In 2020, telemedicine company Teladoc acquired remote patient monitoring company Livongo for a record $18.5 billion, creating a $38 billion entity. Today, the combined company is worth less than a tenth of that.Rebecca Mitchell, who spent years as a product leader at both companies, reveals how this landmark healthcare deal fell short of expectations despite strong underlying products, and what we can learn from it.We also get her insights on the need for physician innovators, and how she came to co-found Scrub Capital.We cover:💻 The rise of physicians in product management roles at digital health companies💰 The untold "body and internal organs" story of the Livongo-Teladoc merger🩺 How incorporating clinician expertise leads to better healthcare products💼 Scrub Capital's approach to leveraging 700+ clinicians for smarter healthcare investing🤝 Why healthcare innovators should support rather than criticize each other🏆 Critical lessons for future healthcare M&AAbout our guests:Rebecca Mitchell began her career in global health as an academic researcher and Fulbright Fellow in maternal health. After receiving her medical degree from UCSF, she served as the medical officer for innovation at HHS before spending a decade in product roles at startups, including Livongo and Teladoc. Rebecca now leads Scrub Capital, an early-stage fund that incorporates the expertise of over 700 clinicians, founders, and operators to invest in healthcare companies.—🙏 If you're enjoying the show, we would so appreciate it if you left us a review!—📍 Connect with us:Heart of Healthcare websiteTikTok (NEW!)LinkedInTwitterSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Startup capital accelerator and venture capital firm Y Combinator has a long history of backing healthcare startups, with a particular focus on technical founders tackling difficult problems. In this episode, YC partners Jared Friedman and Ankit Gupta share their insights on healthcare investment, the transformative potential of AI, and why they believe young, tactical founders will continue to disrupt the healthcare industry despite its challenges.We cover:🏥 YC's approach to healthcare investing over the years⚕️ How AI has a 10x faster adoption curve than anything else we've seen💻 The potential for AI to automate healthcare's administrative burdens and provide universal access to medical knowledge🌍 The opportunity to bring primary care to billions who currently lack access🔄 Why an outsider's perspective can be valuable when rebuilding healthcare systems🚫 How patient privacy regulations might be hindering healthcare innovation—About our guests:Jared Friedman is Managing Director, Software and Group Partner at YC. He was co-founder of Scribd, which was funded by Y Combinator in 2006 and grew to be one of the top 100 sites on the web. Jared previously worked at a pioneering AI company and studied computer science at Harvard.Ankit Gupta is a Visiting Partner at Y Combinator and former Co-Founder and CTO of Reverie Labs, a small molecule therapeutics company that leverages machine learning to develop oncology treatments. Ankit led the team through its acquisition by Ginkgo Bioworks in February 2024. Ankit studied computer science at Harvard.—🙏 Thanks to Flexpa for sponsoring this episode. Flexpa is refactoring healthcare. Connect to 300+ health plans through a single, secure integration to access patient-consented, identified claims data instantly.—📍 Connect with us:Heart of Healthcare websiteLinkedInTwitterSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

This month, healthcare news highlights include a $5/month medication subscription that boosts adherence and lowers costs for patients. A surgeon publicly calls out UnitedHealthcare over patient care issues, sparking debate on insurance practices. The increase of microplastics in our brains is alarming, raising health concerns. Louisiana's vaccination promotion cuts stir discussions about public health trust. Lastly, a Super Bowl ad critiques the healthcare system and sheds light on the complexities of GLP-1 medication access and pricing.

Mike Pykosz, co-founder of Oak Street Health, shares his unconventional journey from aspiring doctor to healthcare entrepreneur. He discusses the challenges of scaling an 'unprofitable' care model and emphasizes focusing on patient outcomes over profits. Pykosz highlights the critical role of co-founders in creating a shared vision while reflecting on the complexities of taking a company public during COVID. He also addresses the current state of value-based care and the lessons learned in transforming healthcare delivery.

In this conversation, Emi Gal, the Founder and CEO of Ezra, a pioneering AI healthcare company, discusses the contentious role of full-body MRIs in early cancer detection. He explains how these scans could transform preventative care despite challenges like high costs and limited insurance coverage. Emi dives into the technology behind these MRIs, including AI enhancements that improve imaging and report accuracy. He also compares MRIs to other diagnostics and advocates for their potential to save lives through early detection, especially for those with a family history of cancer.

Thomas Goetz, a journalist and entrepreneur, co-founded Building H to address corporate health accountability. He discusses how many products prioritize profits over wellness, making healthy choices tough for Americans. Goetz introduces a corporate health index aimed at evaluating companies' impact on consumer health. He highlights successful models like Pokémon Go that encourage healthier behavior. The conversation emphasizes the need for businesses to integrate health metrics into their models and the potential of public benefit corporations to lead this shift.

2025 brings both challenges and innovation in healthcare. The sobering aftermath of a CEO's murder looms over UnitedHealth. Technology plays a crucial role in crisis management with the Watch Duty app, aiding Californians during wildfires. The FDA proposes new health initiatives, while concerns rise about healthcare consolidation. Investing in women's health shows a promising economic return, spotlighting the urgent need for funding and support in this vital area. The intersection of climate change and public health poses significant risks that cannot be ignored.

Dr. Vikas Saini, President of the Lown Institute and a clinical cardiologist, dives into the shocking world of healthcare profiteering. He discusses the annual Shkreli Awards, spotlighting cases like a Texas school selling deceased body parts and an oncologist's harmful practices. The conversation also touches on the controversial rise of unnecessary infant procedures and the role of private equity in bankrupting community hospitals. Through these alarming examples, Dr. Saini reveals critical insights about the ethical dilemmas and future of the American healthcare system.

Andrew Hedin and Morgan Cheatham from Bessemer Venture Partners share their insights on the future of healthcare innovation. They discuss the evolving implications of Individual Coverage Health Reimbursement Arrangements for Obamacare and how shifting employment dynamics will impact health insurance. The duo delves into the role of AI in home healthcare, improving caregiver support, and enhancing family interactions with aging relatives. Optimism shines through as they highlight emerging therapies, new payment models, and the exciting potential for startups by 2025.

D.A. Wallach, a venture capitalist at Time BioVentures and former frontman of Chester French, dives into the murky waters of healthcare ethics. He draws fascinating parallels between music and medicine, questioning outdated titles like 'doctor' and advocating for AI's role in patient care. With a focus on the need for a universal, evidence-based standard of care, he critiques the current profit-driven systems and urges a reevaluation of healthcare relationships. Wallach's insights promise a provocative peek into a future where compassion meets innovation.