- Investors and startups are eager to incorporate AI into the healthcare industry.
- But even at the height of AI innovation in healthcare, there is a serious lack of regulation in the space.
- A new survey has found that the majority of health systems have no policy to govern the use of AI.
As healthcare startups take the lead in creating artificial intelligence products to sell to hospitals, a new report suggests that many health systems don’t yet have policies in place to support the tech.
In a survey of 34 US health systems leaders, only 16 percent reported system-wide policies for AI use and data access. And while some leaders noted that there are broad guidelines in place. The same applies to AI, the majority – 65% – said they have no policy for AI.
The survey, conducted in October and November by the Center for Connected Medicine at UPMC and KLAS Research with health systems of various sizes, points to disruptions in healthcare as more companies build AI-powered software and They sell
Healthcare has historically lagged behind other sectors in adopting new technologies, although events such as the COVID-19 pandemic have occasionally forced the industry. However, investors and doctors alike are getting excited about AI’s potential to make healthcare delivery more efficient, reduce burnout among medical professionals, and improve patient outcomes. .
Still, many healthcare leaders aren’t jumping on the AI bandwagon just yet. Some health system leaders said they haven’t developed policies because the industry is in the early stages of adopting AI. Others said they were waiting for federal regulations on AI before issuing their own guidelines.
While the Food and Drug Administration has developed AI guidelines for medical device manufacturers, the agency has not provided an overarching framework for evaluating or adopting AI in healthcare. It is unlikely to be offered anytime soon. FDA Commissioner Robert Calf said in January that the agency doesn’t have the resources to keep up with ever-changing technologies.
The way forward for healthcare AI startups
Even as the public sector struggles to figure out how to manage AI in healthcare, many startups hope to use the tech to solve the industry’s biggest problems. will use Venture investors are also bullish about the market.
Amid a labor crisis and rising levels of burnout that are driving some providers out of health care, many hospitals are feeling pressure on their profit margins. Medical scribe startups — which typically use AI to record patient-doctor conversations and make notes in a patient’s electronic medical record — have received attention from investors and health systems alike. They offer the potential to streamline administrative tasks and reduce burnout.
Abridge, which sells AI-powered software to simplify clinical documentation and is working with the University of Pittsburgh Medical Center and University of Kansas Health, is in talks to raise at least $50 million in venture funding. is doing, Business Insider reported in February. The startup is competing to steal market share from Microsoft’s Nuance with medical scribe startups like Ambiance Healthcare and Nabla — which have already raised cash this year.
Nuance, for its part, is the dominant player in the space, claiming to provide its AI-powered software to 77% of US hospitals.
Many health system leaders surveyed by KLAS expressed enthusiasm about AI software for medical documentation. This can be a major factor limiting the depth of integration of startups with electronic health record systems. With its long-standing partnership with Epic, Microsoft has a head start in this area. 70 percent of health system leaders surveyed by KLAS said their organizations planned to adopt AI software integrated with their EHRs.
Industry watchers say we’re heading into a critical phase for AI in healthcare, one in which we’ll find out which startups rise and fall. “Every major health system is piloting one or two of these, so the next 18 months or so will be a sorting out of these players,” said Brian Roberts, a partner at VC firm Venrock.