The 41st yearly J.P. Morgan Health care Meeting wrapped up in San Francisco on Thursday subsequent a four-day routine packed with presentations from dozens of wellbeing systems, insurers, pharmaceutical makers and technological innovation businesses.
The 2023 meeting coated subject areas ranging from costs to general public coverage to patient treatment and discussions of what carries on to be a tumultuous period for the healthcare business.
In this article are 5 principal takeaways from the meeting.
1. Wellness units have to have to reduce charges
In a complicated economic environment, wellbeing system executives are generating expenditures a priority. Labor, which generally accounts for far more than fifty percent of bills, continue on to be the major issue as companies navigate wage inflation pushed by staffing shortages. Agreement labor investing is coming down but is predicted to stay elevated for months.
CommonSpirit Wellbeing comprehensive its approach for $500 million in value price savings in 2023, aspect of a four-yr, $2 billion performance-enhancement approach recognized when Catholic Well being Initiatives and Dignity Health put together to variety CommonSpirit in 2019. So significantly, the Chicago-centered nonprofit corporation has obtained about $1.3 billion of that aim by way of practices this sort of as vendor consolidation, service standardization and reassessment of its actual estate holdings.
2. Provider integration is a escalating priority
Integrating solutions will be important for health care companies this yr, executives stated. Wellbeing systems and insurers look at it as extended-time period discounts opportunity and a route towards better-good quality care.
Walgreens Boots Alliance is open up to additional acquisitions to diversify its solutions, CEO Rosalind Brewer said. Walgreens’ VillageMD shut an $8.9 billion offer to acquire Summit Well being-CityMD and programs to grow its multispecialty and urgent care functions. Afterwards this calendar year, Walgreens will fully purchase CareCentrix, an at-house care small business.
CVS Health and fitness CEO Karen Lynch claimed the corporation is in the marketplace for a principal treatment asset, while she did not address a Bloomberg Information report that CVS Health is concentrating on Chicago-dependent Oak Road Wellbeing, which plans to open 35 new clinics this yr.
The insurtech Clover Health is counting on at-property main care expert services to drive progress. “Household treatment is strategically wherever healthcare will be going toward in the upcoming few several years,” CEO Andrew Toy claimed.
3. Medicare Edge remains important to insurers
Well being insurance plan companies presenting at the conference noted blended results in their Medicare Gain firms but the lucrative, developing software continues to be a prime priority irrespective of modern effectiveness.
Centene CEO Sarah London described the firm’s Medicare Benefit progress as “soft” during open up enrollment for 2023. The insurer wants to enhance profitability by signing up extra dually eligible Medicare-Medicaid beneficiaries and by improving upon its star scores, which arrived in even worse than expected final calendar year.
Humana saw significantly improved success with Medicare Advantage and extra at least 625,000 new associates added throughout open enrollment, a 13.6{08cd930984ace14b54ef017cfb82c397b10f0f7d5e03e6413ad93bb8e636217f} boost. Cigna reported its Medicare Advantage membership grew in the large one-digit vary.
4. Tense price negotiations will proceed
Expect difficult discussions this yr as vendors search for approaches to lower expenses and insurers check out to avoid considerable reimbursement hikes. Economic uncertainty will even more complicate this dynamic. So will looming Medicaid eligibility redeterminations, which are anticipated to resume as soon as the COVID-19 community wellbeing unexpected emergency declaration expires and lead to thousands and thousands getting rid of positive aspects. Centene Chief Financial Officer Drew Asher said the firm expects to lose $8 billion in Medicaid earnings thanks to redeterminations, which include $4.5 billion this calendar year, and aims to transition Medicaid enrollees to other varieties of coverage.
5. Competitiveness heats up in wellness tech
The healthcare technology marketplace is increasing additional aggressive as vendors change toward digital platforms and digital equipment to improve individual treatment.
Teladoc Well being CEO Jason Gorevic expressed confidence in his telehealth firm’s situation relative to its opponents, which he said deficiency the scale necessary to achieve sturdy economical benefits. “There are a lot of virtual care organizations out there that are additional narrowly focused, more compact in scale and are nipping at the edges of one [software] answers,” Gorevic claimed.
Standard Catalyst CEO Hemant Taneja cautioned traders about a “tricky calendar year ahead” as digital health and fitness organizations have been forced to shift their focuses from earnings progress to profitability.
Synthetic intelligence proceeds generate fascination. GE Health care, which spun off from General Electrical on Jan. 4, wants to improve its AI and connected devices enterprise, CEO Peter Arduini stated.
Alex Kacik and Nona Tepper contributed to this story.

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On December 2, 2022, the American Physical Treatment Association
(APTA) released a statement relating to a latest
determination from UnitedHealthcare and its contractor, Kaia Overall health, to
stop advertising Kaia Health’s solutions as “actual physical
remedy” supplied that Kaia Health’s method does not
constantly include accredited actual physical therapists. As a end result,
digital health and fitness companies that current market by themselves as offering
bodily remedy ought to evaluate their advertising and shopper
communications to ascertain regardless of whether any revisions are demanded
pursuant to the APTA’s advice.
Track record 
The APTA and APTA North Carolina despatched a letter to UnitedHealthcare,
along with a criticism submitted with the North Carolina Board of
Actual physical Remedy Examiners, determining that the companies provided
as a result of Kaia Health’s application had been not overseen by a
accredited bodily therapist. UnitedHealthcare subsequently
acknowledged that Kaia Overall health and United Healthcare’s benefits
supervisor, Optum, used the phrase “physical therapy” in
its promoting resources and that all elements would be revised to
eliminate reference to physical remedy.
WHY IT Matters 
The APTA has continually held that actual physical therapy, both in
particular person or digitally, will have to be “carried out or directed only by
accredited bodily therapists.” The APTA has asked for that
actual physical treatment suppliers sign a pledge, which in section
acknowledges that the “bodily therapist assessment,
analysis, analysis, improvement of a administration system, and
intervention shall be represented and reimbursed as ‘physical
therapy’ only when carried out by a bodily therapist or when
selected interventions are performed by a physical therapist
assistant beneath the direction and supervision of a physical
therapist.” Quite a few electronic healthcare corporations have signed
onto the APTA’s pledge.
The grievance filed with the North Carolina Board of Actual physical
Therapy Examiners, alongside with the APTA’s letter to
UnitedHealthcare, are sturdy indicators that condition boards of
physical therapy and market teams are reviewing the marketing
and the scope of services made available by digital actual physical remedy
corporations, as effectively as companies who associate with virtual physical
therapy firms.
Companies featuring electronic or virtual actual physical therapy or
musculoskeletal solutions need to assessment their company descriptions
and promoting materials and evaluate no matter if any updating is
required—a task our healthcare team can assistance with. For
assistance or questions, be sure to achieve out to your typical McDermott
law firm or get hold of any of the authors of this write-up.
The information of this short article is meant to present a typical
manual to the issue make a difference. Professional information must be sought
about your precise situations.
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Looking to turn into a better artist? With so quite a few methods quickly out there online, it is easier than ever to choose your artwork to the subsequent amount. By harnessing the electric power of on the internet education, you can access courses taught by experts, learn new techniques and competencies, and refine your artistry in any medium you choose. In this short article, we’ll focus on the strategies on line education and learning can help you turn into a much better artist. Let us get started out.
Improved Schools
One of the important advantages of learning on the internet is that you can access much better academic possibilities. A lot of schools and universities supply superb programs in the arts, but they aren’t constantly out there around where you live. With on-line training, even so, you can consider classes from leading establishments no matter exactly where you are positioned. You can click on below to look at for the alternatives and techniques to sign up for. This provides an unprecedented chance to understand from some of the very best academics in the environment and gain important skills that will support progress your vocation.
When picking these universities, it is important to take into consideration the excellent of their classes and their track record. Make confident the selected school is accredited and delivers respected degrees or certificates. For instance, if you want to develop into a superior visible artist, glimpse for an on-line university that gives a degree or certification in artwork.
Variety of Courses
One more good gain of online education is the selection of courses available. No subject what medium you are fascinated in pursuing (portray, drawing, sculpting, and so on.), you can find courses personalized to your particular requires. Some classes go over the fundamental principles of artwork, this sort of as coloration idea, design ideas, and composition.
These programs give an excellent basis for additional innovative classes. In addition, you can uncover classes focusing on numerous artwork designs (abstract, impressionism, realism, and so on.) and techniques (oil painting, electronic artwork, and so forth.). By using gain of these classes, you can create a further knowledge of the mediums and procedures you are fascinated in and hone your artistic skills.
Entry to Authorities
By means of on the net education, you also acquire obtain to industry specialists. Numerous courses feature instructors who have a long time of experience in the arts. Not only do they give precious insight, but they can also give you suggestions on your perform and aid you create as an artist. For case in point, if you’re functioning in the direction of turning out to be a painter, your teacher may suggest ways to enhance your technique or offer guidelines for generating better compositions.
Besides, you can come across mentors on-line who will give you guidance and assistance you do the job via any difficulties you face in your creative journey. For occasion, if you are studying music, you can arrive at out to seasoned musicians who have gone via the same experiences you’re facing.
Overall flexibility
Studying on the internet is also exceptionally easy. You can study on your very own plan, that means you can find the time to observe and hone your craft even if you have a active lifetime. Furthermore, a lot of on the net courses enable you to go at your have pace, so you really do not have to fear about maintaining up with the relaxation of the class. You can only focus on mastering the substance and perfecting your techniques.
Furthermore, you can simply access your program supplies at any time. This signifies you can review subject areas any time you need, permitting you to retain much more information and development faster. Plus, lots of courses offer you resources outdoors of course (online video tutorials, examining elements, etcetera.) that can enable dietary supplement your studying.
Diminished Mastering Expenses
Finding out online can also help you save you revenue. You never have to get worried about the cost of transportation or buying textbooks because these are usually included in your system costs. Furthermore, numerous on-line universities present discounts and scholarships that can enormously cut down your tuition costs.
In addition to, you really do not have to pay back for components like canvases, paints, or other provides when you research on the internet. Most of your studying will be completed digitally, getting rid of the require for physical resources. So if you do not have the funds to purchase art provides, studying on the internet is a terrific alternative.
Networking Chances
Last but not least, learning on-line lets you to establish relationships with other pros in the artwork earth. You can hook up with men and women who share your pursuits and passion for art via message boards, dialogue boards, and social media networks. You can also locate artists and instructors from all all-around the world who will provide tips, response queries, and help you come across chances.
By getting gain of these networking opportunities, you can build significant associations and obtain precious perception that will aid you on your inventive journey. You will be making the most of tips and points you have under no circumstances considered of in advance of.
On the web training has helped lots of artists acquire the expertise and expertise they require to reach their plans. No matter if you are a starter or an expert artist, lots of courses and methods are available to help you come to be a better artist. With the proper steerage and perseverance, you can make great strides in your art profession. So really do not be reluctant to get benefit of on the net instruction today.
The facts contained in this write-up is for informational functions only and is not in any way supposed to substitute experienced assistance, healthcare care or assistance from your medical professional.
An additional business is protesting the state’s decision to award a multibillion-greenback contract to a competitor, alleging that the point out failed to perform an neutral analysis of bids to handle the North Carolina Point out Well being Plan. The state’s treasurer, having said that, states the procedure was fair.
UMR, a device of insurance company UnitedHealthcare, on Friday filed a protest with the state health and fitness approach. The group mentioned it and competitor Blue Cross Blue Protect of North Carolina could have saved the condition much more money than Aetna, the successful bidder. UnitedHealthcare executives now want the condition to reevaluate price proposals and rethink its decision.
The protest was filed a working day following the deal was protested by BCBSNC, which alleged that “limited details and arbitrary scoring” have been utilized to make the determination to pick out Aetna. BCBSNC, which has managed the contract for a long time, reported in its protest that it supplied “the most affordable administrative price of any bidder.”
UnitedHealthcare mentioned that it is subsidiary and BCBSNC taken care of a cost advantage of about 6{08cd930984ace14b54ef017cfb82c397b10f0f7d5e03e6413ad93bb8e636217f} over Aetna. It also projected that the agreement with Aetna would increase the wellness plan’s prices by $500 million.
Condition Treasurer Dale Folwell, whose office environment oversees the wellness insurance approach together with a board of trustees, has explained that the deal with Aetna, which operates from 2025 to 2027, would help you save the state about $140 million.
“The award was not made based mostly on the bid that was most useful and represented the ideal benefit to the point out,” UnitedHealthcare explained in its protest.
Folwell claimed in a statement Friday that he welcomed the prospect to explore and assessment the wellness plan’s contracting method.
“We formulated a method exactly where all get-togethers had a good possibility to earn the deal and we have a obligation to search for the finest economical value and member support for all those that teach, protect and serve as perfectly as taxpayers like them,” he mentioned.
Jim Bostian, Aetna’s North Carolina president, claimed in a assertion on Saturday that the organization is devoted to a seamless changeover for associates of the condition overall health strategy.
“We submitted a solid proposal affirming the State Overall health Plan’s commitment to significant-good quality and very affordable overall health benefits,” he said. “The persons who teach, protect and serve North Carolina ought to have a health and fitness gains administrator that prospects with consumer provider, excellent treatment and affordability, and we will provide it to them.”
Indiana Dwelling Republicans will rally guiding a selection of charges in the 2023 session that emphasize fiscal duty, grow Hoosiers’ obtain to health care and maximize perform-dependent finding out and faculty decision programs.
The House GOP are also contacting special emphasis to a invoice that seeks to authorize little one assist for expecting girls.
Home Speaker Todd Huston, R-Fishers, outlined his caucus’ priorities Thursday times after Senate Republicans unveiled their 2023 agenda. Both equally chambers agree minimizing history-higher health care expenses and guaranteeing audio, prudent spending of point out bucks is paramount.
But GOP lawmakers in the Senate left out any training topics from their precedence record this session. It also continues to be unclear if both chamber will help a proposal from Gov. Eric Holcomb to remove K-12 textbook and curricular service fees for all Hoosier pupils.
“We’re likely to spend about half the condition spending budget on education and learning,” Huston stated in the course of a information conference Thursday. “Where it goes and how it goes … I just want to make certain our caucus and our committee has an opportunity to weigh it all out.”
Dwelling Democrat Leader Phil GiaQuinta. Photograph from official web-site
Meanwhile, Residence Democratic Chief Phil GiaQuinta, of Fort Wayne, mentioned the Residence Republicans’ 2023 agenda adds up to the “same stale ideas” as in yrs previous.
“Over a 10 years of Republican coverage and underinvestment has still left our people today, our most important useful resource, with historic general public health and schooling crises,” GiaQuinta claimed in a assertion. “Those very same policies are not likely to guide us out of 10 years of wandering in the desert.”
Additional get the job done-dependent discovering — and even a lot more faculty choice
Proposed modifications to large faculty curricula are laid out in HB 1002, authored by Rep. Chuck Goodrich, R-Noblesville.
The bill seeks to develop function-centered mastering in Indiana substantial educational facilities, like apprenticeships and internships. In addition, the invoice would develop a framework for pupils to gain a put up-secondary credential prior to leaving the K-12 procedure.
Huston stated the bill is component of a caucus system to make it possible for extra of that do the job-primarily based learning to depend toward a student’s graduation demands.
“We can ensure that regardless of whether little ones are heading to go into a put up secondary workforce plan or they are going to go to a two- or four-calendar year school, that we can give them the competencies that they need to get started to be impactful in the workforce,” Huston said, stressing the need for far more overall flexibility . “Experience needs to be suitable, and it desires to be applied.”
The Home Republicans’ budget will also continue a several years-extensive press to continue on growing the availability of condition bucks for Hoosier pupils to show up at non-public faculties.
Beneath Indiana’s Option Scholarship Software, which lets family members to obtain vouchers to show up at private educational institutions, the recent annual cash flow limit for a household of 4 is about $154,000 — equivalent to 300{08cd930984ace14b54ef017cfb82c397b10f0f7d5e03e6413ad93bb8e636217f} of the quantity required for a scholar to qualify for the federal no cost or lessened value lunch method.
Huston said that money ceiling could boost even more this session.
“We think – and I have always been, I feel, reliable in that … parents ought to have an possibility to send out their kids to a faculty that very best meets their desires,” he claimed, introducing that he “would adore to see” the plan turn into universal. “We’ll see if it does.”
About 44,000 students took gain of a voucher all through the 2021-22 college calendar year, at a point out price of about $240 million.
Earning absolutely sure point out investments ‘focus on returns’
A monthly bill filed by Rep. Ethan Manning, R-Logansport, would guarantee that Indiana’s community retirement fund investment decision methods “remain concentrated on maximizing returns and not on political and social challenges,” Huston said.
Rep. Ethan Manning, R-Logansport (Image from Indiana Dwelling Republicans)
“They need to have to halt doing work with specified banks and expenditure companies wherever they concentrate on all those varieties of insurance policies,” he stated, pointing to Vanguard, for illustration, which not long ago withdrew from an expenditure sector initiative on weather alter.
“My concentration is on the actuality that their job is to commit and improve returns. Our job is to make public policy,” Huston mentioned. “If they want to develop community policy, they really should run for elected business.”
Point out regulation by now demands the Indiana Community Retirement Procedure (INPRS) to concentration exclusively on maximizing financial rewards, as opposed to everything else. Huston mentioned Manning’s bill “clarifies and assures that is the coverage.”
Increasing sources for females and young children
Huston claimed the Residence GOP will also prioritize HB 1009, authored by Rep. Elizabeth Rowray, R-Yorktown, which would allow boy or girl assist payments to start out at conception. Huston reported he believes unborn young children are owed a obligation of aid from both moms and dads.
The invoice would enable for extra recovery of Medicaid expenses for pregnancy and childbirth expenditures by growing the period of time for which kid guidance can be purchased to 40 weeks prior to the start of the little one, in accordance to the bill.
The caucus will on top of that deal with substantial overall health care prices, Huston ongoing. It’s an challenge that Holcomb and Senate Republicans have prioritized, much too.
The Dwelling speaker mentioned he is “largely disappointed” in the “lack of action” by Indiana’s insurers and nonprofit hospitals to address high well being treatment selling prices, specifically soon after calling on them in December of 2021 to acquire a plan to decrease fees for Hoosier individuals.
Especially, HB 1003 and HB 1004 purpose to increase competitiveness in both the company and insurance plan marketplaces. The measures also seek out to require extra transparency close to price ranges charged by non-revenue hospitals.
“We’re speaking about producing positive that we have sturdy sets of selections for folks to go to, you know, much more transparency, and if you’re earlier mentioned a particular value, that there will be penalties,” Huston mentioned. “We will need to see far more competitors in the marketplace, and we’re seeking at incentives to make that occur.”
Property Republicans will also try to earmark additional point out dollars to help communities throughout the state increase obtain to affordable housing. HB 1005, submitted by Rep. Doug Miller, R-Elkhart, would build on some of the recommendations from very last year’s housing task pressure.
Also crucial on the Residence GOP agenda is a bill that would be certain folks with mental well being conditions receive therapy in regional hospitals, not jails. An additional priority evaluate, HB 1007, which Huston reported would guidance a “diverse and sturdy electricity plan that ensures dependability and affordability.”
As big tech and retailers continue wading into the care delivery waters, it puts even more pressure on hospitals and health systems to “accelerate on the curve,” and prioritize digital health investments capable of delivering value.
In 2022, U.S. hospitals and health systems were up against some of the toughest financial headwinds since the pandemic began. Dried up federal public health emergency (PHE) funding, costlier inpatient stays, decreasing outpatient revenue, and decreased demand for care, still hovering below pre-pandemic levels, are among the financial challenges hospitals and health systems face this year, and will continue to face into the next.
Financial Pressures Abound
Hospitals, in particular, have taken the biggest financial hit. The Median Kaufman Hall Year-To-Date (YTD) Operating Margin Index, which reflects actual margins for 900 U.S. hospitals, was -0.2{08cd930984ace14b54ef017cfb82c397b10f0f7d5e03e6413ad93bb8e636217f} through November 2022, according to the company’s National Hospital Flash Report, with more negative months following. “Labor shortages, high prices for supplies, and cost increases to treat sicker patients over longer stays are ballooning hospital expenses,” said Erik Swanson, senior vice president of data and analytics for Kaufman Hall, to Fierce Healthcare.
While some are doing better than others, health systems as a whole are facing significant short- and … [+] long-term financial pressures
getty
Health systems, on the other hand, are faring better. A recent Kaiser Family Foundation analysis found that operating margins for the three largest U.S. health systems – HCA Healthcare (HCA), Tenet Healthcare Corporation (Tenet), and Community Health Systems (CHS) — were not only positive for most of the pandemic, but exceeded pre-pandemic levels during the majority of that time, including the third quarter of 2022.
Health systems are certainly not immune to financial challenges and pressures, though. The current economic climate, rising costs and interest rates, and planned cuts to Medicare payments are all impacting organizations’ financial outlooks – issues only compounded by having to take care of sicker patients, while dealing with the fallout from patients delaying care during the pandemic.
Ed Marx is CEO of Divurgent
Ed Marx
“There are multiple forces at work colluding to erode profitability,” says Ed Marx, CEO of healthcare consulting firm Divurgent. Marx, a veteran health IT leader and former chief information officer (CIO) at Cleveland Clinic, sees the nursing shortage, “generally-modest reimbursement rates,” and the shift to outpatient and hospital-at-home models as adding to the “bearish reality” that hospitals and health systems have faced in recent years.
More Options, More Competition
Both hospitals and health systems continue to face competition from burgeoning retail and ambulatory care centers as well, where even traditional players are exploring new models of care.
“New entrants in the marketplace are disintermediating traditional care models, including high-tech companies such as Amazon, an explosion in street-corner retail converting to care centers, virtual-first companies such as AmWell, and finally, payers as providers,” said Marx.
Moreover, many of these newer care entrants have the existing tech infrastructure and capabilities to provide patients with a more digital, consumer-friendly experience. And as big tech and retailers continue wading into the care delivery waters, it puts even more pressure on hospitals and health systems to up the ante when it comes to digitizing healthcare delivery and investing in digital health capabilities.
With all of these factors at play, how are health systems considering future investments in digital health? Are health systems pulling back the throttle? And, what should digital health companies be doing to be the most attractive option?
Steward Health Care System: Innovating around Challenges
Hospitals and health systems are no strangers to small margins, but the current economic climate means there is an even greater need to be efficient operators, regardless of any payer negotiated payment rate increases, says Steward Health Care System chairman and CEO Ralph de la Torre.
Steward is the largest physician-owned private for-profit healthcare network in the country, with more than 5,500 providers and 43,000 health care professionals caring for 12.3 million patients a year. Based in Dallas, Steward provides care globally and nationally, including across Arizona, Arkansas, Florida, Louisiana, Massachusetts, Ohio, Pennsylvania, Texas, and Utah.
Dr. Ralph de la Torre is the founding Chairman and CEO of Steward Health Care System
Ralph de la Torre
Having been at the helm of Steward as CEO since 2008, de la Torre has weathered tough times before, but sees a bright spot ahead for digital health and innovation within hospitals and health systems. “The way I see it, this environment provides young health tech companies and digital health with tremendous opportunities,” said de la Torre. “Pressure on traditional health systems provides great opportunity for both digital health companies and organizations like Steward to digitize themselves, or in some cases, cannibalize themselves.”
Regarding the latter point, de la Torre referenced Steward’s recent deal with CareMax, the now-exclusive value-based management services organization for Steward’s Medicare network, which moves care from the hospital to a lower cost, more coordinated model. Says de la Torre, “That’s a patient and physician focused move that is a bet on the future of care – one we are most definitely a part of, but not in the same owned, four-walls way we had historically operated.”
De la Torre is also encouraged by the increase in venture capital (VC) and health system partnerships, whereby health systems become the “test beds” for VC firms’ digital health portfolio companies’ offerings. In November, VC firm General Catalyst announced a number of new health system partners, bringing its roster to 14 system collaborators. Also in November, VC firm Andreessen Horowitz announced its partnership with rural health system Bassett Healthcare Network. The partnership, through a16z’s Bio+Health Fund, creates a formal process for getting a16z-backed offerings to Bassett for consideration.
While Steward continues to invest in innovation, including new technologies like AI, much of the health system’s investment is in support of value-based care and the tenet of “right care, right time, right place,” says de la Torre.
CommonSpirit Health: At An Inflection Point For Digital Health
For CommonSpirit Health — the result of a 2019 merger between Catholic Health Initiatives and Dignity Health, and the fourth largest healthcare system in the U.S. by bed size — despite reporting a $23 million operating gain in the first quarter of its fiscal year, the system ultimately had a $397 million net loss for the quarter ending on September 30. Per the company’s Q3 earnings, persistent labor shortages and other “revenue challenges” contributed to its razor-thin 0.3{08cd930984ace14b54ef017cfb82c397b10f0f7d5e03e6413ad93bb8e636217f} margin for the first quarter, all on the heels of a fiscal year in which the system had a nearly $1.3 billion operating loss and a $1.85 billion net loss.
Rich Roth is SVP and Chief Strategic Innovation Officer at CommonSpirit
Rith Roth
Rich Roth, SVP and chief strategic innovation officer at CommonSpirit, sees these challenges as an inflection point. “In many ways, today’s financial challenges necessitate the need for strategic innovation, partnerships and revenue diversification, and are a test to every system’s innovation and investment thesis,” he said. Roth also notes the renewed urgency he sees to design innovations that can meet provider and organizational needs, while demonstrating fast impact and ROI to augment recovery efforts. “Our strategy has always been to align deeply with operations, and thus many of the innovations we seek are in support of the problems they identify.”
But it’s the innovations that focus on holistically and equitably supporting patients that present the biggest opportunities for health systems. As Roth explains, CommonSpirit’s investment in Concert Health is one way the health system is “helping reduce barriers to care access for behavioral health to better support the community need.”
Geisinger: Prioritizing The Patient Experience
“At Geisinger, our priority is patient experience,” says Karen Murphy, PhD, RN, executive vice president and chief innovation and digital transformation officer of the health system. Geisinger is a fully integrated health system that serves central, south central and northeast Pennsylvania, as well as seven counties in southern New Jersey, to provide care to over 4 million residents.
Karen Murphy, PhD, RN is Executive Vice President and Chief Innovation Officer, Founding Director, … [+] Steele Institute for Health Innovation, Geisinger
Karen Murphy
As Murphy notes, making digital health tools easy to use and helping patients navigate the healthcare environment efficiently is the main focus for the health system. “This strategy allows patients to be seen sooner and have their medications refilled faster, and provides for easier engagement between providers and patients,” said Murphy.
And the strategy seems to be working, as the number of patients using certain digital health tools at the organization is growing. Data provided by Geisinger for the past year (ending 9/30/22) shows:
1.2 million Geisinger patients sought healthcare provider information online.
829,000 people used our patient portal (MyChart), a 12{08cd930984ace14b54ef017cfb82c397b10f0f7d5e03e6413ad93bb8e636217f} increase year over year, submitting a total of 1.68 million requests/messages through the portal.
Nearly 352,000 appointments were scheduled online.
More than 368,000 prescription renewals and refills were completed online.
$48 million in revenue was collected through online bill pay options.
Murphy says that Geisinger also continues to invest in chronic care management solutions, “to leverage technology to connect with patients where they are and help them manage chronic conditions more easily.” One example is Gesinger’s ConnectedCare365 app, which Murphy says uses remote patient monitoring, AI and patient-reported outcomes to manage chronic conditions for patients at home.
Murphy also pointed to increases in virtual care utilization since the beginning of the pandemic. “In 2022, Geisinger providers conducted an average of 340,000 virtual visits per month in primary care and across dozens of specialties,” she explained.
Accelerate On The Curve
For digital health developers, which are seeing investment interest plummet compared to years prior, this means there is even more pressure to get things right and ultimately deliver value for their provider customers.
“The challenge for digital health companies remains the same: If you are a single-solution provider (focused/narrow by design), you must be obviously better and more impactful in an area that really matters, than something a health system could build itself,” said de la Torre. He also flagged that best in suite applications are usually cheaper and much easier to implement than best in breed applications.
Digital health developers are also up against an overall ebbing of interest from the all-digital, all-virtual heyday of the pandemic. “During the pandemic, there was an insatiable appetite for any digital tool that helped to provide care in a covid friendly manner,” said Marx of Divurgent. But in a largely post-pandemic world, these exuberant purchases are now taking a toll and executives are taking notice, he says.
Marx does note that while there remains interest in digital tools that can help pull costs out of the system, and for those that directly improve clinician and consumer experiences, that’s about where it ends. “You can see the retreat happening in previous excessive valuations and uncontested hospital purchases,” says Marx. At the same time, hospitals that neglect to continue to invest in digital transformation may find themselves targets for acquisition.
With this in mind, hospitals need to accelerate on the curve, says Marx. “While competitors may slow down or pump the breaks, this is not a time to be timid. New entrants have the pedal to the metal, and they will continue to gain ground.”
For de la Torre, innovation is key to sustainable growth for both healthcare technology companies and hospitals and health systems. “With the outsized impact new technology can make on hospital and health systems’ success (or failure), digital health companies need to be more agile and sharper than ever before.”
The same goes for hospitals and health systems looking to make an impact through digital health. There are many ways to cut corners for quarterly results or short-term gains, and that’s not a winning strategy, says de la Torre. “In healthcare, if you put your patent and employees first, and keep your eyes cast on the horizon, you will make better decisions.”

