Health AI startups are seeing rapid growth according to a report by Bessemer Venture Partners. The report highlights that AI software services in healthcare are reaching $10 million in annual revenue at a much faster pace compared to other sectors in health tech. It takes AI companies an average of 2.5 years to hit the $10 million mark, while traditional health care software companies take six years and tech-enabled clinical services companies take three years. The data is based on a study of 20 AI companies in the health tech space. This quick growth is attributed to the urgency from buyers to test and adopt AI solutions.
General Catalyst, a venture capital giant, has also made significant investments in health care, allocating $750 million to “health assurance” as part of a new fund. The company has been actively investing in innovative health care ideas, with notable portfolio companies including Commure, Transcarent, and Hippocratic. General Catalyst was also a key investor in Livongo, a diabetes management company that was acquired for $18 billion by Teladoc.
Change Healthcare breach notifications are causing concern as some individuals are only now receiving notifications about a ransomware attack that occurred in February. The delay in notifications is raising questions about cybersecurity practices in the health care industry. Change Healthcare, a third-party company that processes insurance claims, is responsible for informing healthcare providers about data breaches, rather than the individuals affected. UnitedHealth Group, Change Healthcare’s parent company, has confirmed that the cyberattack affected 100 million people and is working to notify them as quickly as possible.
In a promising development, a retina implant by Science Corporation has shown positive results in restoring vision for individuals with severe vision loss. The Prima System, which includes a camera mounted on glasses and a pocketable computer, has allowed trial participants to read text and recognize playing cards despite being legally blind. The implant stimulates the retina by gathering infrared light from the camera. The study enrolled 38 participants, and after twelve months of use, participants showed significant improvement in vision.
Walmart has announced plans to offer same-day pharmacy delivery in 49 states by the end of January, following Amazon’s expansion of the same service. Define Ventures, an early-stage venture capital firm, has added former Humana CEO Bruce Broussard as a partner, signaling a strategic move in the health care investment space.
The American Medical Association has approved updates to remote monitoring codes that will take effect in 2026, allowing doctors to bill for supplying devices and management services related to monitoring. The FDA has named Michelle Tarver as the new director of the Center for Devices and Radiological Health, showcasing a focus on medical devices and AI tools in healthcare. The agency also announced the upcoming inaugural meeting of the Digital Health Advisory Committee to discuss generative AI-enabled medical devices. FDA Chief Robert Califf hinted at using AI tools to detect cheating in clinical trials, emphasizing the agency’s commitment to leveraging technology for regulatory purposes.
