AI Startups’ ROI Reckoning: What 4 VCs Say Matters Now
Healthcare AI customers are demanding clear, measurable ROI before they scale adoption. Here, four investors discussed how the healthcare AI startups are adapting to this new market dynamic.
Healthcare AI customers are demanding clear, measurable ROI before they scale adoption. Here, four investors discussed how the healthcare AI startups are adapting to this new market dynamic.
Health data company Health Gorilla filed a motion to dismiss a lawsuit from Epic and several healthcare providers alleging inappropriate access to nearly 300,000 patient records. The case highlights ongoing questions about governance and standards for national health data sharing, with Health Gorilla arguing the dispute should be handled through interoperability networks’ internal processes rather than in federal court.
February has seen a slew of executive hires, promotions and layoffs across the healthcare industry. For instance, the CDC, Nabla and symplr named new executives. There were also layoffs at organizations including Walgreens, Cigna and Merck.
Ratnakar Lavu, Elevance Health’s chief digital information officer, said the company is using AI to streamline approvals, claims processing and member support while keeping denials under human review.
About 31,000 Kaiser Permanente workers ended a four-week strike after reaching a tentative agreement that includes measures to address chronic understaffing and wage increases. The full contract has not yet been ratified.
During a recent interview at the ViVE conference in Los Angeles, Oak HC/FT Partner Vig Chandramouli shared four key trends shaping the health tech startup market, from underinvested labor management, pricing risks and the influence of Epic on long-term deals.
The Department of Justice and the state of Ohio filed an antitrust lawsuit against OhioHealth this week, alleging the health system used “all-or-nothing” contracts that force insurers to include all of its hospitals and physicians. The case highlights federal and state scrutiny of hospital consolidation and restrictive contracting practices — with potential implications for payers, patients and healthcare markets across the country.
As hundreds of rural hospitals face the risk of closure, healthcare leaders warn that the fallout extends far beyond patient outcomes. During a panel at ViVE in Los Angeles, healthcare leaders outlined how access to care underpins the economic stability of rural America.
Since adopting Arintra’s AI platform for medical coding in 2023, Mercyhealth has seen a 5.1% rise in revenue and a 50% decline in its days in accounts receivable. The AI-powered platform automates coding, spots documentation gaps and generates claims tailored to specific payers.
Danaher is acquiring Masimo in a $10 billion deal aimed at expanding its diagnostics portfolio and deepening its presence in acute care settings. The move reflects a broader industry shift toward consolidation and integrated care, as large healthcare companies seek scale and more continuous clinical data inside hospitals.
Health informatics leaders at NYU Langone Health think fully autonomous clinical AI is coming in the next five years or so, with algorithms soon able to manage routine tasks like blood pressure medication titration and diabetic retinopathy screening without human oversight. They argue automation is not just about efficiency, but also a practical and necessary solution to workforce shortages and system inefficiencies.
Anterior raised $40 million to expand its AI platform that automates administrative clinical work for health plans. The system can approve care in minutes rather than weeks, aiming to reduce costs and ease the workload for clinicians and payer staff.
Telepsychiatry provider Talkiatry has raised a $210 million Series D round led by Perceptive Advisors, bringing its total funding to more than $400 million. CEO Robert Krayn said the company is focused on scaling its clinician-employed model and improving outcomes as competition intensifies across behavioral health and virtual care.
Mount Sinai Health System is betting on Microsoft’s Dragon Copilot as its ambient scribing tool of choice, a decision that followed competitive tests against rival vendors Abridge and Suki. Lisa Stump, Mount Sinai’s chief digital information officer, noted that the health system has been transparent with Microsoft that their partnership may change given Epic’s launch of a built-in AI charting tool earlier this month.
Health advocate network Solace Health gained unicorn status after closing a $130 million Series C funding round. The startup’s advocates help with tasks like scheduling appointments, finding in-network providers, understanding insurance coverage and bills, and coordinating care across multiple clinicians. And they actually handle much of the work on a patient’s behalf, rather than simply telling patients what steps to take next.