/ en Fri, 25 Apr 2025 22:47:31 -0500 Tue, 22 Apr 25 06:15:00 -0500 /aha-center-health-innovation-market-scan/2025-04-22-how-unleash-power-health-related-social-needs-data <div class="container"><div class="row"><div class="col-md-8"><img src="/sites/default/files/inline-images/How-to-Unleash-the-Power-of-Health-Related-Social-Needs-Data_0.png" data-entity-uuid="721ea50f-f258-434c-98ff-41f6690b032f" data-entity-type="file" alt="How to Unleash the Power of Health-Related Social Needs Data. Trailblazers report. Driving the Drivers: How hospitals and health systems can leverage technology and workflow optimization to address health-related social needs. Download the report." width="100%" height="100%"><p>Capturing health-related social needs (HRSN) data effectively and efficiently helps provider organizations leverage these data to meet the Quadruple Aim objectives: enhancing the patient experience, improving population health, reducing costs and improving the work life of health care providers.</p><p>Connecting patients with the resources they need to experience better health outcomes is a vital part of the HRSN screening process. With the right technology and resources, hospitals and health systems can identify inefficiencies and close gaps that could challenge the successful conclusion of that journey.</p><p>A new AHA Market Scan Trailblazers report, <a href="/aha-center-health-innovation-market-scan/2025-04-21-driving-drivers">“Driving the Drivers,”</a> explores how providers can leverage technology and workflow optimization to improve HRSN screening and connect patients with resources to address their health-related social needs.</p><h2>Personalize Care Connections</h2><p>Deploying enterprise technology that scales across the entire health system can connect patients with the right social network programs and resources and aid in tracking low-risk, rising-risk and high-risk populations. Key benefits of this approach include:</p><ul><li><strong>Send and track closed-loop referrals from start to finish to see whether patients obtained services.</strong></li><li><strong>Share personalized resource lists with patients, giving them easy access to the support they need.</strong></li><li><strong>Find and share tailored resources that meet each patient’s unique care needs.</strong></li></ul><p>By integrating HRSN data into electronic health records (EHRs), providers can identify patterns and trends at scale across communities that may not be immediately evident when considering individual medical data alone.</p><p>Overall, EHR and HRSN data integration support a holistic approach to health care. This empowers organizations across the care continuum to address population health challenges at a systemic level. By recognizing and responding to HRSN efficiently, proactively and at scale, providers can reduce health care costs and better manage population health outcomes.</p><h2>Standardize HRSN Data Management</h2><p>New Mexico-based Presbyterian Healthcare Services (PHS) has standardized its approach to automating HRSN screening, reaping multifold benefits in the process.</p><p>Toni Grinstead, health equity consultant and senior program manager for community health, oversees Presbyterian’s initiatives to address social drivers of health, including an automated health-related social needs screening workflow. Leigh Caswell, vice president for community and health equity, oversees the network’s community health worker team and its social needs screening and referral work.</p><p>Before automating the HRSN screening process, Grinstead and Caswell describe the health system’s approach as “scattershot.”</p><p>Some of PHS’ clinic sites still used paper, rather than their EHR tool, to screen patients. That created a twofold data entry problem. Clinicians or support staff sometimes would enter data inaccurately into the EHR system or not at all if paper screens went missing. Other challenges included the lack of standardized workflows to screen all patients across all settings and the lack of integrated screening results into the EHR system and each patient’s EHR.</p><h2>Harness the Power of HRSN Data</h2><p>With PHS conducting more than 1.5 million HRSN screenings annually across nine hospitals, 40 primary or specialty clinics and five urgent care centers, effectively managing these data became critically important.</p><p>In early 2024, PHS migrated to an automated approach to managing HRSN screening data. Three systems — HRSN screening, EHR and portal — now work in concert to power the HRSN screening process as part of routine health care. This approach eliminated paper screenings, standardized screening workflows across care sites and integrated patients’ HRSN screening data into their EHRs and patient portals.</p><p>“Having technology support our [HRSN] efforts is really powerful. We know a lot more about what our communities need. We know a lot more about what resources exist in our communities. Now we can use those data to influence policy and investment at the state level and at the local level,” Caswell says.</p><p>Patients now can answer HRSN screening questions through the patient portal before scheduled visits, eliminating that responsibility from busy clinicians and clinical support staff. Screening workflows now are standard across all sites of care.</p><p>PHS asks 12 questions in eight HRSN domains: housing, food, transportation, utilities, interpersonal violence, alcohol use, substance use and tobacco use. Screening results now appear directly in patients’ records, enabling the care team to determine if patients are experiencing a social need. If so, the system automatically generates a list of recommended resources in patients’ after-visit summaries directly within the EHR.</p><p>“Because everything is interoperable, the technology allows us to screen patients every six months, and every person who interacts with that patient has access to those data,” Grinstead says. “Patients [and caregivers] don’t have to answer the same questions over and over again during an episode of care. That improves the patient experience and the caregiver experience.”</p><p><a href="/aha-center-health-innovation-market-scan/2025-04-21-driving-drivers"><strong>Download the full Trailblazers report</strong></a> to learn more about the power of automating the HRSN screening and data management process and explore how Yale New Haven Health has improved its workflow efficiency.</p></div><div class="col-md-4"><p><a href="/center" title="Visit the AHA Center for Health Innovation landing page."><img src="/sites/default/files/inline-images/logo-aha-innovation-center-color-sm.jpg" data-entity-uuid="7ade6b12-de98-4d0b-965f-a7c99d9463c5" alt="AHA Center for Health Innovation logo" width="721" height="130" data-entity- type="file" class="align-center"></a></p><p><a href="/center/form/innovation-subscription"><img src="/sites/default/files/2019-04/Market_Scan_Call_Out_360x300.png" data-entity-uuid data-entity-type alt width="360" height="300"></a></p></div></div></div>.field_featured_image { position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } .featured-image{ position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } h2 { color: #9d2235; } Tue, 22 Apr 2025 06:15:00 -0500 AHA Center for Health Innovation Market Scan /aha-center-health-innovation-market-scan/2025-04-22-rapidly-advancing-multiagent-ai-apps-could-reshape-operations-efficiency <div class="container"><div class="row"><div class="col-md-8"><img src="/sites/default/files/inline-images/Rapidly-Advancing-Multiagent-AI-Apps-Could-Reshape-Operations-Efficiency.png" data-entity-uuid="78a574f0-a506-4bf8-bce7-bcc34cf956e7" data-entity-type="file" alt="Rapidly Advancing Multiagent AI Apps Could Reshape Operations Efficiency. Artificial Intelligence (AI) head surrounded by medical icons." width="1200" height="677"><p>Early adopters in health care have begun to capitalize on artificial intelligence (AI) advancements by moving from chatbots to single-agent and multiagent systems working across multiple functions.</p><p>AI agents hold transformative potential to accelerate the evolution of health care by augmenting decision-making, personalizing care and automating repetitive tasks, Biju Samkutty, chief operating officer of international and enterprise automation at Mayo Clinic in Rochester, Minnesota, recently noted in an <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/healthcare-enters-ai-agent-era/" target="_blank" title="Becker's Hospital Review: Healthcare enters AI agent era">interview</a>.</p><p>These agents can analyze large amounts of patient data, including medical histories, imaging and genetic profiles, to provide clinicians with real-time, evidence-based insights.</p><p>Beyond clinical applications, AI agents can optimize health care operations, improving efficiency and accessibility. Google Cloud, for example, recently launched a couple of <a href="https://cloud.google.com/blog/products/ai-machine-learning/build-and-manage-multi-system-agents-with-vertex-ai?e=48754805" target="_blank" title="Google Cloud: Vertex AI offers new ways to build and manage multi-agent systems">new tools</a> and services in its Vertex AI platform. The launches include an agent development kit and Agent2Agent protocol that enable a multiagent ecosystem. Google's cloud division also unveiled enhancements to Agentspace, a platform announced in December that provides AI-enabled search capabilities and agents to enterprise customers.</p><p>The tech giant also announced its Agent Garden, a hub where organizations can access pre-built AI agents.</p><p>AI purpose-built agents are rapidly advancing, Aashima Gupta, global director of health care strategy and solutions at Google Cloud, recently told Fierce Healthcare.</p><p>Google sees AI agents as intelligent collaborators that can streamline operations, increase efficiency and improve patient care. Multiagent AI systems are seen as the next frontier in health care.</p><p>Even as many providers are still honing their AI strategies, Hackensack Meridian Health in New Jersey is implementing AI agents and search tools to cut the time spent on administrative tasks, simplify workflows and improve patient care.</p><p>Hackensack Meridian foresees using agents to improve the patient scheduling experience, though the system isn’t fully there yet, Sameer Sethi, the health system’s chief AI and insights officer, noted in a <a href="https://www.healthcaredive.com/news/google-cloud-ai-agentic-tools/744902/" title="Heathcare Dive: Google Cloud expands AI agent tools for healthcare" target="">Healthcare Dive interview</a>.</p><p>He envisions agents managing complex scheduling situations, such as when a patient needs an appointment with an orthopedic doctor, a ride to the office, an available wheelchair or assistance picking up medications. While the health system offers those services, it typically would take separate calls to arrange them — while agents could collaborate to handle those requests.</p><p>“That is how we think about agentic space,” Sethi says. “We are orchestrating different activities and different technologies to all work together.”</p></div><div class="col-md-4"><p><a href="/center" title="Visit the AHA Center for Health Innovation landing page."><img src="/sites/default/files/inline-images/logo-aha-innovation-center-color-sm.jpg" data-entity-uuid="7ade6b12-de98-4d0b-965f-a7c99d9463c5" alt="AHA Center for Health Innovation logo" width="721" height="130" data-entity- type="file" class="align-center"></a></p><p><a href="/center/form/innovation-subscription"><img src="/sites/default/files/2019-04/Market_Scan_Call_Out_360x300.png" data-entity-uuid data-entity-type alt width="360" height="300"></a></p></div></div></div>.field_featured_image { position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } .featured-image{ position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } h2 { color: #9d2235; } Tue, 22 Apr 2025 06:00:00 -0500 AHA Center for Health Innovation Market Scan /2025-04-15-3-ways-ai-could-aid-behavioral-health-screenings <div class="container"><div class="row"><div class="col-md-8"><img src="/sites/default/files/inline-images/3-Ways-AI-Could-Aid-Behavioral-Health-Screenings.png" data-entity-uuid="2e87914e-4e41-4bf3-b5bc-6aeed9b0307f" data-entity-type="file" alt="3 Ways AI Could Aid Behavioral Health Screenings. A woman suffering from behavioral health issues is assisted by an artificial intelligence (AI) bot." width="1200" height="751"><p>Using artificial intelligence (AI) to supplement traditional behavioral health screenings is gaining momentum in primary care.</p><p>Some areas being explored include: predicting risks among adolescents that they could experience mental illness; reducing readmissions by screening patients and treating if they test positive for opioid-use disorder; and implementing AI therapy chatbots to supplement cognitive therapy.</p><p>The tools typically are designed to address common challenges providers face, such as improving efficiency and workforce shortages. And while many of these applications can extend access to care, they are not a replacement for providers. Here are several recent developments that caught our eye.</p><h2><span><img src="/sites/default/files/inline-images/Brain.png" data-entity-uuid="e427e822-33d7-4e9b-a979-b438d55372ee" data-entity-type="file" alt="Predicting Risks, Potential Causes of Adolescent Mental Illness, Brain." width="75" height="98" class="align-left">1</span> <span>|</span> Predicting Risks, Potential Causes of Adolescent Mental Illness</h2><p>An <a href="https://corporate.dukehealth.org/news/ai-model-predicts-risks-and-potential-causes-adolescent-mental-illness" target="_blank" title="Duke Health: AI Model Predicts Risks and Potential Causes of Adolescent Mental Illness">AI model</a>, developed by Duke Health researchers, accurately predicted when adolescents were at high risk for future serious mental health issues before symptoms become severe.</p><p>Unlike prior models that primarily rely on existing symptoms, the AI model identified underlying causes, such as sleep disturbances and family conflict, as indicators to prescribe preventive interventions. The capability to identify early warning signs and proactively intervene with prophylactic treatments could greatly expand access to mental health services, with assessments and care available through primary care providers, researchers said.</p><p>The AI model could be used in primary care settings, enabling pediatricians and other providers to know immediately whether the child in front of them is at high risk and empowering them to intervene before symptoms escalate, notes Jonathan Posner, M.D., professor of psychiatry and behavioral sciences at Duke and senior author of a <a href="https://www.nature.com/articles/s41591-025-03560-7" target="_blank" title="Nature Medicine: Prediction of mental health risk in adolescents">study published recently in Nature Medicine</a>.</p><p>Posner and colleagues analyzed psychosocial and neurobiological factors associated with mental illness using data from an ongoing study that conducted psychosocial and brain development assessments of more than 11,000 children over five years.</p><p>Using AI, the researchers built a neural network — a model that mimics brain connections — to predict which children would transition from lower to higher psychiatric risk within a year. That model then is used to score a questionnaire that ranks responses from the patient or parent about current behaviors, feelings and symptoms, to predict the likelihood of an escalation.</p><h3>Takeaway</h3><p>The model was 84% accurate in identifying patients in the study whose illness escalated within the next year, the study found. Duke researchers analyzed an alternative model that identified the potential mechanisms that might lead to or trigger worsening mental illness. With an accuracy rate of 75%, the new modeling system’s ability to identify underlying causes can alert doctors and families to potential interventions, researchers conclude.</p><h2><span><img src="/sites/default/files/inline-images/Opioids.png" data-entity-uuid="67dde24e-842c-45f8-8349-63c8a0f78794" data-entity-type="file" alt="Reducing Readmissions by Screening for Opioid-Use Disorder. Opioid pills and capsules." width="75" height="98" class="align-left">2</span> <span>|</span> Reducing Readmissions by Screening for Opioid-Use Disorder</h2><p>The National Institutes of Health April 3 released a <a href="https://www.nih.gov/news-events/news-releases/ai-screening-opioid-use-disorder-associated-fewer-hospital-readmissions" target="_blank" title="National Institutes of Health (NIH): AI screening for opioid use disorder associated with fewer hospital readmissions">study</a> that found that an AI intelligence screening tool was as effective as health care providers in identifying hospitalized adults at risk for opioid-use disorder and referring them to inpatient addiction specialists.</p><p>When compared with patients who received consultations with providers, patients screened by AI had 47% lower odds of hospital readmission within 30 days after their initial discharge, saving nearly $109,000 in care costs.</p><p>The study, published in Nature Medicine, reports the results of a completed clinical trial, demonstrating AI’s potential to affect patient outcomes in real-world health care settings. The study suggests that investment in AI may be a promising strategy specifically for health systems seeking to increase access to addiction treatment while improving efficiencies and saving costs.</p><p>The AI screener was built to recognize patterns in data, like how our brains process visual information. It analyzed information within all the documentation available in the electronic health records in real time, such as clinical notes and medical history, to identify features and patterns associated with opioid-use disorder. Upon identification, the system issued an alert to providers when they opened patients’ medical charts with recommendations to order addiction medicine consultation and to monitor and treat withdrawal symptoms.</p><h3>Takeaway</h3><p>The trial found that AI-prompted consultation was as effective as provider-initiated consultation, ensuring no decrease in quality while offering a more scalable and automated approach. Specifically, the study showed that 1.51% of hospitalized adults received an addiction medicine consultation when health care professionals used the AI screening tool, compared with 1.35% without the assistance of the AI tool. Additionally, the AI screener was associated with fewer 30-day readmissions, with approximately 8% of hospitalized adults in the AI screening group being readmitted to the hospital, compared with 14% in the traditional provider-led group.</p><h2><span><img src="/sites/default/files/inline-images/Chatbot.png" data-entity-uuid="63b600b4-552e-4fe7-a435-766d68b69d71" data-entity-type="file" alt="Deploying AI Therapy Chatbots vs. Standard Cognitive Therapy. Chatbot." width="75" height="98" class="align-left">3</span> <span>|</span> Deploying AI Therapy Chatbots vs. Standard Cognitive Therapy</h2><p>Generative AI (GenAI) chatbots hold promise for building highly personalized, effective mental health treatments at scale, while also addressing user engagement and retention issues common among digital therapeutics, notes a recent <a href="https://ai.nejm.org/doi/full/10.1056/AIoa2400802" target="_blank" title="NEJM AI: Randomized Trial of a Generative AI Chatbot for Mental Health Treatment">NEJM AI study</a>.</p><p>The randomized-control trial study of Therabot by Dartmouth College researchers found “significantly greater reductions of symptoms” for major depressive disorder, generalized anxiety disorder and those at high risk for eating disorders.</p><p>Trial participants felt they could trust the therapy chatbot to a degree that was comparable to working with a real therapist, notes a press release from Dartmouth.</p><h3>Takeaway</h3><p>Fine-tuned GenAI chatbots offer a feasible approach to delivering personalized mental health interventions at scale, but further research with larger clinical samples is needed to confirm their effectiveness and generalizability, the study notes.</p><p>Michael Heinz, M.D., the study’s first author and an assistant professor of psychiatry at the Dartmouth College Center for Technology and Behavioral Health and the Geisel School of Medicine, said that “no generative AI agent is ready to operate fully autonomously in mental health.” He highlighted, “We still need to better understand and quantify the risks associated with generative AI used in mental health contexts.”</p><hr><h2>Learn More</h2><p>Visit the <a href="/advocacy/access-and-health-coverage/access-behavioral-health">AHA Behavioral Health website</a> to access a wealth of resources, including reports on child and adolescent mental health, rural behavioral health issues and more. Also, read the AHA Insights report <a href="/center/emerging-issues/market-insights/ai/building-and-implementing-artificial-intelligence-action-plan-health-care">“Building and Implementing an Artificial Intelligence Action Plan for Health Care”</a> for information on how AI can transform your operations.</p></div><div class="col-md-4"><p><a href="/center" title="Visit the AHA Center for Health Innovation landing page."><img src="/sites/default/files/inline-images/logo-aha-innovation-center-color-sm.jpg" data-entity-uuid="7ade6b12-de98-4d0b-965f-a7c99d9463c5" alt="AHA Center for Health Innovation logo" width="721" height="130" data-entity- type="file" class="align-center"></a></p><p><a href="/center/form/innovation-subscription"><img src="/sites/default/files/2019-04/Market_Scan_Call_Out_360x300.png" data-entity-uuid data-entity-type alt width="360" height="300"></a></p></div></div></div>.field_featured_image { position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } .featured-image{ position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } h2 { color: #9d2235; } h3 { color: #9d2235; } Tue, 15 Apr 2025 06:15:00 -0500 AHA Center for Health Innovation Market Scan /aha-center-health-innovation-market-scan/2025-04-15-future-hospital-data-could-be-simple-asking-question <div class="container"><div class="row"><div class="col-md-8"><p><img src="/sites/default/files/inline-images/The-Future-of-Hospital-Data-Could-Be-as-Simple-as-Asking-a-Question.png" data-entity-uuid="b35df2e0-00da-4ee8-8f2a-f38e0b87f9db" data-entity-type="file" alt="The Future of Hospital Data Could Be as Simple as Asking a Question. A user of AHA DataQuery AI builds a report from hospital data included in the platform." width="1200" height="569"></p><p>In a field as complex and vital as health care, access to information isn't just a matter of convenience — it’s often the difference between reactive decisions and forward-looking strategy. Yet for decades, even the best data come with a caveat: It takes expertise, time and tools to extract meaning from the numbers.</p><p>Now, with the emergence of generative AI, that dynamic is shifting. <a href="https://www.ahadata.com/dataquery-ai" target="_blank" title="AHA DataQuery AI landing page">AHA DataQuery AI™</a> builds on the ���������� Association’s <a href="https://www.ahadata.com/aha-annual-survey-database" target="_blank" title="AHA Data & Insights: AHA Annual Survey Database landing page">annual survey data</a>, offering insights into more than 6,200 hospitals and 400 health systems. With more than 1,300 data points, the database covers a broad spectrum of information, including hospital demographics, service-line offerings, staffing models and population health services. These data are rigorously collected and verified, ensuring that they remain the most reliable resource for understanding the nation’s hospitals.</p><p>AHA DataQuery AI transforms how users can engage with this robust data set. Instead of combing through files or assembling pivot tables, users simply can type a question — about service availability, leadership changes, technology adoption or workforce staffing — and receive precise, source-verified answers. It can compare hospital activity across regions, visualize trends in telehealth or staffing models and reveal patterns to guide proactive decisions.</p><p>But perhaps more notable than the speed is the transparency. Each response is accompanied by full access to the underlying data and the methodology used to generate the results. This ensures not just speed, but also confidence in the quality and reliability of the insights.</p><p>The data remain the same — the AHA’s deeply vetted survey data, updated annually, augmented with Centers for Medicare & Medicaid Services cost reports. What’s different is how easily the data are now accessible to the people who need it most: those planning services, shaping policy or preparing for the future of health care.</p><p><a href="https://www.ahadata.com/dataquery-ai" target="_blank" title="AHA Data & Insights: AHA DataQuery AI landing page">Learn more and explore how it works.</a></p></div><div class="col-md-4"><p><a href="/center" title="Visit the AHA Center for Health Innovation landing page."><img src="/sites/default/files/inline-images/logo-aha-innovation-center-color-sm.jpg" data-entity-uuid="7ade6b12-de98-4d0b-965f-a7c99d9463c5" alt="AHA Center for Health Innovation logo" width="721" height="130" data-entity- type="file" class="align-center"></a></p><p><a href="/center/form/innovation-subscription"><img src="/sites/default/files/2019-04/Market_Scan_Call_Out_360x300.png" data-entity-uuid data-entity-type alt width="360" height="300"></a></p></div></div></div>.field_featured_image { position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } .featured-image{ position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } h2 { color: #9d2235; } Tue, 15 Apr 2025 06:00:00 -0500 AHA Center for Health Innovation Market Scan /aha-center-health-innovation-market-scan/2025-04-08-reimagined-ceo-leading-health-care-its-next-era <div class="container"><div class="row"><div class="col-md-8"><img src="/sites/default/files/inline-images/The-Reimagined-CEO-Leading-Health-Care-into-Its-Next-Era.png" data-entity-uuid="479cd75f-fccd-4fbe-abe6-c31d78f9cbb9" data-entity-type="file" alt="The Reimagined CEO: Leading Health Care into Its Next Era. A CEO's head in profile with the brain containing gears connected to outside gears supplying all the data being input into the brain." width="1200" height="646"><p>Health care CEOs are leading in a time unlike any other in recent memory — where complexity is the norm and the expectations are extraordinary. The role, once steeped in operational oversight and incremental improvement, has evolved rapidly into a multifaceted, future-facing leadership challenge. From managing rapid consolidation to engaging political stakeholders, from cultural stewardship to digital transformation, the modern CEO’s mandate is not just to steer the ship — but to redesign the vessel while in motion.</p><p>According to WittKieffer’s 2025 report <a href="https://wittkieffer.com/insights/healthcare-ceo-reimagined" target="_blank" title="WittKeiffer: Healthcare CEO Reimagined: Leading Healthcare’s Next Chapter">“Healthcare CEO Reimagined,”</a> the traditional CEO archetype is being redefined fundamentally. Drawing on extensive interviews with top health system leaders, the report highlights a set of paradigm shifts and leadership tenets for CEOs to consider and offers a road map for navigating health care’s accelerating transformation.</p><h2><span>1</span> <span>|</span> <span>From Visionary to Agile Architect</span></h2><p>Strategic agility now defines effective leadership, according to the report. While a long-term vision remains important, CEOs increasingly are required to flex their strategies in real time — responding to both evolving market conditions and internal dynamics. “We must be willing to act quickly, learn fast and be comfortable with occasional missteps,” said Tom Gessel, CEO of Oregon-based Asante health system, in the report. Leaders are expected to lead transformative initiatives while maintaining operational discipline and rallying stakeholders around a shared sense of purpose.</p><h2><span>2</span> <span>|</span> <span>Scaling Strategically, Not Just Structurally</span></h2><p>Health care consolidation has created vast, complex systems that span geographies and service lines. Yet, as CEOs like Dennis Murphy of IU Health note, growth without focus can lead to inertia. “Goal setting is not just about driving the organization forward; it is about decluttering it from negative inertia,” Murphy said.</p><p>The real challenge lies in balancing scale with agility, according to the WittKieffer report. CEOs must align systemwide advantages — like technology investments and operational efficiencies — with local relevance. “Essentiality” — becoming an indispensable provider in a given community — emerges as a critical goal. Tailored strategies that account for regional needs, consumer preferences and competitive dynamics no longer are optional but are essential for long-term viability, the report concluded.</p><h2><span>3</span> <span>|</span> <span>Culture as a CEO’s Most Enduring Legacy</span></h2><p>Perhaps no responsibility looms larger than cultural leadership, according to the report. “Culture starts with the CEO,” Christopher Howard, CEO of Sharp HealthCare, told WittKieffer. “My most significant impact is dedicating myself to our organization’s culture.”</p><p>Today’s CEOs must navigate cultural tensions — accountability vs. mission, excellence vs. agility, scale vs. identity. These aren’t opposites to resolve but dynamics to balance. As organizations grow, CEOs increasingly are held accountable not just for preserving culture, but also for strengthening and spreading it across their networks, the report states.</p><p>Michael Slubowski, CEO of Trinity Health in Michigan, envisions a culture where “120,000 team members improve the care experience without waiting to be asked or having to be told.” That kind of empowerment requires relentless communication, trust-building and authenticity from the top.</p><h2><span>4</span> <span>|</span> <span>Developing the Next Generation</span></h2><p>Leadership development is no longer a human relations function; it’s a CEO imperative. “Building a strong, competent team is the CEO’s most essential skill,” said Brian Erling, M.D., president and CEO of Renown Health. The WittKieffer report underscored that high-performing leaders build succession pipelines, mentor emerging talent and foster environments that balance challenge with support.</p><p>The report also highlights the need for strategic succession planning and skill set expansion, both of which help leaders bridge the gap between legacy systems and emerging models. The best CEOs create what the report calls “gentle pushes and soft landings,” enabling continuous growth without burnout.</p><p> </p><h2><span>5</span> <span>|</span> <span>Mastering External Engagement</span></h2><p>In an increasingly politicized and interconnected world, external engagement has shifted from a “nice-to-have” to a strategic imperative. WittKieffer suggests that CEOs must build coalitions, not just manage operations. This includes sustained advocacy, community partnerships and brand leadership.</p><p>“Advocacy work now demands priority status as one of the ‘big boulders’ that must come first,” the report notes. CEOs must be visible in their communities, present with policymakers and trusted by stakeholders — internally and externally. Their reputations now are inseparable from that of the institutions they lead.</p><h2><span>6</span> <span>| </span><span>Essential Tenets: What Sets Great CEOs Apart</span></h2><p>WittKieffer distills the most impactful leadership traits into six essential tenets:</p><ul><li><strong>Vision across multiple horizons</strong> — balancing near-term needs with long-term foresight.</li><li><strong>Catalytic decision-making</strong> — making bold decisions amid ambiguity.</li><li><strong>Adaptability and resilience</strong> — maintaining focus while embracing change.</li><li><strong>Self-mastery and a learning mindset</strong> — committing to personal growth and reflection.</li><li><strong>Emotional intelligence</strong> — leading with humility, empathy and listening.</li><li><strong>Galvanizing communication</strong> — inspiring action through clarity and consistency.</li></ul><p>The CEO role never has been more complex or more vital to the future of health care. As leaders confront a world of accelerating change, those who thrive will be the ones who adapt most effectively, lead most authentically and empower their organizations at every level, according to the report.</p><p>In the words of Advocate Health CEO Eugene A. Woods quoted in the report, the goal is to “culturally unleash a fearless curiosity and unshakable optimism” as the antidote to uncertainty.</p></div><div class="col-md-4"><p><a href="/center" title="Visit the AHA Center for Health Innovation landing page."><img src="/sites/default/files/inline-images/logo-aha-innovation-center-color-sm.jpg" data-entity-uuid="7ade6b12-de98-4d0b-965f-a7c99d9463c5" alt="AHA Center for Health Innovation logo" width="721" height="130" data-entity- type="file" class="align-center"></a></p><p><a href="/center/form/innovation-subscription"><img src="/sites/default/files/2019-04/Market_Scan_Call_Out_360x300.png" data-entity-uuid data-entity-type alt width="360" height="300"></a></p></div></div></div>.field_featured_image { position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } .featured-image{ position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } h2 { color: #9d2235; } Tue, 08 Apr 2025 06:11:50 -0500 AHA Center for Health Innovation Market Scan /aha-center-health-innovation-market-scan/2025-04-08-fda-clears-apple-watch-powered-platform-seizure-monitoring <div class="container"><div class="row"><div class="col-md-8"><img src="/sites/default/files/inline-images/The-FDA-Clears-Apple-Watch-Powered-Platform-for-Seizure-Monitoring.png" data-entity-uuid="9da944d2-03f7-4aea-a13c-79bffa21d7fc" data-entity-type="file" alt="The FDA Clears Apple Watch-Powered Platform for Seizure Monitoring. An EpiWatch monitoring a brain for seizures." width="1200" height="646"><p>In a significant step forward for wearable health tech, <a href="https://www.epiwatch.com/" target="_blank" title="EpiWatch homepage">EpiWatch</a> — a Johns Hopkins Medicine spinout — has received <a href="https://www.accessdata.fda.gov/scripts/cdrh/cfdocs/cfpmn/pmn.cfm?ID=K243515" target="_blank" title="FDA: EpiWatch Monitoring System 510(k) Premarket Notification">FDA 510(k) premarket clearance</a> for its seizure detection platform that runs on the Apple Watch. The platform is designed to continuously monitor for tonic-clonic (grand mal) seizures, a form of epilepsy that causes full-body convulsions and loss of consciousness.</p><p>EpiWatch’s Apple Watch-based app goes beyond detection, offering medication reminders, tracking potential seizure triggers, mental health screening and seizure logging. It's an important advance in remote patient monitoring for individuals living with epilepsy and is part of a long-term collaboration with Johns Hopkins Medicine, powered by Apple’s <a href="https://www.researchandcare.org/researchkit/" target="_blank" title="ResearchKit landing page">ResearchKit</a>, Apple’s open-source software.</p><p>“This marks a significant step forward in fulfilling our mission to empower all people living with epilepsy,” said Teresa Prego, EpiWatch CEO. The company plans a limited market release to collaborate with clinicians and users and refine the platform’s support and education features.</p><p>Wearables increasingly are gaining FDA attention as tools for proactive health monitoring. In February, Google received clearance for an <a href="https://blog.google/feed/pixel-watch-3-loss-of-pulse-detection-fda/" target="_blank" title="Google Blog: Loss of Pulse Detection has received U.S. FDA clearance, and is now available on Pixel Watch 3.">AI-based loss-of-pulse detection feature</a> on the Pixel Watch 3. The Apple Watch Series 10 recently earned FDA clearance for <a href="https://www.apple.com/newsroom/2024/09/apple-introduces-groundbreaking-health-features/" target="_blank" title="Apple Newsroom: Apple introduces groundbreaking health features to support conditions impacting billions of people">sleep apnea detection</a>, while its AirPods Pro 2 include <a href="https://www.apple.com/newsroom/2024/09/apple-introduces-groundbreaking-health-features/" target="_blank" title="Apple Newsroom: Apple introduces groundbreaking health features to support conditions impacting billions of people">machine learning-powered hearing aid functionality</a> — following the FDA’s 2022 rule enabling over-the-counter hearing aids.</p><p>For hospital leaders, these developments signal accelerating momentum behind wearable tech as a companion to clinical care, enabling more proactive, personalized health management and potentially easing the burden on emergency services and chronic disease management.</p></div><div class="col-md-4"><p><a href="/center" title="Visit the AHA Center for Health Innovation landing page."><img src="/sites/default/files/inline-images/logo-aha-innovation-center-color-sm.jpg" data-entity-uuid="7ade6b12-de98-4d0b-965f-a7c99d9463c5" alt="AHA Center for Health Innovation logo" width="721" height="130" data-entity- type="file" class="align-center"></a></p><p><a href="/center/form/innovation-subscription"><img src="/sites/default/files/2019-04/Market_Scan_Call_Out_360x300.png" data-entity-uuid data-entity-type alt width="360" height="300"></a></p></div></div></div>.field_featured_image { position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } .featured-image{ position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } h2 { color: #9d2235; } Tue, 08 Apr 2025 06:00:00 -0500 AHA Center for Health Innovation Market Scan /aha-center-health-innovation-market-scan/2025-04-01-innovative-rural-hospitals-think-beyond-tradition-improve-access-care <div class="container"><div class="row"><div class="col-md-8"><img src="/sites/default/files/inline-images/Innovative-Rural-Hospitals-Think-Beyond-Tradition-to-Improve-Access-to-Care.png" data-entity-uuid="e778c7ba-7645-47e7-92fc-159ef664d4dd" data-entity-type="file" alt="Innovative Rural Hospitals Think Beyond Tradition to Improve Access to Care. Drones fly over fields in a rural community in Virginia to deliver lifesaving medications with a computer monitor in the foreground displaying radiology images that AI is helping radiologists provide faster diagnoses." width="100%" height="100%"><h2>AI Helps to Improve Speed of Radiology Reviews</h2><p>Last year, <a href="https://www.chiefhealthcareexecutive.com/view/how-mercy-is-using-ai-to-improve-patient-care" target="_blank" title="Chief Healthcare Executive: https://www.chiefhealthcareexecutive.com/view/how-mercy-is-using-ai-to-improve-patient-care">Mercy</a> — a large health system serving many rural communities across Missouri and surrounding states — expanded its use of artificial intelligence (AI) to improve patient access and outcomes in radiology. By integrating Aidoc, an AI-powered clinical decision-support platform, into its imaging workflow, Mercy now can provide faster diagnosis of life-threatening conditions such as pulmonary embolisms and brain bleeds across its network of more than 50 hospitals, many of them in rural or underserved areas.</p><p>The AI platform reviews scans in real time and automatically flags critical findings for radiologists and emergency teams. This reduces turnaround times for high-risk cases and helps to ensure that patients in rural facilities receive the same rapid care available in larger urban centers. According to Mercy leaders, the AI implementation has enhanced clinical efficiency and supported more timely interventions — particularly in emergency departments (EDs) where staffing can be stretched thinly.</p><h3>Key Takeaway</h3><p>Artificial intelligence can be a vital force multiplier for rural hospitals. AI helps to improve diagnostic speed, enhance care team coordination and ensures that patients with high-acuity conditions receive timely attention.</p><h2>Drones Deliver Lifesaving Medications in Virginia</h2><p>In partnership with Zipline, a logistics drone company, Wise County, Virginia, launched a pilot program with <a href="https://cardinalnews.org/2024/12/26/nearly-a-decade-after-historic-drone-test-in-wise-county-drone-scare-shows-need-for-drone-identification/" target="_blank" title="Nearly a decade after historic drone test in Wise County, drone scare shows need for drone identification">Cardinal News: Remote Area Medical</a> to deliver essential medications to remote communities. Using autonomous drones, the health department now can transport insulin, antibiotics and other critical supplies across rugged terrain in less than 30 minutes — a journey that otherwise might take hours by car.</p><p>The program, which began during the COVID-19 pandemic, has grown into a model for how unmanned aerial vehicles can support rural health equity. Because the drones are not hindered by poor roads, weather or distance, they help to ensure continuity of care for patients who manage chronic conditions or need urgent medications.</p><h3>Key Takeaway</h3><p>Explore logistics innovations like drones to reduce delays and transportation costs in rural care delivery. Investing in or partnering with drone logistics providers can help eliminate last-mile delivery challenges, particularly for pharmacy and lab services, and enhance health equity in hard-to-reach communities.</p><h2>Nurse-Run Telehealth Hubs in North Dakota</h2><p><a href="https://www.trinity-health.org/newsroom/press-releases/trinity-health-revolutionizes-nursing-practice-through-virtual-connected" target="_blank" title="Trinity Health: Trinity Health Revolutionizes Nursing Practice Through a TogetherTeam Virtual Connected Care™ Delivery Model">Trinity Health</a> in Minot, North Dakota, operates mobile nurse-run telehealth hubs in converted vans that travel to underserved towns across the state. Equipped with diagnostic tools, mobile internet and tablets connecting to remote physicians, these vans serve as a lifeline for patients in areas that lack nearby clinics.</p><p>Staffed by advanced practice nurses, the vans provide on-site assessments, collect vitals, administer vaccines and facilitate virtual consults with physicians at Trinity’s main facilities. This hybrid care model bridges the gap between virtual and hands-on services.</p><p>The program has improved appointment adherence and helped to identify serious conditions sooner, reducing ED usage and supporting chronic disease management.</p><h3>Key Takeaway</h3><p>Mobile, nurse-led clinics are a scalable solution to rural provider shortages. Leveraging nurses and physician extenders in mobile units allows systems to reach new populations, increase care continuity and reduce unnecessary ED visits at a relatively low capital cost.</p><h2>Digital Front Doors in Rural Ohio</h2><p>Memorial Health System in Marietta, Ohio, accelerated its digital transformation during the COVID-19 pandemic by implementing a <a href="https://www.trinity-health.org/newsroom/press-releases/trinity-health-revolutionizes-nursing-practice-through-virtual-connected" target="_blank" title="Trinity Health: Trinity Health Revolutionizes Nursing Practice Through a TogetherTeam Virtual Connected Care™ Delivery Model">comprehensive patient intake platform</a>. This initiative enabled patients to complete appointment scheduling, registration and billing processes remotely, enhancing convenience and safety.</p><p>The digital system streamlined front-end operations, reducing the need for manual data entry and minimizing lobby congestion. Patients now can check in and complete necessary forms from their homes, decreasing errors and enhancing privacy. This transformation not only improved operational efficiency, but also strengthened infection control measures by reducing in-person interactions. Memorial Health System's experience underscores the importance of digital solutions in enhancing patient engagement and streamlining health care delivery, particularly in rural settings where access to care can be challenging.</p><h3>Key Takeaway</h3><p>Prioritize digital inclusion alongside digital transformation. Implementing a digital front-door strategy can significantly enhance patient access, satisfaction and operational efficiency in rural health care settings.</p><h2>The Future of Access: Innovation with Intent</h2><p>Whether it’s drones delivering medications or nurses driving virtual care on wheels, rural hospitals are innovating to close the gap between providers and patients. These creative solutions are designed to keep patient needs, geographic barriers and economic realities top of mind.</p><p>As workforce shortages, financial constraints and care disparities persist in rural America, hospital leaders must think beyond traditional infrastructure. Strategic investment in technology — paired with thoughtful implementation — can transform how care is delivered and experienced, regardless of ZIP code.</p></div><div class="col-md-4"><p><a href="/center" title="Visit the AHA Center for Health Innovation landing page."><img src="/sites/default/files/inline-images/logo-aha-innovation-center-color-sm.jpg" data-entity-uuid="7ade6b12-de98-4d0b-965f-a7c99d9463c5" alt="AHA Center for Health Innovation logo" width="721" height="130" data-entity- type="file" class="align-center"></a></p><p><a href="/center/form/innovation-subscription"><img src="/sites/default/files/2019-04/Market_Scan_Call_Out_360x300.png" data-entity-uuid data-entity-type alt width="360" height="300"></a></p></div></div></div>.field_featured_image { position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } .featured-image{ position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } h2 { color: #9d2235; } Tue, 01 Apr 2025 06:00:00 -0500 AHA Center for Health Innovation Market Scan /aha-center-health-innovation-market-scan/2025-03-25-top-4-takeaways-new-aha-safety-insights-report <div class="container"><div class="row"><div class="col-md-8"><img src="/sites/default/files/inline-images/Top-4-Takeaways-from-New-AHA-Safety-Insights-Report.png" data-entity-uuid="0033e72b-2c55-4754-ac0a-facda1a20ca4" data-entity-type="file" alt="Top 4 Takeaways from New AHA Safety Insights Report. The cover of the AHA "Insights Report: Improvement in the Safety Culture Linked to Better Patient and Staff Outcomes" overlayed on an image of a surgery being performed by four clinicians." width="1200" height="677"><p>Over the past six months, the AHA and its data partners have produced two comprehensive reports that document the progress hospitals and health systems continue to make on key patient safety measures.</p><p>In September 2024, the AHA partnered with Vizient on a <a href="/guidesreports/2024-09-12-new-analysis-shows-hospitals-performance-key-patient-safety-measures-surpassing-pre-pandemic-levels">report</a> showing that numerous outcome measures of health care quality and patient safety — including decreasing risk of mortality and lower levels of health care-associated infections — are improving while hospitals care for more patients with significant health needs.</p><p>Meanwhile, the newly released Insights Report, <a href="/guidesreports/2025-03-11-improvement-safety-culture-linked-better-patient-and-staff-outcomes">“Improvement in Safety Culture Linked to Better Patient and Staff Outcomes,”</a> highlights progress on additional outcome measures of patient safety including some that reflect the ongoing work led by nurses to protect patients.</p><p>The latest report, created in collaboration between the AHA and Press Ganey, shows clear improvement on the experience of both patients and the health care workforce. It also shows improvements in safety culture, a leading indicator of better safety outcomes and better experiences for patients and staff.</p><h2>4 Takeaways from the New Data</h2><h3><span>1</span> <span>|</span> 4 key quality and safety areas are improving.</h3><p>Hospitals are performing at or better than prepandemic levels on multiple quality and safety measures, according to the March report. The findings are based on the Press Ganey National Database Quality Indicators reflecting quality measures reported by more than 25,000 units across 2,430 acute care inpatient hospitals. The data show improvements from their mid-pandemic levels in four key measurement areas:</p><ul><li>Catheter-associated urinary tract infections</li><li>Central line-associated bloodstream infections.</li><li>Patient falls that result in harm.</li><li>The number of patients who develop hospital-acquired pressure injuries such as bedsores.</li></ul><h3><span>2</span> <span>|</span> Patient experience and safety improvements are being noticed.</h3><p>The report’s data, based on responses from 13 million patients, show steady gains in their experience of care and their perceived safety of care after a drop during the COVID-19 pandemic. Drivers of these improvements include patient perception of good teamwork among staff, attention and responsiveness to patient needs and communication among patients and clinical care team members.</p><h3><span>3</span> <span>|</span> Patients are attuned to team dynamics and interpersonal competencies.</h3><p>One key factor driving improvements in patients’ perceptions of care is the teamwork of their caregivers. Across clinical areas — inpatient and outpatient, surgical and medical, emergency and scheduled — the single largest driver of a patient’s likelihood to recommend a hospital, facility or provider is the perception of how well their care team members work together, the report notes. Better teamwork has long been shown to drive better outcomes.</p><p>Similarly, patients who perceive that their care was safe are 2.5 to 3 times more likely to recommend their hospital to others. Their perceptions of safety are based on their own interactions with hospital team members, their observations regarding practices such as handwashing and cleanliness, and how they see team members interacting with one another to deliver care.</p><h3><span>4</span> <span>|</span> Workforce experience and well-being are improving.</h3><p>As the enormous strain of the COVID-19 pandemic recedes, the health care workforce is beginning to rebound as well. Press Ganey data from 1.7 million health care workforce members show a rise in their resiliency and perceived work experiences. A resilient workforce is essential in health care, given the complex and high stakes nature of the work.</p><p>Hospitals that score higher on team member engagement surveys also see higher patient experience scores reported from patients. This correlation is becoming more pronounced every year, with the top-performing quartile of hospitals on staff engagement in 2023 scoring in the 80th percentile on patients’ likelihood to recommend.</p><hr><h2>Learn More</h2><p>A key goal of the <a href="/aha-patient-safety-initiative">AHA’s Patient Safety Initiative</a> is to help hospitals and health systems improve their safety culture. Launched in 2023, the initiative catalyzes hospitals’ and health systems’ collective expertise and momentum for improvement and focuses on (1) safety culture, (2) identifying and addressing disparities in health care outcomes and (3) the workforce’s well-being.</p></div><div class="col-md-4"><p><a href="/center" title="Visit the AHA Center for Health Innovation landing page."><img src="/sites/default/files/inline-images/logo-aha-innovation-center-color-sm.jpg" data-entity-uuid="7ade6b12-de98-4d0b-965f-a7c99d9463c5" alt="AHA Center for Health Innovation logo" width="721" height="130" data-entity- type="file" class="align-center"></a></p><p><a href="/center/form/innovation-subscription"><img src="/sites/default/files/2019-04/Market_Scan_Call_Out_360x300.png" data-entity-uuid data-entity-type alt width="360" height="300"></a></p></div></div></div>.field_featured_image { position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } .featured-image{ position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } h2 { color: #9d2235; } Tue, 25 Mar 2025 06:15:00 -0500 AHA Center for Health Innovation Market Scan /aha-center-health-innovation-market-scan/2025-03-25-generative-ai-market-health-care-gains-momentum <div class="container"><div class="row"><div class="col-md-8"><img src="/sites/default/files/inline-images/Generative-AI-Market-in-Health-Care-Gains-Momentum.png" data-entity-uuid="38d72b46-1ff8-419e-86c3-250e5045902b" data-entity-type="file" alt="Generative AI Market in Health Care Gains Momentum. A flowchart made of white tiles leading to Generative AI." width="1200" height="677"><p>Staffing shortages, rising costs, efforts to reduce administrative burden on clinicians and other factors are leading many health care providers to generative artificial intelligence (AI) solutions.</p><p>These solutions address providers’ concerns by boosting the speed and accuracy of key workflows, improving the efficiency of high-volume tasks while reducing the workload for overburdened staff, notes a recent <a href="https://www.cbinsights.com/research/generative-ai-healthcare-life-sciences-market-map/" target="_blank" title="CB Insights: The generative AI in healthcare and life sciences market map">CB Insights report</a>.</p><p>The health care field is responding positively to this potential. A recent Gradient Flow survey covering generative AI in health care revealed that 65% of respondents are actively considering or implementing generative AI solutions.</p><p>To identify market opportunities, CB Insights analyzed the landscape and mapped 87 health care and life sciences companies with generative AI products across 20 markets.</p><h2>3 Key Insights from the Report</h2><h3><span>1</span> <span>|</span> Investors and health systems are betting on generative AI to solve costly provider workflow inefficiencies.</h3><p>Clinical documentation startups secured four of health care’s five largest generative AI deals last year while simultaneously gaining significant commercial traction. For example, <a href="https://www.abridge.com/" target="_blank" title="Abridge homepage">Abridge</a> partnered with more than 12 health systems, including Mayo Clinic and Kaiser Permanente, while Ambience Healthcare worked with Alpine Physician Partners to reduce daily charting time by 74%, the report states.</p><p>Abridge completed the largest deal — a $150 million Series C round — and followed this with a $250 million Series D deal just last month. Abridge also established business relationships with more than a dozen health systems in 2024 alone, and it has continued to expand its network this year, working with Duke Health, UNC Health and Inova Health Systems so far.</p><h3><span>2</span> <span>|</span> Specialized AI models, powered by advanced clinical reasoning and domain-specific knowledge, demonstrate higher accuracy in health care workflows.</h3><p>Health care technology companies are taking an interest in this specialized approach to extract more accurate insights across their datasets and develop new features to help providers elevate their operational efficiency. For example, in February 2024, <a href="https://veradigm.com/" target="_blank" title="Veradigm homepage">Veradigm</a> announced that it would acquire health care LLM developer <a href="https://www.science.io/" target="_blank" title="ScienceIO homepage">ScienceIO</a> to gain intelligence from its own provider and patient data and, as a result, enhance AI features for its customers.</p><h3><span>3</span> <span>|</span> Drug development is poised to accelerate as generative AI discovery platforms secure major deals.</h3><p>Four of the top five generative AI deals in life sciences last year went to drug discovery startups, two of which are generative chemistry platforms (<a href="https://www.terraytx.com/" target="_blank" title="Terray Therapeutics homepage">Terray Therapeutics</a> and <a href="https://superluminalrx.com/" target="_blank" title="Superluminal Medicines homepage">Superluminal Medicines</a>). These platforms leverage generative AI to rapidly design new compounds and plan efficient synthetic routes, significantly speeding up the identification of viable drug candidates. This positions them as technological front-runners in the race to revolutionize drug discovery, the report notes.</p></div><div class="col-md-4"><p><a href="/center" title="Visit the AHA Center for Health Innovation landing page."><img src="/sites/default/files/inline-images/logo-aha-innovation-center-color-sm.jpg" data-entity-uuid="7ade6b12-de98-4d0b-965f-a7c99d9463c5" alt="AHA Center for Health Innovation logo" width="721" height="130" data-entity- type="file" class="align-center"></a></p><p><a href="/center/form/innovation-subscription"><img src="/sites/default/files/2019-04/Market_Scan_Call_Out_360x300.png" data-entity-uuid data-entity-type alt width="360" height="300"></a></p></div></div></div>.field_featured_image { position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } .featured-image{ position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } h2 { color: #9d2235; } Tue, 25 Mar 2025 06:00:00 -0500 AHA Center for Health Innovation Market Scan /aha-center-health-innovation-market-scan/2025-03-18-walgreens-move-go-private-4-key-takeaways <div class="container"><div class="row"><div class="col-md-8"><img src="/sites/default/files/inline-images/Walgreens-Move-to-Go-Private-4-Key-Takeaways.png" data-entity-uuid="b8db2af7-9c46-4fb3-8202-f3f09a78e324" data-entity-type="file" alt="Walgreens’ Move to Go Private: 4 Key Takeaways. A Walgreens logo in front of a stock market prices board." width="1200" height="751"><p>While financial and retail analysts continue to evaluate the implications of Walgreens Boots Alliance’s <a href="https://investor.walgreensbootsalliance.com/news-releases/news-release-details/walgreens-boots-alliance-enters-definitive-agreement-be-acquired" target="_blank" title="Walgreens Boots Alliance: Walgreens Boots Alliance Enters into Definitive Agreement to Be Acquired by Sycamore Partners">recent agreement</a> to be taken private by Sycamore Partners, many important questions loom.</p><ul><li>What will become of the retail pharmacy’s health care assets and its apparently rapidly dwindling aspirations as an outlet for primary care?</li><li>How will Walgreens’ huge national footprint change once the deal valued at nearly $24 billion is expected to close?</li><li>Can Sycamore Partners successfully reposition Walgreens for financial recovery, and what role does the private equity firm foresee as to the retailer’s future in health care?</li><li>Does Sycamore Partners have the capital needed to transform Walgreens into a serious and sustainable competitor in the pharmacy and health care services space against companies like CVS Health, Amazon and others?</li></ul><h2>4 Changes the Walgreens Sale Signals</h2><h3><span>1</span> <span>|</span> This may be the end of Walgreens’ direct role in primary care.</h3><p>Just five years after its first $1 billion investment in VillageMD (another $5.2 billion investment followed in 2021) and co-locating the primary care company’s outlets adjacent to some of its stores in the Houston area, Walgreens is ready to turn the page on this business.</p><p>At one time, Walgreens anticipated having more than 600 VillageMD locations, but that optimism quickly faded. Last April, the retailer announced plans to close 160 of the clinics. Attempts to find a buyer for VillageMD and its related businesses so far have been unsuccessful. Sycamore now will try to accelerate these efforts, analysts suggest.</p><p>Walgreens estimates that it could get as much as $3.4 billion from a VillageMD sale, but some believe that the business, which includes more than 345 locations and related businesses Village Medical, Summit Health and CityMD, is worth far less. A more realistic figure might be $1 billion, Sandeep Dahiya, academic director of the Business of Health Initiative at Georgetown University 's McDonough School of Business, told Modern Healthcare.</p><h3><span>2</span> <span>|</span> Significant downsizing could be coming.</h3><p>Walgreens is facing crushing debt of about $9 billion as well as opioid-related liabilities and other items that Sycamore had to account for in the total $23.7 billion price tag, the Wall Street Journal reports. Shedding underperforming stores and sharply downsizing nonessential management and personnel to reduce costs could follow, some analysts suggest. Selling off assets like VillageMD also could help with the turnaround effort as Sycamore and Walgreens focus on long-term growth opportunities.</p><h3><span>3</span> <span>|</span> This represents Walgreens’ opportunity for rebirth.</h3><p>Some analysts believe that Sycamore’s experience in retail will help Walgreens regain its footing and give it breathing space to sort through its business difficulties without the glare of the financial media. With the retailer being taken private, it won’t face some of the pressures of achieving quarter-to-quarter growth and can focus on driving long-term growth and improvements in its businesses before selling off some of them.</p><p>Having a multiyear hold period will allow Walgreens and Sycamore to emphasize and drive the business evolution, Howard Gutman, private equity strategy and coverage lead for MorganFranklin Consulting, noted in a recent interview. After that, they can make some significant changes and then realize the results through whatever route they think is best.</p><h3><span>4</span> <span>|</span> High debt level could impact turnaround.</h3><p>Based on financing commitments Walgreens disclosed in a <a href="https://www.sec.gov/Archives/edgar/data/1618921/000119312525050097/d935649ddefa14a.htm" target="_blank" title="SEC: Form 8-K Walgreens Boots Alliance, Inc.">March 10 filing with the Securities and Exchange Commission</a>, 83.4% of the financing for Sycamore’s buyout is debt, notes the Private Equity Stakeholder Project (PESP). This is more than double the average debt level (41%) used by private equity firms to acquire companies last year.</p><p>The PESP is a nonprofit watchdog organization focused on growing private equity and the broader private funds industry.</p><p>“The amount of debt in the Walgreens acquisition is concerning, in addition to Sycamore Partners pledging capital that it does not appear to have. This leveraged buyout tactic saddles private equity-owned companies with substantial debt, often draining resources that otherwise could be invested in innovation, workforce development or adapting to market changes,” notes a <a href="https://pestakeholder.org/news/sycamore-partners-to-finance-walgreens-buyout-with-83-debt/" target="_blank" title="Private Equity Stakeholder Project: Sycamore Partners to finance Walgreens buyout with 83% debt">report on the PESP website</a>.</p><p>Nevertheless, more than a dozen parties already lined up to provide financing, according to people familiar with the matter, the <a target="_blank" title="Wall Street Journal: Walgreens Goes From $100 Billion Health Giant to Private-Equity Salvage Project" rhef="https://www.wsj.com/business/retail/walgreens-private-equity-sale-rise-fall-42ac5db6">Wall Street Journal reported</a>.</p></div><div class="col-md-4"><p><a href="/center" title="Visit the AHA Center for Health Innovation landing page."><img src="/sites/default/files/inline-images/logo-aha-innovation-center-color-sm.jpg" data-entity-uuid="7ade6b12-de98-4d0b-965f-a7c99d9463c5" alt="AHA Center for Health Innovation logo" width="721" height="130" data-entity- type="file" class="align-center"></a></p><p><a href="/center/form/innovation-subscription"><img src="/sites/default/files/2019-04/Market_Scan_Call_Out_360x300.png" data-entity-uuid data-entity-type alt width="360" height="300"></a></p></div></div></div>.field_featured_image { position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } .featured-image{ position: absolute; overflow: hidden; clip: rect(0 0 0 0); height: 1px; width: 1px; margin: -1px; padding: 0; border: 0; } h2 { color: #9d2235; } Tue, 18 Mar 2025 06:15:00 -0500 AHA Center for Health Innovation Market Scan