whole infrastructure space.
- 20:29I really think that right now.
- 20:311 of the things that this whole generative AI conversation is bringing up is the fact that.
- 20:36are, you know, is it, is it Coke or is it Pepsi EMR system that we have around the world, which is not interoperable at all is like really going to be like where the rubber meets the road in terms of any type of data, intelligence, analytics, anything.
- 20:51And, you know, those systems were built to be a medical record and to help with billing.
- 20:55They were not designed to do, you know, complex algorithmic modeling and preventative.
- 21:00population health and all that other sexy stuff we wish they could do.
- 21:04So I think that there's going to be that space to me is exciting to watch as the stuff that is going to come up to kind of bridge that gap between where we're at right now and what is next.
- 21:12But I don't, as far as, you know, chat GPT, you know, passing medical boards and whatever, uh, that's going to be a long time in my opinion.
- 21:21So Jess, there's so much more to talk about and I'm going to tell John to go take more vacations so that you can come and co host the show again and we can continue to talk.
- 21:29But for now, I'm going to say that's it for yet another episode of care talk.
- 21:33I'm David Williams, president of health business group.
- 21:36And I'm Jess DeMossa, executive producer and host of WTF Health.
- 21:39Thanks for having me here, David.