- Investors and startups are keen to incorporate AI into the healthcare industry.
- However, despite the boom in AI innovation in healthcare, there is a significant lack of regulation in this area.
- A new study finds that the majority of health systems do not have policies in place to govern the use of AI.
As healthcare startups head first into developing artificial intelligence products to sell to hospitals, a new report suggests many health systems still don’t have policies to support the technology. .
In a survey of 34 U.S. health system leaders, only 16% reported having system-wide policies regarding AI use and data access. Some leaders also noted that they are establishing broader guidelines; This also applies to AI, with a majority (65%) saying they have no policy at all regarding AI.
The survey, conducted in October and November by UPMC’s Connected Medicine Center and KLAS Research among health systems of various sizes, shows that as more companies develop and sell AI-powered software, is a nod to the obstacles faced by
Healthcare has historically been slower to adopt new technology than other sectors, but events like the COVID-19 pandemic sometimes force the industry to respond. there was. But investors and physicians alike are excited about AI’s potential to make healthcare delivery more efficient, reduce burnout for healthcare professionals, and improve patient outcomes.
Still, many healthcare leaders have yet to jump on the AI bandwagon. Some health system leaders said they have not developed policies because the industry is in the early stages of AI adoption. Some said they were waiting for federal regulations on AI before issuing their own guidelines.
The Food and Drug Administration has developed AI guidelines for medical device manufacturers but does not provide a broader framework for implementing or evaluating AI in healthcare. It’s not likely to be available anytime soon. FDA Commissioner Robert Califf said in January that the agency does not have the resources to oversee ever-changing technology.
The road ahead for healthcare AI startups
While the public sector struggles with how to regulate AI in healthcare, many startups are hoping to use the technology to solve some of the industry’s biggest problems. Venture investors are also bullish on the market.
Many hospitals are feeling pressure on profit margins as a labor crisis and rising levels of burnout drive some healthcare workers out of medicine. Medical scribe startups (which typically use AI to record patient-doctor conversations and create notes in patients’ electronic medical records) are getting a lot of attention from both investors and health systems. . These can speed up administrative tasks and reduce burnout.
Abridge, which sells AI-powered software that facilitates clinical documentation and works with the University of Pittsburgh Medical Center and Kansas Health University, is in talks to raise at least $50 million in venture funding, Business Insider reports. Reported in February. The startup is competing with medical writing startups like Ambience Healthcare and Nabla (which have already cashed in this year) to take market share from Microsoft’s Nuance.
Nuance, on the other hand, is a leading company in this space, claiming to provide AI-powered software to 77% of U.S. hospitals.
Many health system leaders surveyed by KLAS expressed excitement about AI software for clinical documentation. A major limiting factor may be the depth of integration between startups and electronic health record systems. Microsoft has an advantage in this area due to its long-standing partnership with Epic. 70% of health system leaders surveyed by KLAS said their organization plans to implement AI software integrated with their EHR.
Industry watchers say this is a critical phase for AI in healthcare, and will reveal which startups will rise and which will fall. “Every major health system is piloting one or two of these, so we’re going to be sorting through these players over the next 18 months or so,” said Brian Roberts, a partner at venture capital firm Venrock. It will be,” he said.
