“Trump Administration Proposes Major Changes in Health Tech Budget – What You Need to Know!”
The Trump administration has proposed a new budget that includes the creation of a new office of the chief technology officer within the federal health department. This office would house the Assistant Secretary for Technology Policy, the department’s health IT regulator, and an “Office of Chief Information.” The proposed budget allocates $9 million to the ASTP, a significant decrease from the $66 million appropriated in the 2023 budget.
RadNet, a network of nearly 400 radiology imaging centers, has announced a deal to acquire iCAD, a developer of an AI breast cancer screen, for $103 million. This move by RadNet highlights the company’s commitment to investing in AI capabilities, despite challenges in the market. While radiology products account for a large portion of AI devices cleared by the FDA, adoption by providers can be challenging due to reimbursement issues and uncertain economic benefits.
Semler Scientific has offered to pay nearly $30 million to settle federal health care fraud claims related to its peripheral artery disease test, QuantaFlo. This settlement would resolve an investigation into whether federal health programs paid out improper claims based on the use of QuantaFlo. A previous investigation revealed that UnitedHealth Group used QuantaFlo to boost Medicare reimbursements.
The Peterson Center on Healthcare released a report showing a significant increase in spending on remote monitoring technologies. The report highlights the growing use of remote physiologic monitoring codes, which providers use to bill for setting patients up with devices like blood pressure cuffs. The report suggests implementing duration limits for monitoring and limiting payment to conditions where monitoring shows value.
A telehealth-based diabetes care program implemented by the Department of Veterans Affairs has been estimated to save over 200,000 miles of driving and reduce carbon dioxide emissions. The program has shown significant benefits in reducing the number of days patients experience migraines. However, challenges remain in monetizing clinical apps like CT-132, which received FDA clearance for migraine treatment.
Verily, Alphabet’s health tech company, announced new partnerships with NashBio, University of Oxford, and the NIH Intramural Center for Alzheimer’s and Related Dementias to use its Workbench product for data analysis. BigHat Biosciences is collaborating with Eli Lilly on developing candidates for chronic diseases using machine learning. Lilly, along with Merck and Samsung Ventures, is investing in BigHat to support their research efforts.
Overall, these developments in health tech highlight the ongoing transformation of the life sciences industry through technology and innovation. The sector continues to face challenges in adoption, reimbursement, and monetization, but the potential for improving patient outcomes and reducing healthcare costs remains significant.