Garber highlights the importance of AI in back-office functions such as fraud detection, waste management, revenue cycle management, and procurement. These areas, often considered “low-hanging fruit,” are pivotal in driving high returns on investment (ROI) and managing risks, offering substantial opportunities for cost reduction and efficiency improvement. 

 

As AI technologies become more prevalent in healthcare, the need for stringent regulatory frameworks to ensure these innovations are safe, effective, and equitable becomes apparent. Garber discusses the challenges of navigating a potential patchwork of state regulations, stressing the importance of establishing robust guardrails to maintain trust and integrity in AI-driven healthcare solutions. 

 

Garber mentions that AI extends its utility beyond administrative tasks to crucial roles such as medical scribing and differential diagnosis, leading to more personalized medicine approaches. This shift significantly alters treatment landscapes and patient care strategies. Furthermore, with a growing senior population and the challenges of managing chronic conditions like Alzheimer’s and Parkinson’s, AI offers promising tech-enabled models for earlier identification and intervention. 

Garber notes that the challenges include privacy concerns, hardware compatibility, and the competitive landscape. There are numerous sensor technologies available, making it difficult to determine which will prevail, if any. Without AI-driven sensor home proximity and ambient technology, it will be much more difficult to handle at home. Given the cost centers and prevalence, he believes this area will continue to attract investment. 

 

The discussion also covers the impact of recent administrative shifts on healthcare policies, particularly concerning value-based care models. These models aim to improve healthcare outcomes by aligning incentives with patient health rather than service volume. Garber explores the potential regulatory changes that could support the widespread adoption of such models, including standardized regulations across states and reduced restrictions on Medicare Advantage plans. 

 

Furthermore, Robert mentioned that during the last Trump administration, there was a push for alternative health plans, known as Association Health Plans (AHPs). These plans, characterized by their minimal coverage, often lacked comprehensive options for preventative or primary care, but they were less expensive. Another strategy employed was the importation of pharmaceuticals from international markets, notably Canada, to reduce drug prices. Although this approach faced resistance from the drug lobby, it could resurface as a topic of discussion. 

 With potential new policies emerging, changes in Medicaid expansions and pharmacy pricing are anticipated. These developments could lead to significant shifts in the accessibility and affordability of healthcare services, impacting everything from patient care to the economics of the industry. 

 

A huge portion of Garber’s insights focus on the escalating mental health crisis, emphasizing the need for increased supply and accessibility of mental health services. He advocates for training lower-level clinicians in specific therapy modalities and stresses the importance of integrating digital therapeutics into standard care to address this urgent issue. For instance, there are therapy modalities such as CBT (Cognitive Behavioral Therapy) or EMDR (Eye Movement Desensitization and Reprocessing) that can be administered by individuals who are not PhD holders. 

 

Robert Garber also mentioned, a recent study published in the New York Times that [[this timeline won’t be the same when this is published]] examined whether Tele-behavioral health truly democratized access for individuals who previously could not afford or access it. The research concluded that primarily affluent people and those with comprehensive employee benefit plans have benefited from the growth of Tele mental health. 

 

The ongoing mental health crisis requires continuous innovation. Garber stresses the importance of increasing the supply of mental health services, tackling severe mental illnesses, and ensuring access and affordability of treatments. 

 

Investment Trends and the Role of Digital Health 

 

In terms of investment, Garber notes the ongoing challenges and opportunities within the digital health sector. He discusses the pressures from institutional investors for demonstrable ROI and the skepticism of payers and providers shaped by experiences during the COVID-19 pandemic. Despite these challenges, he sees potential for significant long-term gains as digital therapeutics become an integral part of healthcare. 

 

A Call for Continued Innovation 

 

Garber concludes with a call to action for healthcare innovators to persist in pushing the boundaries of what is possible. He emphasizes the need for innovative solutions that enable individuals to lead longer, healthier, and happier lives, maintaining the human aspect of healthcare advancements. 

Through his comprehensive analysis, Robert Garber of 7 Wire Ventures provides a clear roadmap for the integration of AI in healthcare, outlining the opportunities, challenges, and future directions that can potentially redefine the industry.