Monday, May 10, 2021
Over the weekend, I finished reading a startlingly disturbing book on the murky and dangerous world of cybercrime that costs hundreds of billions every year, including healthcare. “This is how they tell me the world ends” by NYT reporter Nicole Perlroth is a stemwinder of a tale that walks us through the cyberweapons arms race currently raging among nation states, unseen by most of us. It also tells us how vulnerable our information technology backbone is today and how cybersecurity now needs to be a more urgent national priority than ever. Coincidentally, San Diego-based Scripps Health suffered a crippling takedown last week of its website by malware that has had patients locked out for more than a week.
While consumers and digital health solution providers continue to push for releasing access to patient medical information with the CMS information blocking rules, the case of a mental health startup in Finland that was hacked and found all its patient records dumped online in public should give us some pause. With the mad rush towards digital health riches underway, it’s a matter of time before one of them ends up being the one weak link that stops us in our tracks.
Telehealth companies continue to sell like hot cakes. The latest one to get acquired is MeMD, an unknown company that Walmart picked up to expand its presence in the virtual care market. MeMD’s customers include employers such as the used-car agency Carvana that provides virtual care and mental health services to its employees with the platform. Walmart’s other telehealth partner Doctor-on-demand recently merged with virtual rounding platform provider Grand Rounds.
As VC funding takes on dizzying heights and digital health companies mushroom, their customers are finding it hard to keep up. Clearly, the supply of digital health providers overhangs demand by a wide margin. The question may be: how soon are we going to see a shakeout? A recent study by Philips Healthcare finds that healthcare leaders are overwhelmingly committed to healthcare in the short term but expect to invest more in AI in another 3 years.
In my latest podcast episode, I interview Sachin Patel, Chief Executive Office of Apixio, a healthcare analytics company that was acquired recently by Centene. Take a listen.
Have a great week.
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This Week in Digital Health Markets
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The cyberattack last weekend took down its IT systems stemmed from malware on its computer network. Fierce Healthcare
A mental health startup built its business on easy-to-use technology. Patients joined in droves. Then came a catastrophic data breach. Wired
Allowing patients greater access to and control of their health records could enable better care coordination and management. But giving more access to smartphone apps and other entities that aren’t covered by HIPAA could open a whole new can of worms. Modern Healthcare
As investors pour money into health startups, customers press for price breaks and streamlining; ‘We are inundated.’ The Wall Street Journal
Retail giant’s move into virtual health follows Amazon’s healthcare expansion. The Wall Street Journal
A report by Philips Healthcare indicates that 89% of U.S. healthcare leaders say they are currently heavily investing in telehealth, though many expect to shift gears toward artificial intelligence in the future. Healthcare IT News
The report found that healthcare was one of the industries most affected by tracked ransomware incidents in 2020, second only to education. Healthcare IT News
Note: Some of the articles linked in this newsletter may be behind paywalls that need a subscription.
In this podcast, Paddy Padmanabhan shares his thoughts on the state of AI in healthcare, what’s working today (think administrative functions), and what may still be a ways off (think complex cancer diagnostics). Podcast Recording
A session on ‘Digital maturity and digital transformation priorities in U.S. healthcare’ by Paddy Padmanabhan. Session Recording
Damo Consulting Thought Leadership and Research
A compilation of our thought leadership over the last quarter that provides insights on digital transformation trends in healthcare and help tools to embark on a successful transformation journey. Blog
Damo Consulting’s ICEA™ framework guides health systems and technology firms on competitive assessment and partner selection strategies. This paper will help you find out how you can use the framework to categorize the technology vendors and evaluate each vendor within the categories. White Paper
The right technology applications can turn the COVID-19 vaccination program into a game-changer for the healthcare industry. Blog
Damo Consulting launches DigiM™, a digital maturity model and an online self-assessment tool for health systems. With this first-of-its-kind maturity assessment tool, health systems can benchmark their digital transformation programs against peer health systems at an enterprise level. Press Release