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Too much money is going into too many untested AI applications in health care, we learn in The Future of Healthtech 2025 from Silicon Valley Bank (SVB).
While “the new healthtech is here” in the form of AI-everything, SVB points out that it’s “Provider Ops” and the back office that’s driving the sector.
“Healthtech is now definitively an administrative sector, not a clinical one,” SVB asserts in the first of three key themes plot-lining the report.
What sets the stage for context are these four important charts which explain how mediocre U.S. health care delivery and ROI on spending are in terms of health care coverage (on the downturn) and clinical outcomes (the fourth chart’s evidence). Self-rationing care due to cost continues to be part of mainstream health consumer behavior, the second line graph details.
AI to the rescue? Not so fast. SVB cleverly asks in the title of this third chart, “Chat, What’s Another Word for Bubble?”
With an influx of too much capital going toward unproven technologies, SVB warns, “the mismatch between investor optimism and clinical scrutiny is also showing up in adoption.”
Thus the first phase of adoption being administrative applications for labor- and time-saving along with scribe-saving investments.
Health Populi’s Hot Points: And so we end up here as we usually do when it comes to new technology diffusion in health care — the templated “Arms Race” slice here for AI observations at the bottom left increasing slope of the S-adoption curve.
In the U.S. healthcare tug-of-war of “the battle lines for claims,” we see from this concluding chart that providers want to care the way they want to care, and payers want to deny — with the countervailing objective of lower costs. That is, countervailing in a volume-driven payment world and not in a value-driven one, where the approval may result in a faster cure, better care and quality of life, and return to work sooner versus later.
Appreciation to the team at SVB for always doing great work on these impactful, timely reports.
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