In this episode of Second Opinion, Christina Farr, Stephen Klasko and Jessica Beegle, discuss the persistent challenges in healthcare despite technological advancements. They explore the integration of AI, the struggle with outdated systems, and the need for aligning incentives to drive meaningful change.

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LINKS:
SAIL Conference (Symposium on Artificial Intelligence for Learning Health Systems): https://sail.health/
General Catalyst: https://www.generalcatalyst.com/
THL Partners: https://thl.com/

Christina Farr's Second Opinion Newsletter: https://secondopinion.media/

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FOLLOW:
https://www.linkedin.com/in/sklasko/
https://www.linkedin.com/in/jessicabeegle/
https://www.linkedin.com/in/christinafarr/

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HIGHLIGHTS FROM THE EPISODE:
• Despite 15 years of technological advancement, the industry still struggles with basic issues like API integrations, data silos, and delayed billing systems.
• Healthcare has "Star Wars technology" for individual patients but operates with a "Fred Flintstone" delivery system due to misaligned incentives.
• Large tech companies and health systems are finally starting to work together more effectively, translating between Silicon Valley innovation and frontline healthcare delivery.
• Many health systems operate with disparate EHR systems, making it difficult to implement modern AI solutions without proper data infrastructure.
• The core problem isn't technology but rather that people's salaries often depend on maintaining inefficient systems.
• Successful AI implementations include mental health prediction tools, clinical trial optimization, and OR scheduling that added 100 new surgeries in one month.
• The industry faces commoditization with hundreds of point solutions at conferences, making it difficult to identify truly valuable innovations.
• Similar to how it took 50 years for doctors and nurses to work together effectively, healthcare now needs to learn how physicians and AI can collaborate.
• Successful AI adoption requires framing tools as augmentation rather than replacement, focusing on removing administrative burdens from clinical work.
• Effective implementation involves focusing on the 65% of physicians in the middle (between early adopters and resisters) rather than extremes.
• Health systems operating with thin margins or losses need AI solutions that demonstrate clear ROI within 12 months, not just satisfaction metrics.
• The industry is moving away from point solutions toward consolidated platforms that address multiple problems simultaneously.
• Leading health systems are seeking equity partnerships with technology companies rather than just being customers.
• The authors are writing a book about bridging the gap between Silicon Valley tech culture and healthcare delivery.

#439 - Andrea Lowell