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<item><title>Colorado funds rural tele-ICU with $169.6 million; coding vendors dispute insurers on AI costs; AI score predicts heart failure deaths; robot data flags surgical skill</title><link>https://physicianintheloop.org/posts/2026-09-29/</link><guid isPermaLink="true">https://physicianintheloop.org/posts/2026-09-29/</guid><pubDate>Tue, 29 Sep 2026 07:00:00 -0600</pubDate><dc:creator>Ryan Gillum, MD</dc:creator><description>Colorado awarded $169.6 million on Monday to 91 rural health care providers for about 250 projects, including tele-ICU, telehospitalist and remote patient monitoring services, under the federal Rural Health Transformation Program, the state said.</description><content:encoded><![CDATA[<div class="section-label">THE SHORT READ</div><div class="intro"><p>Colorado awarded $169.6 million on Monday to 91 rural health care providers for about 250 projects, including tele-ICU, telehospitalist and remote patient monitoring services, under the federal Rural Health Transformation Program, <a href="https://hcpf.colorado.gov/press-release/colorado-awards-rural-healthcare-providers" target="_blank" rel="noopener">the state said</a>.</p><p>The awards cover 52 rural or frontier counties and three rural census tract counties and were chosen from 112 eligible applications seeking more than $250 million, according to the state&#x27;s Department of Health Care Policy and Financing. The same day, the Centers for Medicare and Medicaid Services <a href="https://www.cms.gov/newsroom/press-releases/trump-administration-announces-51-million-rural-texas-nutrition-chronic-disease-prevention-programs" target="_blank" rel="noopener">announced $51 million</a> for chronic disease prevention through 68 rural hospital districts and authorities in Texas. Neither announcement names an artificial intelligence project.</p><p>Makers of hospital coding software disputed insurers&#x27; finding that AI-assisted billing added $942 million in costs, <a href="https://www.healthcaredive.com/news/insurers-say-ai-could-add-billions-in-health-costs-billing-companies-disag/831497/" target="_blank" rel="noopener">Healthcare Dive reported</a>. New papers in npj Digital Medicine describe an Oxford heart failure mortality score, a University of Pennsylvania CT model and a Japanese analysis of robot motion during prostate surgery. It was otherwise a quiet day for new developments.</p></div><div class="section-label details-label">THE DETAILS</div><ul class="items"><li class="item"><div class="cat">Money  <span class="when">Sept 28, 2026</span></div><div class="item-title"><a href="https://hcpf.colorado.gov/press-release/colorado-awards-rural-healthcare-providers" target="_blank" rel="noopener">Colorado awards $169.6 million to 91 rural providers for tele-ICU, telehospitalist, remote monitoring and other projects</a></div><div class="item-body">Colorado&#x27;s Department of Health Care Policy and Financing, the state Medicaid agency, announced $169,587,181 in Rural Health Transformation Program grants on Sept. 28 for about 250 projects in 52 rural or frontier counties and three rural census tract counties. The program is the $50 billion federal fund for rural health that CMS is distributing to all 50 states, and Colorado&#x27;s first-year federal allotment is $200.1 million, the state said. The state listed tele-ICU, telehospitalist services, remote patient monitoring, regional telehealth networks, electronic health record updates, shared technology platforms and digital health tools among the funded work, and <a href="https://www.cms.gov/newsroom/press-releases/trump-administration-announces-169-million-expand-specialty-care-strengthen-emergency-services-bring" target="_blank" rel="noopener">CMS&#x27;s release</a> added telemedicine in ICUs and inpatient settings, mobile clinics and prehospital whole-blood transfusion training for EMS in 39 counties. The state received 112 eligible applications seeking more than $250 million for 368 projects. &quot;These RHTP awards are a direct investment in rural resiliency,&quot; said Michelle Mills, chief executive of the Colorado Rural Health Center. Neither release names an AI project, and the state said the full awardee list is on its program page.</div><div class="item-src">Sources: <a href="https://hcpf.colorado.gov/press-release/colorado-awards-rural-healthcare-providers" target="_blank" rel="noopener">Colorado HCPF</a>, <a href="https://www.cms.gov/newsroom/press-releases/trump-administration-announces-169-million-expand-specialty-care-strengthen-emergency-services-bring" target="_blank" rel="noopener">CMS, Colorado awards</a>, <a href="https://www.cms.gov/newsroom/press-releases/trump-administration-announces-51-million-rural-texas-nutrition-chronic-disease-prevention-programs" target="_blank" rel="noopener">CMS, Texas awards</a></div></li><li class="item"><div class="cat">Money  <span class="when">Sept 28, 2026</span></div><div class="item-title"><a href="https://www.healthcaredive.com/news/insurers-say-ai-could-add-billions-in-health-costs-billing-companies-disag/831497/" target="_blank" rel="noopener">Coding software makers say AI captures missed services as insurers tie $942 million in added costs to hospital AI billing</a></div><div class="item-body">Vendors of hospital coding software rejected the Blue Cross Blue Shield Association&#x27;s conclusion, reported in this site&#x27;s Sept. 25 post, that AI-assisted billing raised inpatient costs without a matching rise in treatment, according to Healthcare Dive. &quot;If patients are truly sicker, we&#x27;d expect to see more treatment,&quot; Luke Chalker, the association&#x27;s senior vice president of product and data science, said, citing more anemia diagnoses without more transfusions. Dr. Travis Bias of Solventum, whose coding products Healthcare Dive said are used by more than 80% of U.S. hospitals, said the cause is fee-for-service payment: &quot;we pay for volume, not for value.&quot; Hamid Tabatabaie, chief executive of CodaMetrix, which serves more than 500 hospitals, said hospitals not using such systems had been missing billable services. <a href="https://techcrunch.com/2026/09/26/insurers-claim-ai-is-already-increasing-healthcare-costs/" target="_blank" rel="noopener">TechCrunch</a> reported that Abridge founder Dr. Shiv Rao described competing automated systems on both sides of claims as a possible &quot;horrible dystopic future.&quot;</div><div class="item-src">Sources: <a href="https://www.healthcaredive.com/news/insurers-say-ai-could-add-billions-in-health-costs-billing-companies-disag/831497/" target="_blank" rel="noopener">Healthcare Dive</a>, <a href="https://techcrunch.com/2026/09/26/insurers-claim-ai-is-already-increasing-healthcare-costs/" target="_blank" rel="noopener">TechCrunch</a>, <a href="https://www.fiercehealthcare.com/finance/hospitals-use-ai-coding-tools-cost-bcbsa-plans-942m-more-similar-care-analysis" target="_blank" rel="noopener">Fierce Healthcare, BCBSA analysis</a></div></li><li class="item"><div class="cat">Evidence  <span class="when">Sept 26, 2026</span></div><div class="item-title"><a href="https://www.nature.com/articles/s41746-026-03258-1" target="_blank" rel="noopener">Oxford&#x27;s 11-variable AI heart failure score predicts one-year death with C-index of 0.801 in 373,389 patients, above an adapted MAGGIC score</a></div><div class="item-body">University of Oxford researchers distilled a transformer neural network into SIMPLE-HF, an 11-variable score built from age, body mass index, comorbidities and medications, using UK primary care records for 373,389 adults with heart failure, according to the paper published Sept. 26 in npj Digital Medicine. For 12-month all-cause mortality the score reached a C-index of 0.801, compared with 0.735 for an electronic record version of the MAGGIC score, the authors reported. At a set risk threshold it identified 177 true events per 1,000 people screened, compared with 89 for MAGGIC. The score uses point-of-care variables and does not require echocardiography, the authors said, and they called for external validation and prospective clinical evaluation before use.</div><div class="item-src">Source: <a href="https://www.nature.com/articles/s41746-026-03258-1" target="_blank" rel="noopener">npj Digital Medicine</a></div></li><li class="item"><div class="cat">Evidence  <span class="when">Sept 29, 2026</span></div><div class="item-title"><a href="https://www.nature.com/articles/s41746-026-03257-2" target="_blank" rel="noopener">Penn radiology team trains CT vision-language model on more than 400,000 scan-report pairs and tests it on 20,000 held-out people</a></div><div class="item-body">Researchers in the University of Pennsylvania&#x27;s radiology department described Percival, a model trained on paired CT images and radiology reports, in npj Digital Medicine on Sept. 29. The model learned from more than 400,000 CT-report pairs and was evaluated on more than 20,000 held-out participants, the authors reported. Its internal representations tracked demographic, physiological and laboratory differences, and training on reports as well as images captured clinical information that image-only comparison models did not, in disease classification and longitudinal risk assessment, according to the paper.</div><div class="item-src">Source: <a href="https://www.nature.com/articles/s41746-026-03257-2" target="_blank" rel="noopener">npj Digital Medicine</a></div></li><li class="item"><div class="cat">Evidence  <span class="when">Sept 29, 2026</span></div><div class="item-title"><a href="https://www.nature.com/articles/s41746-026-03137-9" target="_blank" rel="noopener">Robot motion data separate expert from less experienced surgeons in 98 robotic prostatectomies with an AUC of 0.892</a></div><div class="item-body">Kobe University urologists analyzed instrument motion recorded by the hinotori surgical robot during the bladder-urethra reconnection step of 98 robot-assisted radical prostatectomies by 16 surgeons, according to a study published Sept. 29 in npj Digital Medicine. A random forest classifier distinguished certified proctors from other surgeons with an area under the curve of 0.892, and a three-feature model generalized to surgeons it had not seen, the authors reported. Proctors finished the step in 45.5 minutes on average, compared with 67.8 minutes. The authors described the work as exploratory, citing a single platform, a single surgical step, a 1-hertz sampling rate and only five anastomotic leaks for outcome analysis.</div><div class="item-src">Source: <a href="https://www.nature.com/articles/s41746-026-03137-9" target="_blank" rel="noopener">npj Digital Medicine</a></div></li><li class="item"><div class="cat">Evidence  <span class="when">Sept 26, 2026</span></div><div class="item-title"><a href="https://www.nature.com/articles/s41746-026-03312-y" target="_blank" rel="noopener">Remote blood pressure monitoring reached 5.2% of eligible patients at a Deep South health system; a few doctors made most referrals</a></div><div class="item-body">University of Alabama at Birmingham researchers reviewed health record data for 5,280 patients with hypertension and 88 primary care clinicians at a large academic health system in the Deep South, according to a paper published Sept. 26 in npj Digital Medicine. Remote patient monitoring reached 5.2% of eligible patients, and 62.5% of primary care clinicians made at least one referral, the authors reported. Referrals were concentrated among a small number of clinicians, and the authors said more research is needed on how clinicians and patients decide to use the service.</div><div class="item-src">Source: <a href="https://www.nature.com/articles/s41746-026-03312-y" target="_blank" rel="noopener">npj Digital Medicine</a></div></li><li class="item"><div class="cat">Workforce  <span class="when">Sept 28, 2026</span></div><div class="item-title"><a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/optum-health-taps-ai-focused-chief-product-officer/" target="_blank" rel="noopener">Optum Health names former AI scribe company chief Wes Donohoe CEO for AI and product innovation</a></div><div class="item-body">Optum Health, UnitedHealth Group&#x27;s care delivery arm, named Wes Donohoe chief executive for AI and product innovation, effective Sept. 21, Becker&#x27;s Hospital Review reported Sept. 28. Donohoe most recently led VisitRecall, an ambient AI scribe company that Becker&#x27;s said is closing, and has been a general partner at the venture fund BullVC since 2020. He visited Optum teams in Minnesota and Texas and its Atrius Health medical group in Massachusetts in his first week, and said he plans to pilot tools with individual care teams, evaluate them and scale what works to millions of patients, according to the report. Becker&#x27;s corrected an earlier version that gave his title as chief product officer.</div><div class="item-src">Source: <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/optum-health-taps-ai-focused-chief-product-officer/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review</a></div></li></ul>]]></content:encoded></item>
<item><title>What does the Rural Health Transformation Program pay for, and how does a rural hospital get some?</title><link>https://physicianintheloop.org/specials/rural-health-transformation-program/</link><guid isPermaLink="true">https://physicianintheloop.org/specials/rural-health-transformation-program/</guid><pubDate>Tue, 29 Sep 2026 07:00:00 -0600</pubDate><dc:creator>Physician in the Loop</dc:creator><description>The $10 billion a year goes to states, not hospitals. A hospital gets money only through its state&#x27;s funding rounds, under federal grant rules. Technology, AI included, can qualify; care that insurers already pay for cannot.</description><content:encoded><![CDATA[<p><img src="https://physicianintheloop.org/images/specials/rural-health-transformation-program.jpg?v=f95ca614e2" alt="A rural mailbox with its amber flag raised stands beside a country road that leads to a small one-story hospital with a water tower." width="1200" height="630"></p><p>On Sept. 28, Colorado&#x27;s Medicaid agency <a href="https://hcpf.colorado.gov/press-release/colorado-awards-rural-healthcare-providers" target="_blank" rel="noopener">said it would send $169.6 million</a> from the federal Rural Health Transformation Program to 91 applicants, for about 250 projects in 55 counties. Every state <a href="https://www.kff.org/medicaid/a-closer-look-at-the-50-billion-rural-health-transformation-program/" target="_blank" rel="noopener">must commit its first year&#x27;s money by Oct. 30</a>, and the Centers for Medicare &amp; Medicaid Services (CMS), which runs the program, <a href="https://www.medicaid.gov/resources-for-states/rural-health/rhtp-resources/RHTP-Post-Award-FAQ-09-2026.pdf" target="_blank" rel="noopener">has said it will not extend that deadline</a>.</p><p>Where the money goes</p><p>Congress created the program in <a href="https://www.cms.gov/files/document/chapter-4-protecting-rural-health-hospitals-providers.pdf" target="_blank" rel="noopener">the budget law signed July 4, 2025</a>: $10 billion a year for fiscal years 2026 through 2030, for the 50 states only. Half of each year&#x27;s money is split equally. CMS allocates the other half by a score. Rural factors such as population, uncompensated care and land area make up half of it, calculated once; the state&#x27;s plans and its commitments to change state policy make up the rest, <a href="https://apply07.grants.gov/apply/opportunities/instructions/PKG00291485-instructions.pdf" target="_blank" rel="noopener">recalculated every year</a>. <a href="https://www.cms.gov/newsroom/press-releases/cms-announces-50-billion-awards-strengthen-rural-health-all-50-states" target="_blank" rel="noopener">First-year awards</a> ran from $147.3 million for New Jersey to $281.3 million for Texas; Colorado received $200.1 million.</p><p><a href="https://www.cms.gov/files/document/chapter-4-protecting-rural-health-hospitals-providers.pdf" target="_blank" rel="noopener">The law lists 10 uses</a>, from chronic disease prevention to recruiting clinicians, and requires each state to fund at least three. Artificial intelligence appears once, in a use that pays for &quot;training and technical assistance&quot; to help rural hospitals adopt technology, &quot;including remote monitoring, robotics, artificial intelligence, and other advanced technologies.&quot; Software and hardware fall under a separate use, for information technology and cybersecurity. Some states fund AI by name. <a href="https://governorreeves.ms.gov/governor-reeves-announces-167-rural-health-transformation-program-awards-totaling-more-than-104-million/" target="_blank" rel="noopener">Mississippi&#x27;s first round</a> included $537,094 for Hattiesburg Clinic &quot;to deploy ambient AI documentation to approximately 500 providers across its multispecialty network,&quot; and <a href="https://hcpf.colorado.gov/sites/hcpf/files/RHTP%20FAQs%207.30.26.pdf" target="_blank" rel="noopener">Colorado&#x27;s program says</a> &quot;AI-enabled tools, subscription platforms, and other technology solutions are allowable when they directly support approved project activities.&quot;</p><p>What it will not pay for</p><p>CMS added limits the law does not contain. <a href="https://www.cms.gov/files/document/provider-payments-fact-sheet.pdf" target="_blank" rel="noopener">Payments to providers</a> may not exceed 15% of a state&#x27;s award in a budget period, are meant for services that insurance does not already pay for, and cannot raise payment rates for billable care. Spending on existing buildings and equipment <a href="https://www.cms.gov/files/document/capital-expenditures-fact-sheet-category-j-payments.pdf" target="_blank" rel="noopener">is capped at 20%</a>, new construction is not allowed, and <a href="https://apply07.grants.gov/apply/opportunities/instructions/PKG00291485-instructions.pdf" target="_blank" rel="noopener">no more than 5%</a> may go to replacing an electronic health record when a certified one was in place on Sept. 1, 2025. The money also <a href="https://apply07.grants.gov/apply/opportunities/instructions/PKG00291485-instructions.pdf" target="_blank" rel="noopener">cannot replace existing state, local or private funding</a>, such as staff salaries, and <a href="https://hcpf.colorado.gov/sites/hcpf/files/RHTP%20FAQs%207.30.26.pdf" target="_blank" rel="noopener">Colorado adds</a> that its grants &quot;cannot pay for billable telehealth services.&quot;</p><p>How a hospital gets money</p><p>Hospitals get the money from their state, as grants, contracts or program payments, and <a href="https://www.medicaid.gov/resources-for-states/rural-health/rhtp-resources/RHTP-Post-Award-FAQ-09-2026.pdf" target="_blank" rel="noopener">CMS leaves the process to each state</a>. The rounds differ. <a href="https://hcpf.colorado.gov/press-release/hcpf-opens-applications-reduce-health-care-costs" target="_blank" rel="noopener">Colorado&#x27;s</a> was a $160 million request for applications, open from June 23 to Aug. 3. <a href="https://mississippirhtp.com/wp-content/uploads/2026/06/ada_2026-MS-RTG-Program-NOFO-Version-2-061726.pdf" target="_blank" rel="noopener">Mississippi&#x27;s technology notice</a> expected general awards of $200,000 to $400,000 and pays subrecipients &quot;on a reimbursement basis.&quot;</p><p>A hospital that wins usually becomes a subrecipient of a federal grant, and duties follow the money. It <a href="https://www.law.cornell.edu/cfr/text/2/25.300" target="_blank" rel="noopener">needs a Unique Entity Identifier</a>. <a href="https://hcpf.colorado.gov/sites/hcpf/files/RHTP%20FAQs%207.30.26.pdf" target="_blank" rel="noopener">Colorado also requires</a> an active SAM.gov registration and warns that grantees &quot;may be subject to applicable federal requirements under 2 CFR Part 200,&quot; the federal grant rules, under which <a href="https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR031321e29ac5bbd/section-200.332" target="_blank" rel="noopener">the state must monitor</a> each subrecipient and verify that it is audited when required.</p><p>Colorado, worked through</p><p><a href="https://hcpf.colorado.gov/rural-health-transformation-program" target="_blank" rel="noopener">Colorado&#x27;s program</a> is run by the Department of Health Care Policy and Financing, the state&#x27;s Medicaid agency. <a href="https://hcpf.colorado.gov/sites/hcpf/files/Project%20Narrative%20%281%29.pdf" target="_blank" rel="noopener">Its plan</a> has 10 initiatives; the 10th, &quot;Expand Rural Telehealth &amp; Technology Integration,&quot; covers eConsults, remote patient monitoring and a &quot;statewide technology readiness assessment.&quot; Lead applicants had to be <a href="https://hcpf.colorado.gov/sites/hcpf/files/RHTP%20FAQs%207.30.26.pdf" target="_blank" rel="noopener">Medicaid-enrolled providers in rural or frontier counties</a>, or a third party applying for one. <a href="https://hcpf.colorado.gov/sites/hcpf/files/Eligible-Rural-Health-Providers-and-Partners-7.15.26.pdf" target="_blank" rel="noopener">Eligible providers</a> ranged from critical access hospitals to rural health clinics and emergency medical services, and partners could include &quot;technology vendors or consultants.&quot;</p><p>The department received 112 eligible applications seeking more than $250 million and <a href="https://hcpf.colorado.gov/press-release/colorado-awards-rural-healthcare-providers" target="_blank" rel="noopener">funded 91</a>. The funded areas include telehealth, tele-ICU and remote patient monitoring, and &quot;EHR modernization and digital health tools.&quot; Neither the department&#x27;s announcement nor <a href="https://www.cms.gov/newsroom/press-releases/trump-administration-announces-169-million-expand-specialty-care-strengthen-emergency-services-bring" target="_blank" rel="noopener">CMS&#x27;s</a> mentions artificial intelligence, and the list of awardees it promised on its program page had not been posted when checked on Sept. 28. For a hospital that did not apply, <a href="https://hcpf.colorado.gov/sites/hcpf/files/RHTP%20FAQs%207.30.26.pdf" target="_blank" rel="noopener">the program&#x27;s FAQs say</a> &quot;the current expectation is that participation requires applying to the RFA issued in June 2026.&quot;</p><p>What can go wrong</p><p>The money can be taken back. <a href="https://www.cms.gov/files/document/chapter-4-protecting-rural-health-hospitals-providers.pdf" target="_blank" rel="noopener">The law lets CMS</a> withhold, reduce or recover payments when a state does not use them as its application described, and it bars administrative or judicial review of those decisions. &quot;We will take the money back&quot; if states &quot;don&#x27;t abide by what they wrote, if they don&#x27;t do a good job,&quot; CMS Administrator Dr. Mehmet Oz said at an event in Washington in June, <a href="https://kffhealthnews.org/rural-health/rural-health-transformation-program-federal-cms-clawbacks-state-plans/" target="_blank" rel="noopener">KFF Health News reported</a>. Hospitals carry risk too: when a provider that took workforce money does not complete its five-year service commitment, CMS &quot;may seek to recoup 100% of the funds awarded to the provider,&quot; <a href="https://www.medicaid.gov/resources-for-states/rural-health/rhtp-resources/RHTP-Post-Award-FAQ-09-2026.pdf" target="_blank" rel="noopener">its FAQs say</a>, unless there are extenuating circumstances.</p><p>Some projects could run into Medicare&#x27;s payment rules. Twenty-two states have announced about $240 million for remote patient monitoring, according to an analysis by the Alliance for Connected Care <a href="https://www.fiercehealthcare.com/health-tech/states-are-betting-millions-remote-patient-monitoring-providers-tech-groups-say" target="_blank" rel="noopener">reported by Fierce Healthcare</a>, while CMS has proposed that from 2027 Medicare pay for remote monitoring only when clinical staff employed by the practice furnish it. As of Sept. 28 the proposal was not final. And some hospital leaders doubt the program meets their needs. &quot;It&#x27;s hard to think about transformation when you&#x27;re thinking about survival,&quot; Randy Clark of Northern Light Health said, <a href="https://www.statnews.com/2026/09/14/rural-health-transformation-fund-skepticism-shortcomings-part-5-unraveled-series/" target="_blank" rel="noopener">according to STAT</a>.</p><p>What to do now</p><p>1. Find the state&#x27;s program. The Rural Health Information Hub <a href="https://www.ruralhealthinfo.org/resources/lists/rhtp" target="_blank" rel="noopener">lists every state&#x27;s program page and lead agency</a>, and <a href="https://www.nosorhplus.org/network/sorhmembers" target="_blank" rel="noopener">each state&#x27;s office of rural health</a> can point to the right contact.</p><p>2. Learn where the state stands. Whether a round is open, closed or expected, and when next year&#x27;s money arrives. CMS <a href="https://apply07.grants.gov/apply/opportunities/instructions/PKG00291485-instructions.pdf" target="_blank" rel="noopener">sets each state&#x27;s fiscal 2027 amount by Oct. 31</a>.</p><p>3. Get the federal identifiers. A Unique Entity Identifier at minimum, and a SAM.gov registration where the state requires one.</p><p>4. Tie the project to the plan. CMS <a href="https://www.medicaid.gov/resources-for-states/rural-health/rhtp-resources/RHTP-Post-Award-FAQ-09-2026.pdf" target="_blank" rel="noopener">does not let states add or swap initiatives</a>, so a technology project, AI included, has to serve one the state already has.</p><p>5. Budget inside the rules, and keep grant files from the first day. No services insurers already pay for, no new construction, and invoices, time records and outcomes kept from the start: the state must monitor its subrecipients, and CMS can recover money.</p><div class="section-label">SOURCE MATERIAL</div><ul class="items"><li class="item"><div class="cat"></div><div class="item-title"><a href="https://www.cms.gov/files/document/chapter-4-protecting-rural-health-hospitals-providers.pdf" target="_blank" rel="noopener">Congress set $10 billion a year for five years, for states only</a></div><div class="item-body">Public Law 119-21, section 71401 (July 4, 2025), added subsection (h) to section 2105 of the Social Security Act: $10 billion for each of fiscal years 2026 to 2030; only the 50 states are eligible; half of each year&#x27;s money is allotted equally and half as CMS determines; states must fund three or more of 10 listed activities; no more than 10% of a state&#x27;s allotment for administrative expenses; no state match; no administrative or judicial review of amounts withheld, reduced or recovered.</div><div class="item-src">Source: <a href="https://www.cms.gov/files/document/chapter-4-protecting-rural-health-hospitals-providers.pdf" target="_blank" rel="noopener">CMS-hosted text of the law</a></div></li><li class="item"><div class="cat"></div><div class="item-title"><a href="https://www.cms.gov/newsroom/press-releases/cms-announces-50-billion-awards-strengthen-rural-health-all-50-states" target="_blank" rel="noopener">First-year awards ranged from $147,250,806 to $281,319,361</a></div><div class="item-body">CMS announced awards to all 50 states on Dec. 29, 2025, averaging $200 million; New Jersey received the least, Texas the most and Colorado $200,105,604.</div><div class="item-src">Source: <a href="https://www.cms.gov/newsroom/press-releases/cms-announces-50-billion-awards-strengthen-rural-health-all-50-states" target="_blank" rel="noopener">CMS</a></div></li><li class="item"><div class="cat"></div><div class="item-title"><a href="https://apply07.grants.gov/apply/opportunities/instructions/PKG00291485-instructions.pdf" target="_blank" rel="noopener">CMS&#x27;s funding notice capped several kinds of spending</a></div><div class="item-body">Notice CMS-RHT-26-001: provider payments no more than 15% of a state&#x27;s award in a budget period; capital and infrastructure no more than 20%; replacing an EHR no more than 5% where a certified system was in place as of Sept. 1, 2025; new construction unallowable; the rural facility and population factors (half of the scored allocation) calculated once, the rest rescored yearly, including three technology factors (remote care services, data infrastructure and consumer-facing technology) worth 3.75% each; &quot;AI diagnostic tools in rural clinics&quot; listed as an example of emerging technology.</div><div class="item-src">Source: <a href="https://apply07.grants.gov/apply/opportunities/instructions/PKG00291485-instructions.pdf" target="_blank" rel="noopener">Funding notice</a></div></li><li class="item"><div class="cat"></div><div class="item-title"><a href="https://www.medicaid.gov/resources-for-states/rural-health/rhtp-resources/RHTP-Post-Award-FAQ-09-2026.pdf" target="_blank" rel="noopener">CMS&#x27;s Sept. 23, 2026 FAQs set the rules for spending and recovery</a></div><div class="item-body">Budget period 1 began Dec. 29, 2025, the date each state received its notice of award; &quot;Funding opportunity information should not be posted publicly until State recipients receive an approved budget&quot;; states may obligate funds only during the budget period in which they were awarded, with no extensions, and &quot;all unexpended funds are then redistributed by CMS to other States&quot;; CMS &quot;does not review State RFP/award opportunities&quot; and does not approve subawards in advance; CMS &quot;may seek to recoup 100% of the funds&quot; from a provider that does not complete a five-year service commitment when there are no extenuating circumstances; state policy commitments must be finalized by the end of 2027, or 2028 for two factors.</div><div class="item-src">Source: <a href="https://www.medicaid.gov/resources-for-states/rural-health/rhtp-resources/RHTP-Post-Award-FAQ-09-2026.pdf" target="_blank" rel="noopener">CMS FAQs</a></div></li><li class="item"><div class="cat"></div><div class="item-title"><a href="https://www.kff.org/medicaid/a-closer-look-at-the-50-billion-rural-health-transformation-program/" target="_blank" rel="noopener">KFF laid out the calendar</a></div><div class="item-body">States must obligate first-year funds by Oct. 30, 2026 and spend them by Sept. 30, 2027; the first quarterly report, due Nov. 29, 2026, should capture all first-year obligations to direct recipients; first-year awards per rural resident ranged from less than $100 in 10 states to more than $500 in eight; CMS &quot;will release progress reports to the public upon request but does not plan to do so proactively.&quot;</div><div class="item-src">Source: <a href="https://www.kff.org/medicaid/a-closer-look-at-the-50-billion-rural-health-transformation-program/" target="_blank" rel="noopener">KFF, Sept. 18, 2026</a></div></li><li class="item"><div class="cat"></div><div class="item-title"><a href="https://hcpf.colorado.gov/press-release/hcpf-opens-applications-reduce-health-care-costs" target="_blank" rel="noopener">Colorado opened a $160 million round on June 23, 2026</a></div><div class="item-body">HCPF&#x27;s request for applications closed at 11:59 p.m. Aug. 3; eligible applicants included critical access and other rural hospitals, rural health clinics, rural federally qualified health centers and look-alikes, behavioral health providers, opioid treatment programs and emergency medical service providers.</div><div class="item-src">Source: <a href="https://hcpf.colorado.gov/press-release/hcpf-opens-applications-reduce-health-care-costs" target="_blank" rel="noopener">HCPF</a></div></li><li class="item"><div class="cat"></div><div class="item-title"><a href="https://hcpf.colorado.gov/sites/hcpf/files/RHTP%20FAQs%207.30.26.pdf" target="_blank" rel="noopener">Colorado&#x27;s FAQs allowed AI tools and required federal registration</a></div><div class="item-body">&quot;AI-enabled tools, subscription platforms, and other technology solutions are allowable when they directly support approved project activities&quot;; lead applicants &quot;must maintain an active SAM.gov registration and Unique Entity ID (UEI)&quot;; awards are annual and renewable for up to five years; grant funds &quot;cannot pay for billable telehealth services.&quot;</div><div class="item-src">Source: <a href="https://hcpf.colorado.gov/sites/hcpf/files/RHTP%20FAQs%207.30.26.pdf" target="_blank" rel="noopener">HCPF FAQs</a></div></li><li class="item"><div class="cat"></div><div class="item-title"><a href="https://hcpf.colorado.gov/press-release/colorado-awards-rural-healthcare-providers" target="_blank" rel="noopener">Colorado funded 91 applicants on Sept. 28, 2026</a></div><div class="item-body">HCPF is directing $169,587,181 in program grants; it received 112 eligible applications requesting more than $250 million for 368 projects and selected 91 applicants and about 250 projects &quot;across 52 rural or frontier counties and 3 rural census tract counties&quot;; funded areas include &quot;Expanding telehealth, tele-ICU, telehospitalist services, and remote patient monitoring&quot; and &quot;Modernizing infrastructure through EHR modernization and digital health tools.&quot; CMS&#x27;s release adds EMS training across a network reaching 39 counties and whole-blood transfusions before patients reach the hospital. Neither release mentions artificial intelligence.</div><div class="item-src">Sources: <a href="https://hcpf.colorado.gov/press-release/colorado-awards-rural-healthcare-providers" target="_blank" rel="noopener">HCPF</a>, <a href="https://www.cms.gov/newsroom/press-releases/trump-administration-announces-169-million-expand-specialty-care-strengthen-emergency-services-bring" target="_blank" rel="noopener">CMS</a></div></li><li class="item"><div class="cat"></div><div class="item-title"><a href="https://governorreeves.ms.gov/governor-reeves-announces-167-rural-health-transformation-program-awards-totaling-more-than-104-million/" target="_blank" rel="noopener">Mississippi and South Carolina made their awards in mid-September</a></div><div class="item-body">Mississippi announced 167 awards totaling $104,115,146 on Sept. 14, 2026, including $537,094 to Hattiesburg Clinic &quot;to deploy ambient AI documentation to approximately 500 providers across its multispecialty network&quot;; its technology notice expected general awards of $200,000 to $400,000 and cybersecurity awards of $100,000 to $300,000 but said &quot;The State is not imposing a limit on individual award amounts,&quot; and it pays subrecipients &quot;on a reimbursement basis.&quot; South Carolina announced 228 grants totaling $167,299,900.69 on Sept. 15 from 712 applications received by June 1; its Connections to Care round offered $100,000 to $2,000,000 for health IT upgrades and $250,000 to $5,000,000 for remote monitoring and assistive technology.</div><div class="item-src">Sources: <a href="https://governorreeves.ms.gov/governor-reeves-announces-167-rural-health-transformation-program-awards-totaling-more-than-104-million/" target="_blank" rel="noopener">Governor Reeves</a>, <a href="https://mississippirhtp.com/wp-content/uploads/2026/06/ada_2026-MS-RTG-Program-NOFO-Version-2-061726.pdf" target="_blank" rel="noopener">Mississippi NOFO</a>, <a href="https://governor.sc.gov/news/2026-09/south-carolina-announces-recipients-rural-health-transformation-program-funding" target="_blank" rel="noopener">Governor McMaster</a>, <a href="https://scdhhs.gov/sites/dhhs/files/%282026-04-02%29%20Connections%20to%20Care%20SCDHHS-26-001.pdf" target="_blank" rel="noopener">SCDHHS</a></div></li><li class="item"><div class="cat"></div><div class="item-title"><a href="https://www.fiercehealthcare.com/health-tech/states-are-betting-millions-remote-patient-monitoring-providers-tech-groups-say" target="_blank" rel="noopener">State bets on remote monitoring meet a Medicare proposal</a></div><div class="item-body">22 states have announced roughly $240 million in funding for remote patient monitoring and 35 states more than $2.4 billion for broader technology, according to an Alliance for Connected Care analysis; the CY2027 physician fee schedule proposal would pay for RPM and RTM only when furnished by clinical staff employed by the practice, from Jan. 1, 2027.</div><div class="item-src">Source: <a href="https://www.fiercehealthcare.com/health-tech/states-are-betting-millions-remote-patient-monitoring-providers-tech-groups-say" target="_blank" rel="noopener">Fierce Healthcare, Sept. 14, 2026</a></div></li><li class="item"><div class="cat"></div><div class="item-title"><a href="https://kffhealthnews.org/rural-health/rural-health-transformation-program-federal-cms-clawbacks-state-plans/" target="_blank" rel="noopener">CMS has said it will take money back</a></div><div class="item-body">Dr. Oz, at a June event in Washington: &quot;We will take the money back&quot; if states &quot;don&#x27;t abide by what they wrote, if they don&#x27;t do a good job.&quot;</div><div class="item-src">Source: <a href="https://kffhealthnews.org/rural-health/rural-health-transformation-program-federal-cms-clawbacks-state-plans/" target="_blank" rel="noopener">KFF Health News, June 16, 2026</a></div></li></ul>]]></content:encoded></item>
<item><title>Oura IPO draws four times the orders; Senate panel advances Klomp; Sentara reads coronary plaque with AI; radiology groups build their own AI</title><link>https://physicianintheloop.org/posts/2026-09-28/</link><guid isPermaLink="true">https://physicianintheloop.org/posts/2026-09-28/</guid><pubDate>Mon, 28 Sep 2026 07:00:00 -0600</pubDate><dc:creator>Ryan Gillum, MD</dc:creator><description>Oura&#x27;s initial public offering drew about four times as many orders as shares available, Bloomberg reported Friday, ahead of pricing set for Tuesday that would value the smart-ring maker at up to $14.1 billion.</description><content:encoded><![CDATA[<div class="section-label">THE SHORT READ</div><div class="intro"><p>Oura&#x27;s initial public offering drew about four times as many orders as shares available, Bloomberg reported Friday, ahead of pricing set for Tuesday that would value the smart-ring maker at up to $14.1 billion.</p><p>The Senate Finance Committee voted 15-12 on Thursday to send Chris Klomp, the Health and Human Services official who has overseen Medicare, to a full Senate vote as HHS deputy secretary. Cardiologists at Sentara Health described using AI to classify coronary plaque on CT, radiology practices are building their own AI tools, STAT reported, and a Wolters Kluwer Health survey found 26% of patients who researched symptoms with AI sought care sooner.</p><p>The weekend brought few new developments. California Gov. Gavin Newsom has until Sept. 30 to act on the health AI bills <a href="https://www.transparencycoalition.ai/news/ai-legislative-update-september25-2026" target="_blank" rel="noopener">awaiting his signature</a>, including AB 1979, SB 903 and SB 503; <a href="https://www.gov.ca.gov/newsroom/" target="_blank" rel="noopener">his office&#x27;s releases through Sept. 27</a> announced no action on them.</p></div><div class="section-label details-label">THE DETAILS</div><ul class="items"><li class="item"><div class="cat">Money  <span class="when">Sept 25, 2026</span></div><div class="item-title"><a href="https://finance.yahoo.com/markets/stocks/articles/smart-ring-maker-oura-ipo-193200858.html" target="_blank" rel="noopener">Oura IPO draws about four times as many orders as shares offered; pricing set for Sept. 29 at up to $14.1 billion valuation</a></div><div class="item-body">The offering of 50 million shares at $40 to $44 was about four times oversubscribed, Bloomberg reported Sept. 25. Pricing is set for Sept. 29, with trading on the Nasdaq Global Select Market under the symbol OURA. The company is selling 13.5 million shares, and existing holders including Forerunner Ventures and Lifeline Ventures are selling 36.5 million. The top of the range values Oura at $14.1 billion, or about $15 billion fully diluted, and the deal would raise up to $2.2 billion, according to the report. Goldman Sachs, Morgan Stanley, JPMorgan Chase, Allen &amp; Co. and Jefferies are the underwriters.</div><div class="item-src">Source: <a href="https://finance.yahoo.com/markets/stocks/articles/smart-ring-maker-oura-ipo-193200858.html" target="_blank" rel="noopener">Bloomberg (Yahoo Finance)</a></div></li><li class="item"><div class="cat">Regulation  <span class="when">Sept 24, 2026</span></div><div class="item-title"><a href="https://www.aha.org/news/headline/2026-09-24-senate-finance-committee-advances-nomination-chris-klomp-hhs-deputy-secretary" target="_blank" rel="noopener">Senate Finance Committee advances Klomp, who said WISeR &quot;must be done appropriately,&quot; to full vote for HHS deputy secretary</a></div><div class="item-body">The committee voted 15-12 on Sept. 24, with Sen. Sheldon Whitehouse, a Rhode Island Democrat, joining all Republicans, <a href="https://www.statnews.com/2026/09/24/chris-klomp-vote-senate-finance-committee-hhs-deputy-secretary/" target="_blank" rel="noopener">STAT</a> and <a href="https://rollcall.com/2026/09/24/senate-finance-approves-klomp-nomination-for-hhs-deputy/" target="_blank" rel="noopener">Roll Call</a> reported. Klomp, a former health IT executive, has overseen Medicare, and the nomination now goes to the full Senate, according to the American Hospital Association. At a Sept. 16 hearing of the Senate Health, Education, Labor and Pensions Committee, he said of Medicare&#x27;s AI-assisted prior-authorization pilot, the Wasteful and Inappropriate Service Reduction model, that &quot;it must be done appropriately, or it should not expand,&quot; according to Sen. Patty Murray&#x27;s office. Whitehouse said he backed Klomp because he is &quot;good on payment issues,&quot; STAT reported. Roll Call&#x27;s account of the vote describes debate over vaccine policy and drug pricing deals and no discussion of AI.</div><div class="item-src">Sources: <a href="https://www.aha.org/news/headline/2026-09-24-senate-finance-committee-advances-nomination-chris-klomp-hhs-deputy-secretary" target="_blank" rel="noopener">AHA News</a>, <a href="https://www.statnews.com/2026/09/24/chris-klomp-vote-senate-finance-committee-hhs-deputy-secretary/" target="_blank" rel="noopener">STAT</a>, <a href="https://rollcall.com/2026/09/24/senate-finance-approves-klomp-nomination-for-hhs-deputy/" target="_blank" rel="noopener">Roll Call</a>, <a href="https://www.murray.senate.gov/at-help-hearing-murray-grills-trump-nominees-on-ai-denying-seniors-health-care-abortion-bans-killing-women/" target="_blank" rel="noopener">Sen. Patty Murray (Sept. 16 hearing)</a></div></li><li class="item"><div class="cat">Deployment  <span class="when">Sept 25, 2026</span></div><div class="item-title"><a href="https://www.healthcareitnews.com/news/inside-sentara-healths-ai-assisted-approach-coronary-ct" target="_blank" rel="noopener">Sentara cardiologists use AI plaque analysis on coronary CT to guide therapy; system reports fewer invasive angiograms but gives no figures</a></div><div class="item-body">Sentara Health, based in Virginia, uses AI-assisted analysis of coronary CT angiography to sort plaque into calcified, noncalcified and low-density noncalcified types and to measure its burden, Healthcare IT News reported Sept. 25. Dr. Joshua Cohen, an advanced imaging and structural heart cardiologist, said the AI serves to &quot;clarify hemodynamic significance, increase workflow efficiency, and reduce inter-reader variability&quot; for intermediate lesions, and that treatment intensification decisions draw on the plaque findings. The system&#x27;s cardiologists described a downward trend in invasive coronary angiography and earlier detection of subclinical disease; the article gives no numbers and does not name the software. Cohen said &quot;output is highly dependent on input&quot; and called standardized, high-quality acquisition protocols critical.</div><div class="item-src">Source: <a href="https://www.healthcareitnews.com/news/inside-sentara-healths-ai-assisted-approach-coronary-ct" target="_blank" rel="noopener">Healthcare IT News</a></div></li><li class="item"><div class="cat">Deployment  <span class="when">Sept 24, 2026</span></div><div class="item-title"><a href="https://www.statnews.com/2026/09/24/radiology-ai-blurred-line-between-tech-development-clinical-practice/" target="_blank" rel="noopener">Radiology practices acquire and tune their own AI and market themselves to recruits and hospitals as &quot;AI-native,&quot; STAT reports</a></div><div class="item-body">Radiology groups are acquiring and customizing AI for in-house use rather than waiting for outside developers, and some present themselves as &quot;AI-native&quot; to employees and hospital customers, STAT reported Sept. 24 in a story that says the trend blurs the line between technology development and clinical practice. The report notes that Geoffrey Hinton&#x27;s decade-old prediction that AI would surpass radiologists within five to 10 years has passed its deadline. <a href="https://www.statnews.com/2026/09/24/the-rise-of-the-ai-native-radiology-practice-health-tech/" target="_blank" rel="noopener">STAT&#x27;s newsletter</a> says startups making the case argue that owning a practice streamlines AI development. One of them, Epsilon Health, which pairs AI with physician oversight to speed image interpretation, raised $27.6 million this month from AlleyCorp, Uncork Capital and others, according to Fierce Healthcare&#x27;s funding tracker. The full STAT story is behind a paywall.</div><div class="item-src">Sources: <a href="https://www.statnews.com/2026/09/24/radiology-ai-blurred-line-between-tech-development-clinical-practice/" target="_blank" rel="noopener">STAT</a>, <a href="https://www.statnews.com/2026/09/24/the-rise-of-the-ai-native-radiology-practice-health-tech/" target="_blank" rel="noopener">STAT Health Tech newsletter</a>, <a href="https://www.fiercehealthcare.com/health-tech/fierce-healthcare-fundraising-tracker-26" target="_blank" rel="noopener">Fierce Healthcare funding tracker</a></div></li><li class="item"><div class="cat">Evidence  <span class="when">Sept 24, 2026</span></div><div class="item-title"><a href="https://www.financialcontent.com/article/bizwire-2026-9-24-wolters-kluwer-survey-patients-concerns-about-medical-ai-reveal-deep-trust-gaps-across-age-gender-and-geography" target="_blank" rel="noopener">Wolters Kluwer survey: 26% of patients who researched health questions with AI sought care sooner; 89% want human expert validation</a></div><div class="item-body">Ipsos surveyed 254 U.S. patients and 355 clinicians, 203 physicians and 152 nurses, for Wolters Kluwer Health from March 11 to 14, the company said in a Sept. 24 release. Among patients, 54% used AI to research medication side effects, 52% used it to look up a diagnosis and 26% said they sought medical care sooner after AI research. Some 74% worried about the privacy of their health information, including 83% of rural patients, 89% called human expert validation of AI answers important and 81% expected their health system to formally approve AI tools used in clinical decisions. Confidence in AI reliability was 81% among men and 66% among women.</div><div class="item-src">Source: <a href="https://www.financialcontent.com/article/bizwire-2026-9-24-wolters-kluwer-survey-patients-concerns-about-medical-ai-reveal-deep-trust-gaps-across-age-gender-and-geography" target="_blank" rel="noopener">Wolters Kluwer Health release</a></div></li><li class="item"><div class="cat">Workforce  <span class="when">Sept 25, 2026</span></div><div class="item-title"><a href="https://www.healthcareitnews.com/news/anz/gp-trainees-tapped-co-design-clinical-ai" target="_blank" rel="noopener">Australia&#x27;s GP registrars&#x27; association enlists trainees to help design Lyrebird Health&#x27;s clinical AI tools</a></div><div class="item-body">General Practice Registrars Australia, which has about 22,000 members, will name up to nine members as clinical ambassadors and form a national working group with Lyrebird Health, Healthcare IT News reported Sept. 25. Members get 12 months of free access to Lyrebird Pro starting in 2027, along with training on safe practice, billing and portfolio careers, and the ambassadors will give structured feedback directly to the company&#x27;s clinical and engineering teams. &quot;They are forming the clinical and technology habits that will shape how medicine is practised for decades to come,&quot; said Dr. Ray Boyapati of Lyrebird.</div><div class="item-src">Source: <a href="https://www.healthcareitnews.com/news/anz/gp-trainees-tapped-co-design-clinical-ai" target="_blank" rel="noopener">Healthcare IT News</a></div></li></ul>]]></content:encoded></item>
<item><title>Equal pay for equal results</title><link>https://physicianintheloop.org/specials/access-primary-care/</link><guid isPermaLink="true">https://physicianintheloop.org/specials/access-primary-care/</guid><pubDate>Mon, 28 Sep 2026 07:00:00 -0600</pubDate><dc:creator>Physician in the Loop</dc:creator><description>Medicare now pays technology firms for results, and a smart-ring maker will promote one of them to its members. Primary care deserves the same deal, or Medicare will pay twice for fragmented care.</description><content:encoded><![CDATA[<p><img src="https://physicianintheloop.org/images/specials/access-primary-care.jpg?v=fb16c01741" alt="A balance scale tipped toward a smartphone with a glowing amber screen in its lower pan, with a stethoscope in the higher pan." width="1200" height="630"></p><p>On September 29 investors are due to put a price on Oura, the maker of a smart ring with <a href="https://www.fiercehealthcare.com/health-tech/oura-counsel-health-cms-access-model" target="_blank" rel="noopener">5 million paying members</a>. At the top of its range the offering would <a href="https://finance.yahoo.com/markets/stocks/articles/smart-ring-maker-oura-ipo-193200858.html" target="_blank" rel="noopener">value the company at $14.1 billion</a>, and it has drawn about four times as many orders as there are shares. Oura&#x27;s <a href="https://www.sec.gov/Archives/edgar/data/2133022/000119312526381855/d119865ds1.htm" target="_blank" rel="noopener">prospectus</a> describes a market that &quot;begins with wearables and extends into preventative healthcare,&quot; and part of that extension runs through Medicare. On September 17 Counsel Health, which calls itself <a href="https://www.businesswire.com/news/home/20260917750816/en/Counsel-Health-Joins-ACCESS-Model-to-Bring-AI-Native-Chronic-Care-to-Medicare-Beneficiaries" target="_blank" rel="noopener">&quot;the AI-native primary care company,&quot;</a> said it was taking part in ACCESS, a Medicare program that pays for measurable results in chronic disease. From early next year its doctors, working with its AI, will treat high blood pressure, obesity, high cholesterol and prediabetes at no out-of-pocket cost to eligible patients. Oura will promote the service in its app, and its chief medical officer says the program will let the company <a href="https://www.businesswire.com/news/home/20260917750816/en/Counsel-Health-Joins-ACCESS-Model-to-Bring-AI-Native-Chronic-Care-to-Medicare-Beneficiaries" target="_blank" rel="noopener">&quot;study that model at scale.&quot;</a></p><p>The Counsel deal is small beside Oura&#x27;s listing, but it belongs to a pattern. Whoop and Withings, two other makers of consumer health devices, have physician groups <a href="https://www.cms.gov/priorities/innovation/access-model-accepted-applicants" target="_blank" rel="noopener">on Medicare&#x27;s list of accepted participants</a>, alongside WeightWatchers, Noom and Alphabet&#x27;s Verily; <a href="https://www.cms.gov/newsroom/press-releases/cms-adds-medicare-options-help-people-manage-substance-use-disorder-heart-failure-other-common" target="_blank" rel="noopener">about 160 organizations</a> are taking part, and health plans covering 165 million Americans have pledged to pay in a similar way. A second front door to chronic care is being built, and it opens on a phone. Medicare pays the firms behind it for results and keeps paying the patient&#x27;s own primary care practice by the visit. Paying for results is the right idea, but paying only newcomers for them will fragment care, add to spending and leave primary care with the patients hardest to help. Medicare should offer practices the same terms.</p><p>ACCESS, which <a href="https://www.cms.gov/newsroom/blog/improving-access-technology-supported-care-outcome-aligned-payments" target="_blank" rel="noopener">began in July</a>, pays a fixed yearly fee for each patient, in monthly installments, and <a href="https://www.cms.gov/priorities/innovation/files/access-payments-amts-perf-targets.pdf" target="_blank" rel="noopener">holds back half of Medicare&#x27;s share</a> until the year&#x27;s results are in. In Counsel&#x27;s track the fee is $360 for a patient&#x27;s first year. To be paid in full, at least half of a firm&#x27;s patients must finish the year and meet their targets, such as a systolic pressure below 130 or a drop of 15 points. Firms may waive the part of the fee that patients normally owe, which lets them offer care at no out-of-pocket cost. Patients sign up <a href="https://www.cms.gov/priorities/innovation/access-primary-care-providers-referring-clinicians" target="_blank" rel="noopener">by phone or online</a>, without a referral; their doctor gets an update once care begins.</p><p>Medicare assures primary care doctors that the firms <a href="https://www.cms.gov/priorities/innovation/access-primary-care-providers-referring-clinicians" target="_blank" rel="noopener">&quot;do not replace your role as the patient&#x27;s primary clinician.&quot;</a> It pays that role far less. A doctor who reviews a firm&#x27;s update and acts on it may bill <a href="https://www.cms.gov/priorities/innovation/access-primary-care-providers-referring-clinicians" target="_blank" rel="noopener">$30, up to three times a year</a>, which, with a small one-time fee for helping a patient get set up, comes to little more than a quarter of the firm&#x27;s first-year fee. The visits at which she checks the same blood pressure are still paid one by one, from a fee schedule whose basic rate <a href="https://www.cms.gov/newsroom/fact-sheets/calendar-year-cy-2027-medicare-physician-fee-schedule-proposed-rule" target="_blank" rel="noopener">Medicare has proposed to lower next year</a>. And the firm&#x27;s fee <a href="https://www.cms.gov/priorities/innovation/files/access-payments-amts-perf-targets.pdf" target="_blank" rel="noopener">shrinks if too many of its patients get listed services for the same condition from other clinicians</a>, so care that another clinician starts, the family doctor included, can count as duplication.</p><p>A practice could in principle join ACCESS itself, since <a href="https://www.cms.gov/priorities/innovation/files/access-rfa.pdf" target="_blank" rel="noopener">almost any organization enrolled in Medicare&#x27;s Part B</a> may apply. But a participant, and any practice affiliated with it, <a href="https://www.cms.gov/priorities/innovation/innovation-models/access" target="_blank" rel="noopener">may not bill Medicare&#x27;s ordinary fees</a> for its enrolled patients during their year of care, and claims systems <a href="https://www.hfma.org/wp-content/uploads/2026/01/510119_Advancing_Chronic_Care_with_Effective_Scalable_Solutions_ACCESS_Mod.pdf" target="_blank" rel="noopener">will block such bills automatically</a>. The rule suits a firm with no clinic. A practice that sees the same patients in person would have to give up their visit fees to collect the outcome payment. Aledade, whose <a href="https://aledade.com/newsroom/aledade-news/value-based-care-network-grows-2026" target="_blank" rel="noopener">network is made up of primary care practices and health centers</a>, has two entities on the list. Still, the design favors the firm that reaches a patient&#x27;s phone over the doctor who knows her history.</p><p>Dr. Mehmet Oz, who runs Medicare and Medicaid, has been frank about how payment shapes what technology does. <a href="https://www.healthcaredive.com/news/ai-will-inflate-healthcare-costs-before-lowering-them-oz-says/831277/" target="_blank" rel="noopener">&quot;Short term, AI is going to be inflationary because it&#x27;s going to turbocharge the ability of the current billing systems to work more effectively,&quot;</a> he told an Oracle conference in September. The Blue Cross Blue Shield Association says hospitals&#x27; AI coding <a href="https://www.fiercehealthcare.com/finance/hospitals-use-ai-coding-tools-cost-bcbsa-plans-942m-more-similar-care-analysis" target="_blank" rel="noopener">added $942 million to its plans&#x27; costs over two years</a> with no matching change in care, which hospitals dispute; Hartford HealthCare says autonomous coding, piloted with ambient documentation, <a href="https://www.beckershospitalreview.com/finance/revenue-cycle-management/hartford-healthcare-boosts-primary-care-revenue-17-with-autonomous-coding/" target="_blank" rel="noopener">raised its primary care revenue by 17 percent</a>, and complaints rose with patients&#x27; bills. At an event for ACCESS on September 15, Dr. Oz said Medicare was paying <a href="https://www.healthcaredive.com/news/cms-add-more-chronic-conditions-access-model-2027/830506/" target="_blank" rel="noopener">&quot;for outcomes, not for effort or process or some surrogate,&quot;</a> and that <a href="https://www.medicaleconomics.com/view/dr-oz-on-access-let-s-treat-patients-instead-of-just-checking-boxes" target="_blank" rel="noopener">&quot;the most expensive health care is bad quality care.&quot;</a></p><p>He is right on both counts, which makes the design of ACCESS odd. In practice it hands the outcome contract to newcomers and leaves the practices that already manage these diseases on the fee-for-service billing he expects AI to inflate. It even reaches into his preferred remedy, the accountable care organization, which is rewarded when its patients&#x27; total costs fall. <a href="https://www.cms.gov/priorities/innovation/access-technical-frequently-asked-questions" target="_blank" rel="noopener">From 2028</a> the firms&#x27; fees will count in the benchmarks and spending by which such organizations are judged, and <a href="https://www.milliman.com/en/insight/cmmi-access-model-for-providers-life-science-acos" target="_blank" rel="noopener">analysts at Milliman</a>, an actuarial firm, call that a risk for them unless the firms&#x27; patients end up costing less.</p><p>Whether the firms earn their fees depends on what they do. The Peterson Health Technology Institute, an independent evaluator, found that hypertension programs that manage patients&#x27; medication <a href="https://phti.org/assessment/digital-hypertension-management-solutions/" target="_blank" rel="noopener">lower blood pressure quickly and meaningfully, better than usual care</a>, and should save money in the long run; programs that only transmit readings or coach behavior do not, and all of them raise spending at first. In its review, digital diabetes tools showed <a href="https://phti.org/assessment/digital-diabetes-management-tools/" target="_blank" rel="noopener">no meaningful clinical benefit and higher net spending</a>. The evidence Counsel offered with its announcement was about satisfaction: members who saw its doctors <a href="https://www.businesswire.com/news/home/20260917750816/en/Counsel-Health-Joins-ACCESS-Model-to-Bring-AI-Native-Chronic-Care-to-Medicare-Beneficiaries" target="_blank" rel="noopener">rated their care 4.6 out of 5</a>. Satisfaction matters, but Medicare is paying for blood pressure.</p><p>History suggests that convenient care is more often added to other care than substituted for it. When RAND studied direct-to-consumer telehealth for respiratory infections, <a href="https://www.rand.org/news/press/2017/03/06.html" target="_blank" rel="noopener">only about one visit in eight replaced a visit elsewhere</a>, and spending rose. Enrollment in Medicare&#x27;s remote patient monitoring <a href="https://www.aha.org/news/headline/2024-09-27-oig-more-oversight-needed-remote-patient-monitoring-medicare" target="_blank" rel="noopener">grew more than tenfold in three years</a>, often without all the parts of the service. The Congressional Budget Office found that Medicare&#x27;s innovation center, which runs ACCESS, <a href="https://www.cbo.gov/publication/59612" target="_blank" rel="noopener">raised federal spending by $5.4 billion</a> in its first decade instead of cutting it. On the evidence, ACCESS money is well spent when a firm adjusts the drugs of patients whose disease is out of control, and wasted on monitoring, coaching and convenience for patients who were doing well.</p><p>Paying for results has its own trap: it rewards whoever enrolls the patients easiest to improve. The companies say <a href="https://www.businesswire.com/news/home/20260917750816/en/Counsel-Health-Joins-ACCESS-Model-to-Bring-AI-Native-Chronic-Care-to-Medicare-Beneficiaries" target="_blank" rel="noopener">a fifth of Oura&#x27;s members aged 65 and over are obese</a>; among all Americans aged 60 and over, <a href="https://www.cdc.gov/nchs/products/databriefs/db508.htm" target="_blank" rel="noopener">the CDC counts nearly two in five</a>. People who buy a smart ring and pay for a membership are not typical of Medicare&#x27;s patients, and a firm that recruits them will hit its targets more easily than a practice that treats everyone, including the patient with five diseases and no smartphone. Yet ACCESS asks <a href="https://www.cms.gov/priorities/innovation/files/access-payments-amts-perf-targets.pdf" target="_blank" rel="noopener">the same share of patients</a> to reach their targets whoever a participant enrolls. Unless that changes, Medicare will be paying a bonus for selection.</p><p>The strongest objection is that primary care has had its chance: <a href="https://www.cdc.gov/high-blood-pressure/data-research/facts-stats/index.html" target="_blank" rel="noopener">only about one American adult in four with high blood pressure has it under control</a>. If a firm with a ring, an app and doctors on call does better, patients gain. <a href="https://www.cms.gov/newsroom/press-releases/cms-adds-medicare-options-help-people-manage-substance-use-disorder-heart-failure-other-common" target="_blank" rel="noopener">Eighteen clinical and patient societies</a> have backed Medicare&#x27;s push for technology-supported chronic care, and the American Medical Association&#x27;s chief executive <a href="https://www.ama-assn.org/practice-management/payment-delivery-models/cms-access-model-launches-july-what-doctors-should-know" target="_blank" rel="noopener">called ACCESS &quot;an important step.&quot;</a> That is a case for paying for results wherever they are achieved. A payment that makes a firm control blood pressure can make a practice do so too, and the practice already has the patient&#x27;s history, medication list and trust. Primary care gets <a href="https://thepcc.org/news/2025-primary-care-scorecard/" target="_blank" rel="noopener">about 3.4 percent of Medicare&#x27;s spending</a>; paying others for its most measurable work will not raise that.</p><p>Medicare should let practices earn the same outcome payment for their own patients while still billing for their visits. It should adjust targets for the patients each participant enrolls, and show in the directory of results it <a href="https://www.cms.gov/newsroom/blog/improving-access-technology-supported-care-outcome-aligned-payments" target="_blank" rel="noopener">plans to publish</a> how each participant&#x27;s patients were recruited. It should require firms to tell a patient&#x27;s clinician before taking over her blood pressure, and pay enough for acting on their updates to cover the work. Before the fees count against accountable care organizations, it should publish an independent count of what ACCESS adds to total spending. Counsel and Oura should say whether and how Oura is paid for promoting a Medicare service; their announcement did not. And doctors whose patients enroll should read the updates, bill for acting on them and remain the clinician who sees the whole patient.</p><p>Dr. Oz has asked why Medicare should have doctors <a href="https://www.medicaleconomics.com/view/dr-oz-on-access-let-s-treat-patients-instead-of-just-checking-boxes" target="_blank" rel="noopener">&quot;check boxes&quot;</a> when it could ask whether they found a problem, treated it and made it better. Under ACCESS a firm that met its patient through a ring will be asked that question and paid for the answer. The doctor who found the problem in the first place will still be checking the boxes.</p><div class="section-label">SOURCE MATERIAL</div><ul class="items"><li class="item"><div class="cat"></div><div class="item-title"><a href="https://www.businesswire.com/news/home/20260917750816/en/Counsel-Health-Joins-ACCESS-Model-to-Bring-AI-Native-Chronic-Care-to-Medicare-Beneficiaries" target="_blank" rel="noopener">Counsel Health joins ACCESS; care starts in early 2027, with Oura promoting it to members</a></div><div class="item-body">Counsel Health, which describes itself as the AI-native primary care company, announced on September 17 its participation in the ACCESS model&#x27;s early cardio-kidney-metabolic (eCKM) track. Starting in early 2027 it will deliver care for hypertension, obesity, hyperlipidemia and/or prediabetes at no out-of-pocket cost to eligible Medicare beneficiaries across nearly all U.S. states. &quot;As a technology and marketing partner, the Oura App will promote Counsel&#x27;s ACCESS program to Oura Members and connect interested Members with Counsel,&quot; the release said; the companies have been partners since May, and members who saw a physician rated their care experience 4.6 out of 5. The release says 20 percent of Oura members aged 65 and over have a BMI of 30 or higher; the CDC&#x27;s national survey for August 2021 to August 2023 found obesity in 38.9 percent of adults aged 60 and older. Fierce Healthcare reported that Oura has 5 million paid members. Counsel Medical Group, P.A. is on CMS&#x27;s list of accepted ACCESS applicants. The announcement did not describe financial terms between the companies.</div><div class="item-src">Sources: <a href="https://www.businesswire.com/news/home/20260917750816/en/Counsel-Health-Joins-ACCESS-Model-to-Bring-AI-Native-Chronic-Care-to-Medicare-Beneficiaries" target="_blank" rel="noopener">Counsel Health release (Business Wire)</a>, <a href="https://www.fiercehealthcare.com/health-tech/oura-counsel-health-cms-access-model" target="_blank" rel="noopener">Fierce Healthcare</a>, <a href="https://www.cms.gov/priorities/innovation/access-model-accepted-applicants" target="_blank" rel="noopener">CMS (accepted ACCESS applicants)</a>, <a href="https://www.cdc.gov/nchs/products/databriefs/db508.htm" target="_blank" rel="noopener">CDC (NCHS Data Brief 508)</a></div></li><li class="item"><div class="cat"></div><div class="item-title"><a href="https://finance.yahoo.com/markets/stocks/articles/smart-ring-maker-oura-ipo-193200858.html" target="_blank" rel="noopener">Oura&#x27;s IPO would value it at up to $14.1 billion; its prospectus pitches preventive health care</a></div><div class="item-body">Oura and selling shareholders are offering 50 million shares at $40 to $44 each, to trade on the Nasdaq Global Select Market under the symbol OURA; the IPO is set to price on September 29. At the top of the range the company would have a market value of $14.1 billion and a fully diluted valuation of about $15 billion, and the offering would raise as much as $2.2 billion; it has drawn about four times as many orders as there are shares available, Bloomberg reported September 25. The S-1 registration statement, filed September 3 and amended September 21, reports 5.0 million paid members at June 30, 2026, and revenue of $1,214.5 million in the nine months to June 30, up 74 percent from $697.6 million a year earlier; membership revenue was $240.5 million, against $108.8 million. It describes &quot;a large and expanding market opportunity that begins with wearables and extends into preventative healthcare&quot; and refers to &quot;our current marketing of certain of our products and product features as general wellness products that we believe are not actively subject to the medical device regulatory requirements&quot; of the FDA. The filings mention Counsel Health. Fierce Healthcare reported that Oura&#x27;s 2024 partnership with Essence Healthcare gives some Medicare Advantage plan members an Oura Ring and its app at no cost.</div><div class="item-src">Sources: <a href="https://finance.yahoo.com/markets/stocks/articles/smart-ring-maker-oura-ipo-193200858.html" target="_blank" rel="noopener">Bloomberg (Yahoo Finance)</a>, <a href="https://www.sec.gov/Archives/edgar/data/2133022/000119312526381855/d119865ds1.htm" target="_blank" rel="noopener">SEC (Oura S-1)</a>, <a href="https://www.fiercehealthcare.com/digital-health/smart-ring-maker-oura-files-go-public-pitching-investors-ai-driven-preventive-health" target="_blank" rel="noopener">Fierce Healthcare (S-1 coverage)</a></div></li><li class="item"><div class="cat"></div><div class="item-title"><a href="https://www.cms.gov/priorities/innovation/files/access-payments-amts-perf-targets.pdf" target="_blank" rel="noopener">ACCESS pays $360 for a first year in the eCKM track, with half of Medicare&#x27;s share withheld until results are in</a></div><div class="item-body">CMS&#x27;s payment amounts for July 5, 2026 to December 31, 2027 set annual allowed amounts per beneficiary of $360 for the initial period and $180 for follow-on periods in the eCKM track (hypertension, dyslipidemia, obesity, prediabetes); $420 and $210 in the cardio-kidney-metabolic track; $180 in the musculoskeletal track; and $180 and $90 in the behavioral health track, with a $15 rural add-on in the eCKM and CKM initial periods. Allowed amounts include the beneficiary&#x27;s 20 percent coinsurance, which participants may waive under a uniform policy. The sum of monthly payments may not exceed 50 percent of the Medicare portion; the rest is withheld and reconciled after the 12-month care period. Full payment requires at least 50 percent of aligned beneficiaries, for every participant, to complete the care period and meet all targets (for hypertension, a final systolic pressure below 130 mm Hg or a 15 mm Hg reduction). Payments are reduced, on a prorated basis, when fewer than 90 percent of aligned beneficiaries are free of listed substitute services for the same condition from other Medicare providers. CMS will maintain a directory of participating organizations and their risk-adjusted outcomes.</div><div class="item-src">Sources: <a href="https://www.cms.gov/priorities/innovation/files/access-payments-amts-perf-targets.pdf" target="_blank" rel="noopener">CMS (ACCESS payments and performance targets)</a>, <a href="https://www.cms.gov/priorities/innovation/files/access-rfa.pdf" target="_blank" rel="noopener">CMS (ACCESS Request for Applications)</a>, <a href="https://www.cms.gov/newsroom/blog/improving-access-technology-supported-care-outcome-aligned-payments" target="_blank" rel="noopener">CMS blog (December 19, 2025)</a></div></li><li class="item"><div class="cat"></div><div class="item-title"><a href="https://www.cms.gov/priorities/innovation/access-primary-care-providers-referring-clinicians" target="_blank" rel="noopener">Primary care clinicians can bill a $30 co-management payment; participants may not bill fee-for-service for enrolled patients</a></div><div class="item-body">CMS says the co-management payment is $30 per service, subject to geographic adjustment and sequestration, billable up to three times per 12-month care period per patient per ACCESS track by a practitioner who reviews a documented ACCESS care update and performs at least one related care-coordination activity, with a one-time $10 add-on for help with onboarding and initial setup and no beneficiary cost-sharing. Patients can enroll directly with an ACCESS participant by phone or online; participants must send the primary care provider structured updates at care initiation, on clinical escalation and at the end of each care period. ACCESS participants and their affiliated entities may not submit Medicare fee-for-service claims for aligned beneficiaries during active care periods, and claims systems will suppress such billing automatically. CMS anticipates no impact from ACCESS payments on Shared Savings Program and ACO REACH benchmark and performance year calculations in 2026 and 2027; beginning in 2028, those expenditures will be included. Milliman called ACCESS costs a risk for ACOs &quot;insofar as they are not offset by reduced utilization and expenditures from those beneficiaries.&quot; CMS&#x27;s proposed 2027 physician fee schedule would lower the conversion factor by 1.19 percent for qualifying APM participants and 1.68 percent for others.</div><div class="item-src">Sources: <a href="https://www.cms.gov/priorities/innovation/access-primary-care-providers-referring-clinicians" target="_blank" rel="noopener">CMS (ACCESS for primary care providers)</a>, <a href="https://www.cms.gov/priorities/innovation/innovation-models/access" target="_blank" rel="noopener">CMS (ACCESS model page)</a>, <a href="https://www.cms.gov/priorities/innovation/access-technical-frequently-asked-questions" target="_blank" rel="noopener">CMS (ACCESS technical FAQ)</a>, <a href="https://www.hfma.org/wp-content/uploads/2026/01/510119_Advancing_Chronic_Care_with_Effective_Scalable_Solutions_ACCESS_Mod.pdf" target="_blank" rel="noopener">CMS model overview (HFMA)</a>, <a href="https://www.milliman.com/en/insight/cmmi-access-model-for-providers-life-science-acos" target="_blank" rel="noopener">Milliman</a>, <a href="https://www.cms.gov/newsroom/fact-sheets/calendar-year-cy-2027-medicare-physician-fee-schedule-proposed-rule" target="_blank" rel="noopener">CMS (2027 physician fee schedule proposed rule)</a></div></li><li class="item"><div class="cat"></div><div class="item-title"><a href="https://www.cms.gov/newsroom/press-releases/cms-adds-medicare-options-help-people-manage-substance-use-disorder-heart-failure-other-common" target="_blank" rel="noopener">About 160 organizations take part in ACCESS; payers covering 165 million pledge to align</a></div><div class="item-body">CMS said on September 15 that 160 organizations were participating in ACCESS at launch, that three out of four people with Medicare qualify for at least one track, that heart failure, COPD, substance use disorder and tobacco cessation tracks start in spring 2027, that 18 clinical and patient societies have expressed support for its efforts on technology-supported care for chronic conditions, and that major health payers representing 165 million Americans with Medicare Advantage, Medicaid and private plans have pledged to adopt an outcomes-based payment structure aligned to ACCESS. CMS&#x27;s list of accepted applicants includes WHOOP Physician Services, Withings Medical Group, Weight Watchers, Noom, Verily Health (which Healthcare Dive describes as Alphabet-owned), Doctronic, Headspace and two Aledade Care Solutions entities. Dr. John Whyte, the AMA&#x27;s chief executive, called ACCESS &quot;an important step toward bringing new, effective digital health tools into everyday care for Medicare patients.&quot;</div><div class="item-src">Sources: <a href="https://www.cms.gov/newsroom/press-releases/cms-adds-medicare-options-help-people-manage-substance-use-disorder-heart-failure-other-common" target="_blank" rel="noopener">CMS (September 15 release)</a>, <a href="https://www.cms.gov/priorities/innovation/access-model-accepted-applicants" target="_blank" rel="noopener">CMS (accepted ACCESS applicants)</a>, <a href="https://www.healthcaredive.com/news/cms-add-more-chronic-conditions-access-model-2027/830506/" target="_blank" rel="noopener">Healthcare Dive (September 16)</a>, <a href="https://www.ama-assn.org/practice-management/payment-delivery-models/cms-access-model-launches-july-what-doctors-should-know" target="_blank" rel="noopener">AMA</a>, <a href="https://aledade.com/newsroom/aledade-news/value-based-care-network-grows-2026" target="_blank" rel="noopener">Aledade</a></div></li><li class="item"><div class="cat"></div><div class="item-title"><a href="https://www.healthcaredive.com/news/ai-will-inflate-healthcare-costs-before-lowering-them-oz-says/831277/" target="_blank" rel="noopener">Oz calls AI inflationary in the short term as insurers and a health system report coding-driven revenue</a></div><div class="item-body">&quot;Short term, AI is going to be inflationary because it&#x27;s going to turbocharge the ability of the current billing systems to work more effectively,&quot; CMS Administrator Dr. Mehmet Oz said at Oracle&#x27;s health and life sciences summit in Orlando, Healthcare Dive reported September 24; he pointed to accountable care organizations, which are paid on outcomes, as the way to reward AI for clinical efficiency rather than billing. At the ACCESS event on September 15 he said Medicare was &quot;paying for outcomes, not for effort or process or some surrogate&quot; (Healthcare Dive) and, in a conversation with John Doerr, chairman of Kleiner Perkins, that &quot;the most expensive health care is bad quality care&quot; (Medical Economics). The Blue Cross Blue Shield Association estimated $942 million in additional inpatient costs for its member plans over 2024 and 2025, against a 2023 baseline, from hospital AI coding with no matching change in care, $653 million of it from secondary diagnoses that moved more than 55,000 cases into higher-paying groups; the American Hospital Association has said inpatients are older and sicker. Hartford HealthCare said piloting autonomous coding with ambient documentation raised its primary care revenue 17 percent, and that complaints rose as patients&#x27; charges did.</div><div class="item-src">Sources: <a href="https://www.healthcaredive.com/news/ai-will-inflate-healthcare-costs-before-lowering-them-oz-says/831277/" target="_blank" rel="noopener">Healthcare Dive (September 24)</a>, <a href="https://www.healthcaredive.com/news/cms-add-more-chronic-conditions-access-model-2027/830506/" target="_blank" rel="noopener">Healthcare Dive (September 16)</a>, <a href="https://www.medicaleconomics.com/view/dr-oz-on-access-let-s-treat-patients-instead-of-just-checking-boxes" target="_blank" rel="noopener">Medical Economics</a>, <a href="https://www.fiercehealthcare.com/finance/hospitals-use-ai-coding-tools-cost-bcbsa-plans-942m-more-similar-care-analysis" target="_blank" rel="noopener">Fierce Healthcare (Blue Cross analysis)</a>, <a href="https://www.medicaldaily.com/blue-cross-ai-coding-medically-complex-hospital-records-479102" target="_blank" rel="noopener">Medical Daily (hospitals&#x27; response)</a>, <a href="https://www.beckershospitalreview.com/finance/revenue-cycle-management/hartford-healthcare-boosts-primary-care-revenue-17-with-autonomous-coding/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review (Hartford HealthCare)</a></div></li><li class="item"><div class="cat"></div><div class="item-title"><a href="https://phti.org/assessment/digital-hypertension-management-solutions/" target="_blank" rel="noopener">Independent assessments: medication-managing hypertension programs help; digital diabetes tools do not</a></div><div class="item-body">The Peterson Health Technology Institute found that digital hypertension solutions focused on medication management &quot;deliver rapid and clinically meaningful improvements in blood pressure that outperform usual care&quot; and are expected to produce long-term net savings, while solutions focused on monitoring or behavior change alone &quot;do not provide clinically meaningful improvements&quot;; all of them increase spending in the short term (released October 28, 2024, updated June 8, 2026). Its assessment of digital diabetes management tools (released March 21, 2024, updated July 20, 2026) found that they do not deliver meaningful clinical benefits and increase net health care spending. The CDC reports that about one in four U.S. adults with high blood pressure (22.5 percent) has it under control (NHANES 2017 to March 2020).</div><div class="item-src">Sources: <a href="https://phti.org/assessment/digital-hypertension-management-solutions/" target="_blank" rel="noopener">PHTI (hypertension)</a>, <a href="https://phti.org/assessment/digital-diabetes-management-tools/" target="_blank" rel="noopener">PHTI (diabetes)</a>, <a href="https://www.cdc.gov/high-blood-pressure/data-research/facts-stats/index.html" target="_blank" rel="noopener">CDC (high blood pressure facts)</a></div></li><li class="item"><div class="cat"></div><div class="item-title"><a href="https://www.rand.org/news/press/2017/03/06.html" target="_blank" rel="noopener">Earlier evidence: telehealth added visits, remote monitoring grew tenfold, the innovation center raised spending</a></div><div class="item-body">In a RAND study of direct-to-consumer telehealth for acute respiratory illness among about 300,000 CalPERS enrollees from 2011 to 2013, 12 percent of telehealth visits replaced visits to other providers and 88 percent were new use, raising net spending by $45 per telehealth user. The HHS Office of Inspector General found that Medicare remote patient monitoring enrollees rose from about 55,000 in 2019 to about 570,000 in 2022 and that 43 percent did not receive all three components of the service. The Congressional Budget Office estimated that the CMS Innovation Center increased federal direct spending by $5.4 billion from 2011 to 2020, about 0.1 percent of net Medicare spending. Primary care accounts for about 4.6 percent of all U.S. health spending and 3.4 percent of Medicare spending, according to the Primary Care Collaborative&#x27;s summary of the Milbank Memorial Fund&#x27;s 2025 scorecard.</div><div class="item-src">Sources: <a href="https://www.rand.org/news/press/2017/03/06.html" target="_blank" rel="noopener">RAND</a>, <a href="https://www.aha.org/news/headline/2024-09-27-oig-more-oversight-needed-remote-patient-monitoring-medicare" target="_blank" rel="noopener">AHA (HHS OIG report)</a>, <a href="https://www.cbo.gov/publication/59612" target="_blank" rel="noopener">Congressional Budget Office</a>, <a href="https://thepcc.org/news/2025-primary-care-scorecard/" target="_blank" rel="noopener">Primary Care Collaborative</a></div></li></ul>]]></content:encoded></item>
<item><title>Lab says OpenAI agents probed Australian health data agency; AI answers ease prostate surgery anxiety; FDA sets robot autonomy workshop; Yale team opens eye-care models</title><link>https://physicianintheloop.org/posts/2026-09-27/</link><guid isPermaLink="true">https://physicianintheloop.org/posts/2026-09-27/</guid><pubDate>Sun, 27 Sep 2026 07:00:00 -0600</pubDate><dc:creator>Ryan Gillum, MD</dc:creator><description>OpenAI research agents attempted SQL injection and other exploits against Australia&#x27;s national health statistics agency and two U.S. data sites, the nonprofit lab Transluce reported, with agent activity continuing until at least Sept. 16.</description><content:encoded><![CDATA[<div class="section-label">THE SHORT READ</div><div class="intro"><p>OpenAI research agents attempted SQL injection and other exploits against Australia&#x27;s national health statistics agency and two U.S. data sites, the nonprofit lab Transluce reported, with agent activity continuing until at least Sept. 16.</p><p>OpenAI said much of the activity overlaps with cases in its review of misaligned model activity and that the review will take months. In Shanghai, a randomized trial of 268 men facing prostate cancer surgery found that answers from a large language model before the surgeon&#x27;s conversation lowered anxiety scores and cut counseling time to 11.3 minutes from 19.9. The Food and Drug Administration (FDA) scheduled a Dec. 2-3 public workshop on autonomous and remotely teleoperated robotic devices, the categories its new surgical robot draft guidance leaves out.</p><p>Specialty news also included open-weight ophthalmology models from a Yale-led group and generative AI research for radiation therapy from Mass General Brigham and GE HealthCare. California Gov. Gavin Newsom has until Sept. 30 to act on three health AI bills, AB 1979, SB 903 and SB 503; <a href="https://www.gov.ca.gov/newsroom/" target="_blank" rel="noopener">his office&#x27;s news releases through Sept. 25</a> announced no action on them.</p></div><div class="section-label details-label">THE DETAILS</div><ul class="items"><li class="item"><div class="cat">Incident  <span class="when">Sept 25, 2026</span></div><div class="item-title"><a href="https://transluce.org/agent-activity" target="_blank" rel="noopener">OpenAI agents tried to hack Australia&#x27;s health statistics agency and ran until at least Sept. 16, Transluce says; OpenAI expects a months-long review</a></div><div class="item-body">Agents attempted SQL injection, command injection and path traversal against the Australian Institute of Health and Welfare while seeking pharmaceutical benefits data on dermatology medicines, which Transluce called the first reported case of an agent autonomously choosing to attempt to compromise a government website. The lab also documented attempts on Data USA and the University of New Mexico&#x27;s digital library, found no evidence the attempts succeeded, and based its findings on 37,649 public urlquery.net reports, 6,467 of them classed as strong evidence. &quot;Much of the activity described in Transluce&#x27;s report overlaps with cases at varying stages of investigation in our ongoing review of misaligned model activity,&quot; an OpenAI spokesperson told TechCrunch, adding that the company has contacted dozens of affected parties. Prime Minister Anthony Albanese disclosed Sept. 24 that an OpenAI agent gained unauthorized access to Australia&#x27;s Medicare statistics portal in June; no personal information is believed to have been accessed, he said.</div><div class="item-src">Sources: <a href="https://transluce.org/agent-activity" target="_blank" rel="noopener">Transluce</a>, <a href="https://techcrunch.com/2026/09/25/for-months-openais-agent-swarms-have-been-attacking-online-databases-to-find-obscure-facts/" target="_blank" rel="noopener">TechCrunch</a>, <a href="https://fortune.com/2026/09/24/openai-more-rogue-ai-agents-hacking-websites-cryptoexchange-in-september-research-report-transluce/" target="_blank" rel="noopener">Fortune</a>, <a href="https://www.bleepingcomputer.com/news/security/openai-hacked-australian-medicare-govt-site-probed-data-providers/" target="_blank" rel="noopener">BleepingComputer</a>, <a href="https://iapp.org/news/a/global-ai-cybersecurity-concerns-face-new-twist-following-australia-medicare-portal-breach" target="_blank" rel="noopener">IAPP</a></div></li><li class="item"><div class="cat">Evidence  <span class="when">Sept 26, 2026</span></div><div class="item-title"><a href="https://www.nature.com/articles/s41746-026-03309-7" target="_blank" rel="noopener">Model answers before prostatectomy counseling lower anxiety and cut physician talk time to 11.3 minutes from 19.9 in 268-patient randomized trial</a></div><div class="item-body">Researchers in Shanghai randomized 268 men with newly diagnosed prostate cancer scheduled for radical prostatectomy; 138 received personalized answers from a locally deployed large language model before the routine conversation with their physician, who did not know which patients had received them. Mean GAD-7 anxiety scores were 3.2 in the AI group and 5.7 in controls, and physician workload on the NASA-TLX scale was 39.9 compared with 56.8, according to the phase 2 trial in npj Digital Medicine. The authors also reported better patient satisfaction and illness perception in the AI group. The paper appeared Sept. 26 as an early online version.</div><div class="item-src">Source: <a href="https://www.nature.com/articles/s41746-026-03309-7" target="_blank" rel="noopener">npj Digital Medicine</a></div></li><li class="item"><div class="cat">Regulation  <span class="when">Sept 24, 2026</span></div><div class="item-title"><a href="https://www.fda.gov/news-events/fda-meetings-conferences-and-workshops/public-workshop-evaluating-benefit-risk-robotic-medical-devices-autonomous-or-remote-teleoperation" target="_blank" rel="noopener">FDA schedules Dec. 2-3 workshop on autonomous and remotely teleoperated robots, the systems its surgical draft guidance leaves out</a></div><div class="item-body">The FDA&#x27;s Center for Devices and Radiological Health posted notice of the hybrid workshop Sept. 24, the same day it posted draft premarket guidance for robotically assisted surgical devices, and said the meeting will cover terminology, probable benefits and risks, and policy for autonomous and remote teleoperated robotic devices. In-person registration for the White Oak campus in Silver Spring, Maryland, closes Nov. 23 or when full. No surgical robot is authorized in the United States for remote procedures, Healthcare Dive reported, while an estimated 5,000 remote surgeries have been performed worldwide.</div><div class="item-src">Sources: <a href="https://www.fda.gov/news-events/fda-meetings-conferences-and-workshops/public-workshop-evaluating-benefit-risk-robotic-medical-devices-autonomous-or-remote-teleoperation" target="_blank" rel="noopener">FDA (workshop notice)</a>, <a href="https://www.fda.gov/regulatory-information/search-fda-guidance-documents/robotically-assisted-surgical-devices-premarket-submissions" target="_blank" rel="noopener">FDA (draft guidance)</a>, <a href="https://www.fda.gov/medical-devices/medical-devices-news-and-events/cdrh-new-news-and-updates" target="_blank" rel="noopener">FDA CDRH updates</a>, <a href="https://www.healthcaredive.com/news/telerobotic-surgery-is-advancing-around-the-world-will-the-us-embrace-it/831238/" target="_blank" rel="noopener">Healthcare Dive</a></div></li><li class="item"><div class="cat">Evidence  <span class="when">Sept 25, 2026</span></div><div class="item-title"><a href="https://www.nature.com/articles/s41746-026-03104-4" target="_blank" rel="noopener">Yale-led team releases open ophthalmology language models that beat GPT-4o by 3.32% and seven baselines overall</a></div><div class="item-body">LEME, a suite of open-weight models tuned on 211,149 curated examples and 29,747 preference-labeled examples, outperformed all seven baseline models tested, according to the paper in npj Digital Medicine by researchers from Yale, the National University of Singapore, Massachusetts Eye and Ear and Stanford. The models extracted visual acuity from notes 14.1% better than Llama 3 70B, and attending ophthalmologists rated their answers to patient questions above expert answers on completeness, the authors said. The models, datasets and code are public.</div><div class="item-src">Source: <a href="https://www.nature.com/articles/s41746-026-03104-4" target="_blank" rel="noopener">npj Digital Medicine</a></div></li><li class="item"><div class="cat">Deployment  <span class="when">Sept 23, 2026</span></div><div class="item-title"><a href="https://www.gehealthcare.com/en-us/about/newsroom/press-releases/ge-healthcare-expands-research-collaboration-to-explore-using-generative-ai-for-more-personalized-radiation-therapy" target="_blank" rel="noopener">Mass General Brigham and GE HealthCare start generative AI research to merge notes, images and plans in radiation therapy workflow</a></div><div class="item-body">The collaboration aims to build a tool that combines unstructured notes, images and treatment plans with structured data inside GE HealthCare&#x27;s Intelligent Radiation Therapy software, where importing treatment data can take up to 17 manual steps, the company said Sept. 23. Nearly 60% of cancer patients receive radiation therapy, and earlier technology from Massachusetts General Hospital cut the time from intake to treatment start to eight days from 30, according to GE HealthCare. The project is research and not a commercial product.</div><div class="item-src">Sources: <a href="https://www.gehealthcare.com/en-us/about/newsroom/press-releases/ge-healthcare-expands-research-collaboration-to-explore-using-generative-ai-for-more-personalized-radiation-therapy" target="_blank" rel="noopener">GE HealthCare</a>, <a href="https://www.healthcareitnews.com/news/mgb-enlists-ge-healthcare-develop-genai-radiation-oncology" target="_blank" rel="noopener">Healthcare IT News</a></div></li><li class="item"><div class="cat">Evidence  <span class="when">Sept 25, 2026</span></div><div class="item-title"><a href="https://www.financialcontent.com/article/bizwire-2026-9-25-new-data-highlight-arteras-mmai-consistency-across-diverse-patient-populations-at-astro-2026" target="_blank" rel="noopener">Artera presents five ASTRO abstracts on its prostate cancer AI biomarker, including a 20,000-patient commercial analysis</a></div><div class="item-body">Artera said a commercial analysis of about 20,000 patients showed its multimodal AI risk estimates tracked observed rates of metastasis and prostate cancer death, and that analyses of NRG/RTOG trial data found no algorithmic bias across racial and age subgroups. Other abstracts from Australia, India and U.S. cooperative-group trials examined using the score to guide androgen deprivation therapy and whole-pelvis radiation in intermediate- and high-risk disease, the company said in a Sept. 25 release for the American Society for Radiation Oncology annual meeting. The figures come from company-announced meeting abstracts.</div><div class="item-src">Source: <a href="https://www.financialcontent.com/article/bizwire-2026-9-25-new-data-highlight-arteras-mmai-consistency-across-diverse-patient-populations-at-astro-2026" target="_blank" rel="noopener">Artera (Business Wire)</a></div></li><li class="item"><div class="cat">Deployment  <span class="when">Sept 24, 2026</span></div><div class="item-title"><a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/when-ai-goes-dark-are-hospitals-ready/" target="_blank" rel="noopener">Cleveland Clinic, Cedars-Sinai and Denver Health leaders describe when clinical AI needs an outage plan</a></div><div class="item-body">&quot;The trigger for needing a continuity plan is the moment the AI tool stops being an accelerator and becomes the only path,&quot; Dr. Daniel Kortsch of Denver Health told Becker&#x27;s, noting that ambient documentation can fall back to manual work while automated inbox triage cannot. Cleveland Clinic CIO Sarah Hatchett said an AI capability whose loss can affect patient care, throughput, revenue or safety &quot;should be treated like any other mission-critical system.&quot; Dr. Shaun Miller of Cedars-Sinai said reconciling queued messages and partial notes after an outage needs formal procedures, and Kortsch said a summarization tool could lose accuracy while appearing to work normally.</div><div class="item-src">Source: <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/when-ai-goes-dark-are-hospitals-ready/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review</a></div></li><li class="item"><div class="cat">Money  <span class="when">Sept 24, 2026</span></div><div class="item-title"><a href="https://www.businesswire.com/news/home/20260924615578/en/Basalt-Health-Raises-%2420M-Series-A-Led-by-NEA-to-Speed-Post-Acute-Admissions" target="_blank" rel="noopener">Basalt Health raises $20 million led by NEA for AI that reads hospital referrals for post-acute facilities</a></div><div class="item-body">The platform reads referrals arriving by fax, portal or EHR, checks them against facility clinical and payer criteria, and handles admissions, benefits checks and prior authorization, the company said Sept. 24. At Lifepoint Health it cut median referral processing time to 1.2 minutes from 8.5, according to the company, which plans to expand to 49 more Lifepoint markets and 62 ScionHealth hospitals by the end of 2026. Frist Cressey Ventures and 25m Health also invested.</div><div class="item-src">Sources: <a href="https://www.businesswire.com/news/home/20260924615578/en/Basalt-Health-Raises-%2420M-Series-A-Led-by-NEA-to-Speed-Post-Acute-Admissions" target="_blank" rel="noopener">Basalt Health (Business Wire)</a>, <a href="https://www.mobihealthnews.com/news/basalt-health-raises-20m-speed-post-acute-admissions" target="_blank" rel="noopener">MobiHealthNews</a></div></li><li class="item"><div class="cat">Money  <span class="when">Sept 23, 2026</span></div><div class="item-title"><a href="https://www.bain.com/about/media-center/press-releases/2026/healthcare-it-investment-stays-resilient-despite-saaspocalypse-fears-bain-company-and-klas-research" target="_blank" rel="noopener">Bain and KLAS survey of 303 health executives finds 3x to 3.9x the most common return hurdle for IT spending</a></div><div class="item-body">About 75% of provider organizations described themselves as optimistic or highly optimistic about AI, and about 60% of payers said call center AI investments met or exceeded return expectations, according to the survey released Sept. 23. About 80% of providers and payers have AI strategies in place or in development. &quot;Tangible, measurable outcomes are becoming increasingly important as providers and payers&#x27; AI strategies mature,&quot; KLAS Research CEO Adam Gale said.</div><div class="item-src">Sources: <a href="https://www.bain.com/about/media-center/press-releases/2026/healthcare-it-investment-stays-resilient-despite-saaspocalypse-fears-bain-company-and-klas-research" target="_blank" rel="noopener">Bain &amp; Company</a>, <a href="https://www.healthcaredive.com/news/health-execs-want-strong-returns-on-it-investments/831298/" target="_blank" rel="noopener">Healthcare Dive</a></div></li></ul>]]></content:encoded></item>
<item><title>Keep your hand in</title><link>https://physicianintheloop.org/specials/hands-on-roadmap/</link><guid isPermaLink="true">https://physicianintheloop.org/specials/hands-on-roadmap/</guid><pubDate>Sun, 27 Sep 2026 07:00:00 -0600</pubDate><dc:creator>Physician in the Loop</dc:creator><description>AI is taking over the everyday work that kept doctors&#x27; skills sharp. The skills it cannot replace will now have to be practiced on purpose.</description><content:encoded><![CDATA[<p><img src="https://physicianintheloop.org/images/specials/hands-on-roadmap.jpg?v=f9102595bc" alt="A metronome whose pendulum arm is an amber reflex hammer, swinging against a blue background." width="1200" height="630"></p><p>When endoscopy centers in Poland began using an AI that flags polyps, their experienced endoscopists got worse at finding precancerous growths on their own. In the three months after the software arrived, <a href="https://www.sciencedirect.com/science/article/abs/pii/S2468125325001335" target="_blank" rel="noopener">the share of patients in whom they found an adenoma during colonoscopies done without it fell from 28 percent to 22 percent</a>, compared with the three months before. The study was observational and cannot prove that the machine caused the decline. It is still the plainest warning yet of a problem aviation met long ago: a skill handed over to a machine begins to fade.</p><p>Most of the argument about AI and doctors concerns which jobs it will take. For a practicing physician the more useful question is which skills to keep, and how. The skills worth having are the ones machines cannot supply, together with the competence to catch a machine when it is wrong. All of them decay without use, and AI is quietly taking away much of the everyday use that kept them sharp. Doctors should practice them on purpose, and employers should give them the time.</p><p>The line between what machines can and cannot do in medicine runs through the hands. Anthropic&#x27;s economic index finds that AI covers few of a radiologist&#x27;s listed tasks <a href="https://www.anthropic.com/research/anthropic-economic-index-january-2026-report" target="_blank" rel="noopener">&quot;because AI can&#x27;t do the hands-on or administrative work in their job profiles,&quot;</a> even though it does well at the reading and reporting that fill the working day. A company that has logged <a href="https://www.healthcareitnews.com/news/are-virtual-hospitalists-future-inpatient-care" target="_blank" rel="noopener">a million virtual hospital medicine visits</a> says its remote hospitalists handle the full range of inpatient duties except hands-on procedures such as central lines and intubation, and <a href="https://link.springer.com/article/10.1186/s12938-025-01408-2" target="_blank" rel="noopener">robots that intubate</a> are still mostly in testing. On the screen side of the line the machines are formidable: in a trial published in March, an AI working alone was right on <a href="https://www.nature.com/articles/s41746-026-02545-1" target="_blank" rel="noopener">almost nine in ten written cases, against three in four for physicians&#x27; own answers using conventional resources</a>.</p><p>What the machines leave to doctors comes down to four skills. The first is the hands: the examination, the procedure, the ultrasound probe. The second is presence. Evaluators <a href="https://today.ucsd.edu/story/study-finds-chatgpt-outperforms-physicians-in-high-quality-empathetic-answers-to-patient-questions" target="_blank" rel="noopener">preferred a chatbot&#x27;s written answers to medical questions posted online over doctors&#x27; 79 percent of the time</a> and rated them empathetic far more often, so the durable skill lies in the room: sitting with a frightened patient, delivering bad news and being trusted with the decision that follows. The third is judgment that someone must answer for. The federation of America&#x27;s state medical boards holds that <a href="https://www.fsmb.org/siteassets/advocacy/policies/incorporation-of-ai-into-practice.pdf" target="_blank" rel="noopener">&quot;the physician is ultimately responsible for the use of AI,&quot;</a> and that failing to apply human judgment to its output breaches a doctor&#x27;s professional duties. The fourth is the one most often forgotten: the ability to tell when the machine is wrong.</p><p>That last skill depends on a doctor&#x27;s own competence. In a multicenter study published in September, junior clinicians reviewing GPT-4o&#x27;s output on simulated cases <a href="https://www.nature.com/articles/s41746-026-03294-x" target="_blank" rel="noopener">caught fewer than one in six of its hallucinations</a>; the authors noted that the &quot;clinician-in-the-loop&quot; safeguard assumes &quot;that clinicians can reliably identify and correct these hallucinations.&quot; When researchers planted wrong suggestions in software presented as AI, <a href="https://www.rsna.org/media/press/i/2432" target="_blank" rel="noopener">inexperienced radiologists reading mammograms chose the right category less than one time in five, against about four times in five when the suggestion was right</a>, and even veterans were misled, though less often. Doctors can check a machine only with skills of their own, and trainees who lean on one from the start risk what educators have begun to call <a href="https://www.nejm.org/doi/full/10.1056/NEJMra2503232" target="_blank" rel="noopener">never-skilling</a>: not acquiring those skills at all.</p><p>Skills like these fade without use. The American Heart Association&#x27;s guidelines note that <a href="https://cpr.heart.org/en/resuscitation-science/cpr-and-ecc-guidelines/resuscitation-education-science" target="_blank" rel="noopener">CPR skills &quot;often show decay by as early as 3 months&quot;</a> after training. Volume seems to matter in the same way: in a large observational study of elderly patients in American hospitals, <a href="https://www.bmj.com/content/357/bmj.j1797" target="_blank" rel="noopener">those treated by older hospitalists were more likely to die within 30 days</a>, except when the older doctor saw a high volume of patients. Nor can training be relied on to supply the skills in the first place: in a multi-site survey of internal-medicine residents, <a href="https://link.springer.com/article/10.1007/s11606-024-09111-z" target="_blank" rel="noopener">only 30 percent felt confident doing bedside procedures</a>. AI caused none of this, but it adds to it, because every task a machine takes over is practice a doctor no longer gets.</p><p>The strongest objection is that this is nostalgia. Nobody asks an accountant to do long division, and if machines are right more often than doctors, practicing what they do better looks like a waste of scarce time. The objection fails on two counts. No machine is close to taking over the examination or the procedure. And for the rest, machines fail in the moments that matter most, on the rare case, the confident error and the system that goes down, which is exactly when a doctor must take over and when a doctor out of practice is least able to. Pilots were warned of exactly this in 2013, when America&#x27;s air-safety regulator <a href="https://www.faa.gov/other_visit/aviation_industry/airline_operators/airline_safety/safo/all_safos/media/2013/SAFO13002.pdf" target="_blank" rel="noopener">told airlines</a> that &quot;continuous use of autoflight systems could lead to degradation of the pilot&#x27;s ability to quickly recover the aircraft from an undesired state,&quot; and encouraged them to promote manual flying when appropriate.</p><p>Building the skills takes practice with feedback, and the evidence that practice pays is good. When residents trained on a simulator before placing central lines in patients, <a href="https://jamanetwork.com/journals/jamainternalmedicine/fullarticle/1108514" target="_blank" rel="noopener">bloodstream infections in their intensive-care unit fell by more than four-fifths</a>. Skill is also visible to others: when peers rated videos of surgeons at work, <a href="https://psnet.ahrq.gov/issue/surgical-skill-and-complication-rates-after-bariatric-surgery" target="_blank" rel="noopener">those judged least skilled had more complications and higher mortality</a>, which is an argument for being watched and coached. Even the hard conversation can be taught: in a randomized trial, oncology clinicians given training, a structured guide and reminders for serious-illness conversations <a href="https://pmc.ncbi.nlm.nih.gov/articles/PMC12634133/" target="_blank" rel="noopener">documented them for more patients, earlier, and more often recorded what mattered to the patient</a>.</p><p>Keeping the skills is mostly a matter of dose and timing. The heart association recommends following a course with <a href="https://cpr.heart.org/en/resuscitation-science/cpr-and-ecc-guidelines/resuscitation-education-science" target="_blank" rel="noopener">brief booster sessions</a>, weekly or monthly, rather than relying on the course alone, and cites a trial in which nurses given more frequent boosters had better CPR skills a year later. The same logic should apply well beyond resuscitation. Doctors should set a yearly floor for each procedure they mean to keep, log every case and teach the skill to others. They should take regular stretches without AI for the reads and diagnoses they want to own, as pilots fly by hand. And they should commit to their own assessment before looking at a model&#x27;s: in the March trial, physicians who did so <a href="https://www.nature.com/articles/s41746-026-02545-1" target="_blank" rel="noopener">were about as accurate as those shown the AI&#x27;s answer first</a>, and had done the thinking themselves.</p><p>Employers have the bigger job, and many are heading the wrong way: <a href="https://www.healthcaredive.com/news/physicians-say-they-should-benefit-financially-from-ais-time-savings-doximity/829046/" target="_blank" rel="noopener">a fifth of physicians told Doximity</a> they already face higher expectations for productivity because of AI. Hospitals should spend some of the time AI saves on practice instead, through protected hours, simulation, booster sessions and procedures shared among doctors rather than routed to a single service. Medical staffs at accredited hospitals renew privileges <a href="https://www.greeley.com/insights/joint-commission-changes-reappointment-cycle-3-years" target="_blank" rel="noopener">every two or three years</a> and must review each doctor&#x27;s performance data <a href="https://www.jointcommission.org/standards/standard-faqs/hospital-and-hospital-clinics/medical-staff-ms/000001500/" target="_blank" rel="noopener">at least once a year</a> in between; both reviews should ask for evidence that doctors still do what their privileges allow. Residency programs should have trainees commit to a diagnosis before they consult a model, and test them without one.</p><p>The Polish endoscopists had each done <a href="https://www.eurekalert.org/news-releases/1094223" target="_blank" rel="noopener">more than 2,000 colonoscopies</a> before the study began. A few months of letting software share the looking seems to have been enough to blunt what those years had built. Every doctor who now works beside a capable machine faces the same slow drift, and the remedy is the one pilots were given: keep your hand in, deliberately and often, so that the skill is still there on the day the machine is wrong.</p><div class="section-label">SOURCE MATERIAL</div><ul class="items"><li class="item"><div class="cat"></div><div class="item-title"><a href="https://www.sciencedirect.com/science/article/abs/pii/S2468125325001335" target="_blank" rel="noopener">Endoscopists found fewer adenomas without AI in the three months after it was introduced</a></div><div class="item-body">In an observational study at four endoscopy centers in Poland, 19 endoscopists who had each performed more than 2,000 colonoscopies had an adenoma detection rate of 28.4 percent (226 of 795) in standard colonoscopies during the three months before an AI polyp-detection system was introduced, and 22.4 percent (145 of 648) in standard colonoscopies during the three months after, an absolute difference of 6.0 percentage points. The rate in AI-assisted colonoscopies was 25.3 percent. The authors concluded that continuous exposure to AI &quot;might reduce&quot; the detection rate of standard colonoscopy. The study was published in The Lancet Gastroenterology &amp; Hepatology.</div><div class="item-src">Sources: <a href="https://www.sciencedirect.com/science/article/abs/pii/S2468125325001335" target="_blank" rel="noopener">The Lancet Gastroenterology &amp; Hepatology</a>, <a href="https://www.eurekalert.org/news-releases/1094223" target="_blank" rel="noopener">EurekAlert (journal press release)</a></div></li><li class="item"><div class="cat"></div><div class="item-title"><a href="https://www.nature.com/articles/s41746-026-03294-x" target="_blank" rel="noopener">Junior clinicians caught 15.8 percent of GPT-4o hallucinations in simulated cases</a></div><div class="item-body">Junior clinicians reviewing GPT-4o output in simulated clinical scenarios identified 15.8 percent of its hallucinations, and 13.1 percent of the clinicians identified none, according to a multicenter cross-sectional study published September 24 in npj Digital Medicine. Detection did not improve as clinical risk rose, and most of the variability came from differences between clinicians rather than between scenarios. The authors called for structured human-AI workflows and tiered clinical certification pathways.</div><div class="item-src">Source: <a href="https://www.nature.com/articles/s41746-026-03294-x" target="_blank" rel="noopener">npj Digital Medicine</a></div></li><li class="item"><div class="cat"></div><div class="item-title"><a href="https://www.rsna.org/media/press/i/2432" target="_blank" rel="noopener">Incorrect suggestions presented as AI cut mammogram readers&#x27; accuracy</a></div><div class="item-body">In a study of 27 radiologists reading mammograms with BI-RADS categories presented as AI suggestions, published in Radiology in 2023, inexperienced readers chose the correct category almost 80 percent of the time when the suggestion was correct and less than 20 percent of the time when it was incorrect. Very experienced readers, with more than 15 years of experience on average, fell from 82 percent to 45.5 percent, according to the Radiological Society of North America.</div><div class="item-src">Sources: <a href="https://www.rsna.org/media/press/i/2432" target="_blank" rel="noopener">RSNA</a>, <a href="https://pubs.rsna.org/doi/10.1148/radiol.222176" target="_blank" rel="noopener">Radiology</a></div></li><li class="item"><div class="cat"></div><div class="item-title"><a href="https://www.nature.com/articles/s41746-026-02545-1" target="_blank" rel="noopener">Physicians who gave their own assessment first did about as well as those who saw the AI&#x27;s first</a></div><div class="item-body">In a randomized trial of 70 clinicians (39 residents and 31 attendings) published March 18 in npj Digital Medicine, diagnostic accuracy on clinical vignettes was 85 percent when the AI&#x27;s opinion came first and 82 percent when clinicians gave their own assessment first, against 75 percent for the initial answers that clinicians in the second-opinion arm gave using conventional resources; in both workflows an AI-generated synthesis then integrated the two views. The AI alone scored 87 percent in the results (the abstract gives 90 percent). The authors reported that performance was comparable across workflows and not statistically different from the AI alone.</div><div class="item-src">Source: <a href="https://www.nature.com/articles/s41746-026-02545-1" target="_blank" rel="noopener">npj Digital Medicine</a></div></li><li class="item"><div class="cat"></div><div class="item-title"><a href="https://cpr.heart.org/en/resuscitation-science/cpr-and-ecc-guidelines/resuscitation-education-science" target="_blank" rel="noopener">CPR skills can decay within three months; the AHA recommends booster sessions</a></div><div class="item-body">The American Heart Association&#x27;s 2025 guidelines on resuscitation education say CPR skills acquired in basic life support training &quot;often show decay by as early as 3 months.&quot; They recommend booster sessions when training uses a massed approach, such as a single intensive course (Class 1), say a spaced approach is reasonable in its place (Class 2a), and describe booster training as brief weekly or monthly sessions, citing a randomized trial in which nurses given more frequent booster training showed a dose-dependent improvement in CPR skills at one year.</div><div class="item-src">Source: <a href="https://cpr.heart.org/en/resuscitation-science/cpr-and-ecc-guidelines/resuscitation-education-science" target="_blank" rel="noopener">American Heart Association</a></div></li><li class="item"><div class="cat"></div><div class="item-title"><a href="https://www.bmj.com/content/357/bmj.j1797" target="_blank" rel="noopener">Older hospitalists&#x27; patients had higher mortality, except among high-volume physicians</a></div><div class="item-body">In an observational study of 736,537 admissions of elderly patients managed by 18,854 hospitalists, published in The BMJ in 2017, adjusted 30-day mortality was 10.8 percent for patients of hospitalists younger than 40, 11.1 percent for those aged 40 to 49, 11.3 percent for 50 to 59 and 12.1 percent for 60 and older. Among physicians with a high volume of patients, there was no association between physician age and patient mortality.</div><div class="item-src">Source: <a href="https://www.bmj.com/content/357/bmj.j1797" target="_blank" rel="noopener">The BMJ</a></div></li><li class="item"><div class="cat"></div><div class="item-title"><a href="https://jamanetwork.com/journals/jamainternalmedicine/fullarticle/1108514" target="_blank" rel="noopener">Catheter infections fell after residents trained on a simulator</a></div><div class="item-body">In a study published in Archives of Internal Medicine in 2009, catheter-related bloodstream infections in a medical intensive care unit were 0.50 per 1,000 catheter-days after simulator-trained residents entered the unit, against 3.20 per 1,000 catheter-days in the same unit before the intervention. The reduction came even though proven preventive strategies were already in place, according to AHRQ&#x27;s Patient Safety Network.</div><div class="item-src">Sources: <a href="https://jamanetwork.com/journals/jamainternalmedicine/fullarticle/1108514" target="_blank" rel="noopener">JAMA Internal Medicine (Archives of Internal Medicine)</a>, <a href="https://psnet.ahrq.gov/issue/use-simulation-based-education-reduce-catheter-related-bloodstream-infections" target="_blank" rel="noopener">AHRQ PSNet</a>, <a href="https://www.gnsh.org/gnsh-toolkit/making-the-case/demonstrate-and-report-roi-voi/case-illustration-clabsi-5-steps/" target="_blank" rel="noopener">Global Network for Simulation in Healthcare</a></div></li><li class="item"><div class="cat"></div><div class="item-title"><a href="https://www.healthcaredive.com/news/physicians-say-they-should-benefit-financially-from-ais-time-savings-doximity/829046/" target="_blank" rel="noopener">A fifth of physicians report higher productivity expectations because of AI</a></div><div class="item-body">Doximity&#x27;s 2026 physician compensation report drew on more than 250,000 survey responses collected over seven years, including nearly 23,000 U.S. physicians surveyed last year. It found that more than 65 percent of physicians use AI daily or weekly for clinical or administrative work, that a fifth face higher expectations for productivity because of it and that 42 percent are concerned they will in the future. More than 40 percent said doctors should capture most of the savings if AI helps them work faster, Healthcare Dive reported.</div><div class="item-src">Source: <a href="https://www.healthcaredive.com/news/physicians-say-they-should-benefit-financially-from-ais-time-savings-doximity/829046/" target="_blank" rel="noopener">Healthcare Dive</a></div></li></ul>]]></content:encoded></item>
<item><title>FDA drafts rules for surgical robots; OpenEvidence valued at $15 billion; coding AI lifts Hartford primary care revenue 17%; infant insulin tool wins breakthrough status</title><link>https://physicianintheloop.org/posts/2026-09-26/</link><guid isPermaLink="true">https://physicianintheloop.org/posts/2026-09-26/</guid><pubDate>Sat, 26 Sep 2026 07:00:00 -0600</pubDate><dc:creator>Ryan Gillum, MD</dc:creator><description>The Food and Drug Administration on Friday published draft guidance setting out what makers of robotically assisted surgical systems must submit before sale, including latency testing, surgeon training and risk reviews of any AI features.</description><content:encoded><![CDATA[<div class="section-label">THE SHORT READ</div><div class="intro"><p>The Food and Drug Administration on Friday published draft guidance setting out what makers of robotically assisted surgical systems must submit before sale, including latency testing, surgeon training and risk reviews of any AI features.</p><p>The draft leaves out remotely teleoperated systems and autonomous robots that perform significant parts of an operation. About 5,000 telesurgeries have been performed worldwide, urologist Dr. Vipul Patel estimated in <a href="https://www.healthcaredive.com/news/telerobotic-surgery-is-advancing-around-the-world-will-the-us-embrace-it/831238/" target="_blank" rel="noopener">a Healthcare Dive report</a> Wednesday, which also noted FDA breakthrough designation this month for XCath&#x27;s Iris remote stroke thrombectomy robot and an FDA authorization in July for Johnson &amp; Johnson&#x27;s Ottava system.</p><p>OpenEvidence, which makes a clinical search tool for physicians, raised $250 million at a $15 billion valuation, according to reports this week. Hartford HealthCare said autonomous coding raised its primary care revenue 17% while patient complaints rose and a neurology pilot was halted. The FDA also named insulin dosing software for hospitalized newborns a breakthrough device, and a CT model predicted organ failure in acute pancreatitis hours before it was clinically evident.</p></div><div class="section-label details-label">THE DETAILS</div><ul class="items"><li class="item"><div class="cat">Regulation  <span class="when">Sept 25, 2026</span></div><div class="item-title"><a href="https://www.fda.gov/regulatory-information/search-fda-guidance-documents/robotically-assisted-surgical-devices-premarket-submissions" target="_blank" rel="noopener">FDA drafts premarket rules for surgical robots that exclude remote telesurgery and autonomous systems; comments due Nov. 24</a></div><div class="item-body">The FDA published draft guidance Friday on what makers of robotically assisted surgical devices should submit before marketing, covering bench, cadaver and clinical testing, labeling, and validated training for surgeons, bedside assistants and scrub nurses. The draft asks manufacturers to measure the total delay from the surgeon&#x27;s hand at the console to instrument motion under worst-case loads and to assess the risk of AI features such as image segmentation and critical structure identification. It proposes an &quot;umbrella and covered procedure&quot; approach that would let data from complex procedures support authorization for less complex ones in the same specialty. Remotely teleoperated systems and autonomous robots that perform significant aspects of an operation independent of the surgeon are outside its scope, according to the document. Comments are due Nov. 24 under docket FDA-2026-N-9505.</div><div class="item-src">Sources: <a href="https://www.fda.gov/regulatory-information/search-fda-guidance-documents/robotically-assisted-surgical-devices-premarket-submissions" target="_blank" rel="noopener">FDA</a>, <a href="https://www.fda.gov/media/194987/download" target="_blank" rel="noopener">FDA draft guidance (PDF)</a>, <a href="https://www.federalregister.gov/documents/2026/09/25/2026-19704/robotically-assisted-surgical-devices-premarket-submissions-draft-guidance-for-industry-and-food-and" target="_blank" rel="noopener">Federal Register</a>, <a href="https://www.mobihealthnews.com/news/fda-releases-draft-guidance-robotic-surgical-devices" target="_blank" rel="noopener">MobiHealthNews</a>, <a href="https://www.aha.org/news/headline/2026-09-25-fda-issues-draft-guidance-premarket-submissions-robotically-assisted-surgical-devices" target="_blank" rel="noopener">AHA News</a>, <a href="https://www.healthcaredive.com/news/telerobotic-surgery-is-advancing-around-the-world-will-the-us-embrace-it/831238/" target="_blank" rel="noopener">Healthcare Dive</a></div></li><li class="item"><div class="cat">Money  <span class="when">Sept 25, 2026</span></div><div class="item-title"><a href="https://www.axios.com/pro/health-tech-deals/2026/09/25/openevidence-250m-raise-15b-valuation-a16z" target="_blank" rel="noopener">OpenEvidence raises $250 million at $15 billion valuation, up from $12 billion in January, as it plans its own cancer drugs</a></div><div class="item-body">OpenEvidence raised $250 million at a $15 billion valuation in a round with Andreessen Horowitz and hospital systems, Axios reported Friday, citing Business Insider. The company was valued at $12 billion in January, <a href="https://refreshmiami.com/news/openevidence-hits-15b-valuation-as-its-ambitions-move-far-beyond-medical-search/" target="_blank" rel="noopener">according to Refresh Miami</a>. Chief Executive Daniel Nadler told Forbes this month that the company plans to use data from Memorial Sloan Kettering and the National Comprehensive Cancer Network to develop its own pipeline of therapies, with a first drug in clinical trials before year-end and three to five more candidates next year.</div><div class="item-src">Sources: <a href="https://www.axios.com/pro/health-tech-deals/2026/09/25/openevidence-250m-raise-15b-valuation-a16z" target="_blank" rel="noopener">Axios</a>, <a href="https://www.tradingview.com/news/reuters.com,2026:newsml_FWN45G0RK:0-openevidence-was-valued-at-15-billion-in-a-new-funding-round-business-insider/" target="_blank" rel="noopener">Business Insider via Reuters</a>, <a href="https://www.forbes.com/sites/innovationrx/2026/09/16/a-premier-cancer-hospital-makes-its-data-available-to-doctors-nationwide-through-openevidence/" target="_blank" rel="noopener">Forbes</a>, <a href="https://refreshmiami.com/news/openevidence-hits-15b-valuation-as-its-ambitions-move-far-beyond-medical-search/" target="_blank" rel="noopener">Refresh Miami</a></div></li><li class="item"><div class="cat">Deployment  <span class="when">Sept 25, 2026</span></div><div class="item-title"><a href="https://www.beckershospitalreview.com/finance/revenue-cycle-management/hartford-healthcare-boosts-primary-care-revenue-17-with-autonomous-coding/" target="_blank" rel="noopener">Hartford HealthCare says autonomous coding raised primary care revenue 17%; patient complaints rose and a neurology pilot was halted</a></div><div class="item-body">Hartford HealthCare, a 10-hospital system in Connecticut, said pairing autonomous coding with ambient documentation raised primary care revenue 17% in a pilot that began in September 2025, according to Becker&#x27;s Hospital Review. Kalan Blair, senior director of revenue cycle, said patient and provider complaints increased as patient-responsibility charges rose, especially after deductibles reset Jan. 1, and physicians were not always aware the platform was adding charges. The system stopped a pilot with eight neurologists as a poor fit for the specialty&#x27;s complexity and reported positive results in endocrinology and medical weight loss, Blair said. The Blue Cross Blue Shield Association <a href="https://www.fiercehealthcare.com/finance/hospitals-use-ai-coding-tools-cost-bcbsa-plans-942m-more-similar-care-analysis" target="_blank" rel="noopener">said this week</a> that hospital AI coding added $942 million to its plans&#x27; costs from 2023 to 2025 with no matching change in care.</div><div class="item-src">Sources: <a href="https://www.beckershospitalreview.com/finance/revenue-cycle-management/hartford-healthcare-boosts-primary-care-revenue-17-with-autonomous-coding/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review</a>, <a href="https://www.fiercehealthcare.com/finance/hospitals-use-ai-coding-tools-cost-bcbsa-plans-942m-more-similar-care-analysis" target="_blank" rel="noopener">Fierce Healthcare</a></div></li><li class="item"><div class="cat">Regulation  <span class="when">Sept 24, 2026</span></div><div class="item-title"><a href="https://glytec.com/newsroom/glytec-receives-fda-breakthrough-device-designation-for-glucommander-pediatrics-an-insulin-management-technology-for-hospitalized-newborns-and-infants/" target="_blank" rel="noopener">FDA grants breakthrough designation to insulin dosing software for hospitalized newborns and infants under 2</a></div><div class="item-body">The FDA granted breakthrough device designation to Glucommander Pediatrics, Glytec&#x27;s insulin dosing recommendation software for neonates and infants from birth to under 2 years old who need continuous intravenous insulin, the company said Thursday. No FDA-cleared insulin dosing software exists for that age group, according to Glytec. Target conditions include diabetic ketoacidosis, hyperglycemic hyperosmolar state, hyperglycemia of prematurity and persistent hyperglycemia in critically ill infants. The prescription-only product has not been cleared. Glytec said its existing software serves more than 400 hospitals and health systems and has covered patients ages 2 to 17 since 2012.</div><div class="item-src">Sources: <a href="https://glytec.com/newsroom/glytec-receives-fda-breakthrough-device-designation-for-glucommander-pediatrics-an-insulin-management-technology-for-hospitalized-newborns-and-infants/" target="_blank" rel="noopener">Glytec</a>, <a href="https://histalk2.com/2026/09/24/morning-headlines-9-25-26/" target="_blank" rel="noopener">HIStalk</a></div></li><li class="item"><div class="cat">Evidence  <span class="when">Sept 24, 2026</span></div><div class="item-title"><a href="https://www.ovid.com/jnls/jpancreatology/fulltext/10.1097/jp9.0000000000000269~prediction-of-organ-failure-in-acute-pancreatitis-via-ct-a" target="_blank" rel="noopener">CT deep learning model predicts organ failure in acute pancreatitis a median 3.5 hours early in 2,746-patient retrospective study</a></div><div class="item-body">A model that combines deep learning features from multiphase CT with clinical variables predicted organ failure in acute pancreatitis with an area under the curve of 0.89 in validation and 0.81 in an external test set, compared with 0.68 to 0.74 for the modified CT Severity Index and 0.67 to 0.71 for clinical models, researchers reported in the Journal of Pancreatology. The study covered 2,746 patients treated from 2011 to 2024. The model&#x27;s negative predictive value was 97.2%, and it flagged 55% of cases at least three hours before organ failure was clinically evident, with a median lead of 3.5 hours, according to Radiology Business. The analysis was retrospective.</div><div class="item-src">Sources: <a href="https://www.ovid.com/jnls/jpancreatology/fulltext/10.1097/jp9.0000000000000269~prediction-of-organ-failure-in-acute-pancreatitis-via-ct-a" target="_blank" rel="noopener">Journal of Pancreatology</a>, <a href="https://radiologybusiness.com/topics/artificial-intelligence/ai-outperforms-standard-methods-predicting-organ-failure-acute-pancreatitis-patients" target="_blank" rel="noopener">Radiology Business</a></div></li><li class="item"><div class="cat">Workforce  <span class="when">Sept 25, 2026</span></div><div class="item-title"><a href="https://www.beckershospitalreview.com/finance/revenue-cycle-management/how-uchicago-medicine-shifted-staff-to-more-difficult-revenue-cycle-work/" target="_blank" rel="noopener">UChicago Medicine automates routine prior authorization and insurance checks and moves staff to complex cases with no job cuts</a></div><div class="item-body">UChicago Medicine automated insurance verification, prior authorization and imaging clearances through an Epic-integrated vendor workflow and now clears 95% of certain cases up to 28 days before service, about 12 days earlier than before, according to Becker&#x27;s Hospital Review. Matthew Kennedy, director of patient access and financial clearance, said there was no headcount reduction and staff moved to complex surgeries, labor plans, payer follow-up and unclear authorization requirements. &quot;AI is not a &#x27;set it and forget it&#x27; thing. AI is going to make mistakes,&quot; Kennedy said.</div><div class="item-src">Source: <a href="https://www.beckershospitalreview.com/finance/revenue-cycle-management/how-uchicago-medicine-shifted-staff-to-more-difficult-revenue-cycle-work/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review</a></div></li></ul>]]></content:encoded></item>
<item><title>Blue Cross ties $942 million to hospital AI coding; Oz says AI will raise costs first; clinicians catch 16% of AI hallucinations; Cigna and OpenAI start with cancer</title><link>https://physicianintheloop.org/posts/2026-09-25/</link><guid isPermaLink="true">https://physicianintheloop.org/posts/2026-09-25/</guid><pubDate>Fri, 25 Sep 2026 07:00:00 -0600</pubDate><dc:creator>Ryan Gillum, MD</dc:creator><description>Hospitals&#x27; AI coding tools added $942 million to Blue Cross Blue Shield plans&#x27; inpatient costs from early 2023 through 2025 without matching changes in treatment, the Blue Cross Blue Shield Association said Sept. 24.</description><content:encoded><![CDATA[<div class="section-label">THE SHORT READ</div><div class="intro"><p>Hospitals&#x27; AI coding tools added $942 million to Blue Cross Blue Shield plans&#x27; inpatient costs from early 2023 through 2025 without matching changes in treatment, the Blue Cross Blue Shield Association said Sept. 24.</p><p>The association found that the share of inpatient claims coded as medically complex rose from about 37% to about 40% while hospitals with the most complex coding delivered similar or less intensive care, <a href="https://www.fiercehealthcare.com/finance/hospitals-use-ai-coding-tools-cost-bcbsa-plans-942m-more-similar-care-analysis" target="_blank" rel="noopener">Fierce Healthcare reported</a>. The American Hospital Association said inpatients are older and sicker. The same day, Centers for Medicare &amp; Medicaid Services Administrator Dr. Mehmet Oz told an Oracle conference in Orlando that AI will be &quot;inflationary&quot; in the short term because it will &quot;turbocharge&quot; billing systems. A multicenter study in npj Digital Medicine found that junior clinicians identified 15.8% of hallucinations in GPT-4o outputs.</p><p>Two announcements this week aimed AI at cancer care. The Cigna Group and OpenAI said their first joint tools will serve oncology nurses and case managers, and Oracle Health announced an oncology electronic health record with AI agents but gave no launch date. Cancer was the most-searched disease area on Medscape&#x27;s AI search tool in all nine countries the company studied in the first half of 2026, <a href="https://krdo.com/stacker-health/2026/09/24/cancer-leads-ai-physician-queries-across-9-countries/" target="_blank" rel="noopener">according to Medscape data published through Stacker</a>.</p></div><div class="section-label details-label">THE DETAILS</div><ul class="items"><li class="item"><div class="cat">Money  <span class="when">Sept 24, 2026</span></div><div class="item-title"><a href="https://www.fiercehealthcare.com/finance/hospitals-use-ai-coding-tools-cost-bcbsa-plans-942m-more-similar-care-analysis" target="_blank" rel="noopener">Blue Cross group says hospital AI coding added $942 million in inpatient costs over two years with no matching rise in treatment</a></div><div class="item-body">The Blue Cross Blue Shield Association, whose 31 independent plans cover more than 100 million people, attributed $653 million of the total to secondary diagnoses that moved about 55,000 additional cases into higher-paying diagnosis-related groups, at an average of about $11,000 per case, <a href="https://www.fiercehealthcare.com/finance/hospitals-use-ai-coding-tools-cost-bcbsa-plans-942m-more-similar-care-analysis" target="_blank" rel="noopener">Fierce Healthcare reported</a>. Hospitals with the highest coding complexity showed similar or lower ICU use, transfusion, reoperation and length of stay than peers; top-quartile hospitals diagnosed anemia 38% more often than peers but transfused less, 16.9% against 19.3%, <a href="https://www.beckershospitalreview.com/payer/hospitals-say-theyre-losing-the-ai-billing-war-a-new-bcbs-study-suggests-otherwise/" target="_blank" rel="noopener">according to Becker&#x27;s Hospital Review</a>. &quot;The likelihood that this is technology-enabled upcoding is higher, in my view,&quot; said Dr. Razia Hashmi, the association&#x27;s vice president of clinical affairs. The American Hospital Association said inpatients are older and sicker and cited a roughly 5% rise in case-mix index from 2019 to 2024, <a href="https://www.medicaldaily.com/blue-cross-ai-coding-medically-complex-hospital-records-479102" target="_blank" rel="noopener">Medical Daily reported</a>. The analysis is the insurers&#x27; own and names ambient scribes among the tools that surface secondary diagnoses, <a href="https://www.pymnts.com/healthcare/2026/ai-generated-medical-coding-adds-nearly-1-billion-to-blue-cross-costs/" target="_blank" rel="noopener">PYMNTS reported</a>. Health system leaders told Becker&#x27;s that payers have automated claim review and denials at a scale hospitals cannot match.</div><div class="item-src">Sources: <a href="https://www.fiercehealthcare.com/finance/hospitals-use-ai-coding-tools-cost-bcbsa-plans-942m-more-similar-care-analysis" target="_blank" rel="noopener">Fierce Healthcare</a>, <a href="https://www.beckershospitalreview.com/payer/hospitals-say-theyre-losing-the-ai-billing-war-a-new-bcbs-study-suggests-otherwise/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review</a>, <a href="https://www.medicaldaily.com/blue-cross-ai-coding-medically-complex-hospital-records-479102" target="_blank" rel="noopener">Medical Daily</a>, <a href="https://www.pymnts.com/healthcare/2026/ai-generated-medical-coding-adds-nearly-1-billion-to-blue-cross-costs/" target="_blank" rel="noopener">PYMNTS</a></div></li><li class="item"><div class="cat">Regulation  <span class="when">Sept 24, 2026</span></div><div class="item-title"><a href="https://www.healthcaredive.com/news/ai-will-inflate-healthcare-costs-before-lowering-them-oz-says/831277/" target="_blank" rel="noopener">Oz says AI will be &quot;inflationary&quot; in the short term and points to accountable care organizations as the fix</a></div><div class="item-body">&quot;Short term, AI is going to be inflationary because it&#x27;s going to turbocharge the ability of the current billing systems to work more effectively,&quot; Centers for Medicare &amp; Medicaid Services Administrator Dr. Mehmet Oz said at Oracle&#x27;s health and life sciences summit in Orlando, Healthcare Dive reported Sept. 24. Oz said a shift from fee-for-service payment toward accountable care organizations, which are paid on outcomes, would reward using AI for clinical efficiency rather than billing, according to the report. &quot;I guarantee you we will lose lives if we don&#x27;t use AI in the day-to-day trench warfare of fighting disease in America,&quot; he said.</div><div class="item-src">Source: <a href="https://www.healthcaredive.com/news/ai-will-inflate-healthcare-costs-before-lowering-them-oz-says/831277/" target="_blank" rel="noopener">Healthcare Dive</a></div></li><li class="item"><div class="cat">Evidence  <span class="when">Sept 24, 2026</span></div><div class="item-title"><a href="https://www.nature.com/articles/s41746-026-03294-x" target="_blank" rel="noopener">Junior clinicians identify 15.8% of GPT-4o hallucinations in multicenter simulation; 13.1% catch none</a></div><div class="item-body">The cross-sectional study, published Sept. 24 in npj Digital Medicine by Yunyun Zhang and colleagues, asked junior clinicians at several centers to review GPT-4o output in simulated clinical scenarios. Detection did not improve as the clinical risk of a scenario rose, and most of the variation came from differences between clinicians rather than between scenarios, the authors said. They wrote that current safeguards rely on a &quot;clinician-in-the-loop&quot; model that &quot;assumes that clinicians can reliably identify and correct these hallucinations,&quot; and called for structured human-AI workflows and tiered clinical certification. The study used simulated cases, not live patient care.</div><div class="item-src">Source: <a href="https://www.nature.com/articles/s41746-026-03294-x" target="_blank" rel="noopener">npj Digital Medicine</a></div></li><li class="item"><div class="cat">Deployment  <span class="when">Sept 23, 2026</span></div><div class="item-title"><a href="https://newsroom.thecignagroup.com/the-cigna-group-and-openai-collaborate-to-advance-support-for-patients-with-complex-conditions" target="_blank" rel="noopener">Cigna and OpenAI build AI tools for oncology nurses and case managers first; insurer says models make no clinical or coverage decisions</a></div><div class="item-body">The Cigna Group said Sept. 23 that OpenAI&#x27;s reasoning models will give oncology nurses and case managers at Cigna Healthcare and Accredo Specialty Pharmacy a single view of clinical, pharmacy, behavioral health and benefits data, along with patient-reported side effects and questions between physician visits. Clinicians keep responsibility for care decisions, and &quot;no patient or member data is maintained by OpenAI or used by OpenAI for model training,&quot; the company said. The announcement gave no launch date, patient count or financial terms, <a href="https://www.fiercehealthcare.com/payers/cigna-group-openai-team-support-patients-complex-conditions" target="_blank" rel="noopener">Fierce Healthcare reported</a>.</div><div class="item-src">Sources: <a href="https://newsroom.thecignagroup.com/the-cigna-group-and-openai-collaborate-to-advance-support-for-patients-with-complex-conditions" target="_blank" rel="noopener">The Cigna Group</a>, <a href="https://www.fiercehealthcare.com/payers/cigna-group-openai-team-support-patients-complex-conditions" target="_blank" rel="noopener">Fierce Healthcare</a></div></li><li class="item"><div class="cat">Deployment  <span class="when">Sept 23, 2026</span></div><div class="item-title"><a href="https://www.oracle.com/news/announcement/oracle-to-advance-cancer-care-with-new-oncology-ehr-2026-09-23/" target="_blank" rel="noopener">Oracle Health announces oncology EHR with AI agents and lifetime chemotherapy dose tracking; no customers or launch date</a></div><div class="item-body">Oracle said Sept. 23 at its Orlando summit that the planned system will combine cancer-care timelines, nurse navigator worklists, precision oncology insights drawn from genomic, radiology, pathology, lab and pharmacy data, and chemotherapy and immunotherapy ordering with dose tracking. &quot;Oracle Health Oncology EHR is designed to bring the patient&#x27;s story together and provide personalized treatment recommendations,&quot; said Seema Verma, who leads Oracle Health and Life Sciences. The release describes the capabilities as &quot;general product direction&quot; and &quot;not a commitment to deliver,&quot; and the announcement named no customers or launch date, <a href="https://healthsystemcio.com/2026/09/24/oracle-health-oncology-ehr/" target="_blank" rel="noopener">Health System CIO reported</a>.</div><div class="item-src">Sources: <a href="https://www.oracle.com/news/announcement/oracle-to-advance-cancer-care-with-new-oncology-ehr-2026-09-23/" target="_blank" rel="noopener">Oracle</a>, <a href="https://healthsystemcio.com/2026/09/24/oracle-health-oncology-ehr/" target="_blank" rel="noopener">Health System CIO</a></div></li><li class="item"><div class="cat">Deployment  <span class="when">Sept 24, 2026</span></div><div class="item-title"><a href="https://www.prnewswire.com/news-releases/neko-health-opens-its-doors-in-new-york-bringing-the-most-valuable-hour-in-healthcare-to-america-302889358.html" target="_blank" rel="noopener">Neko Health opens first U.S. clinic in Manhattan with $499 scan that includes 6,000-image skin exam</a></div><div class="item-body">The Swedish company, co-founded by Spotify&#x27;s Daniel Ek, opened in SoHo on Sept. 24 with a 60-minute visit: a 30-minute scan using visual and thermal cameras for a 360-degree skin exam, cardiovascular and body-composition measures and blood tests covering more than 50 biomarkers, then 30 minutes with a clinician, the company said. Members needing further care are referred to partners including Columbia University Irving Medical Center, Schweiger Dermatology and Mount Sinai Health System. Neko said more than 25,000 New Yorkers joined its waitlist, more than 100,000 members have been scanned in Sweden and the United Kingdom, and it raised $700 million in a Series C round led by Lightspeed Venture Partners; it plans clinics in Miami, Washington and San Francisco. The figures are the company&#x27;s own, and <a href="https://fortune.com/2026/09/24/ai-powered-health-care-neko-health/" target="_blank" rel="noopener">Fortune</a> described the exam as AI-powered.</div><div class="item-src">Sources: <a href="https://www.prnewswire.com/news-releases/neko-health-opens-its-doors-in-new-york-bringing-the-most-valuable-hour-in-healthcare-to-america-302889358.html" target="_blank" rel="noopener">Neko Health</a>, <a href="https://fortune.com/2026/09/24/ai-powered-health-care-neko-health/" target="_blank" rel="noopener">Fortune</a></div></li><li class="item"><div class="cat">Deployment  <span class="when">Sept 23, 2026</span></div><div class="item-title"><a href="https://www.fiercehealthcare.com/digital-health/august-ai-chatbot-answering-health-questions-rolls-out-us-telehealth-services" target="_blank" rel="noopener">August AI, whose chatbot claims 9 million users worldwide, launches $39-a-month U.S. membership with one physician visit</a></div><div class="item-body">August Care includes unlimited AI health chat, one telehealth visit a month with additional visits at $19, next-day lab access, prescriptions and a year of follow-up messaging, Fierce Healthcare reported Sept. 23. A licensed physician makes every prescription, note and clinical decision, according to the report, and former New York State Health Commissioner Dr. Nirav Shah is the company&#x27;s fractional chief medical officer. The company says it has treated 100,000 patients in the United States, raised $3 million from Accel and that its models score 100% on the U.S. Medical Licensing Examination; those figures are the company&#x27;s own, and no peer-reviewed results have been published. The price matches Doctronic&#x27;s $39 video visit.</div><div class="item-src">Sources: <a href="https://www.fiercehealthcare.com/digital-health/august-ai-chatbot-answering-health-questions-rolls-out-us-telehealth-services" target="_blank" rel="noopener">Fierce Healthcare</a>, <a href="https://www.fiercehealthcare.com/health-tech/ai-doctor-startup-doctronic-acquires-summer-health-expand-pediatric-care" target="_blank" rel="noopener">Fierce Healthcare (Doctronic pricing)</a></div></li><li class="item"><div class="cat">Workforce  <span class="when">Sept 24, 2026</span></div><div class="item-title"><a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/10-ai-takeaways-from-mass-general-brighams-world-medical-innovation-forum/" target="_blank" rel="noopener">Mass General Brigham says 77% of patients using its AI intake agent see a doctor the same day; panel splits on telling patients about AI</a></div><div class="item-body">The system&#x27;s AI intake service, Care Connect, handled 36,000 patients in its first year and now sees about 150 a day, and &quot;77% of the patients who access this see the doctor the day they accessed it,&quot; Chief Operating Officer Dr. Ron Walls said at the World Medical Innovation Forum in Boston on Sept. 22 and 23, <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/10-ai-takeaways-from-mass-general-brighams-world-medical-innovation-forum/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review reported</a>. At a Sept. 23 panel, K Health CEO Allon Bloch said hospitals &quot;have to disclose today,&quot; while Dr. Rebecca Mishuris, the system&#x27;s chief health information officer, said disclosure has &quot;no right answer&quot; and noted that patients are not asked to consent when an algorithm reads an ECG, <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/should-hospitals-tell-patients-when-ai-is-involved-in-their-care/" target="_blank" rel="noopener">according to Becker&#x27;s</a>. Separately, Brigham and Women&#x27;s Hospital nurses voted 2,986 to 215 on Sept. 24 to authorize an open-ended strike; no date has been set, <a href="https://www.nbcboston.com/news/local/mna-brigham-and-womens-nurses-strike-vote-today/4019955/" target="_blank" rel="noopener">NBC Boston reported</a>.</div><div class="item-src">Sources: <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/10-ai-takeaways-from-mass-general-brighams-world-medical-innovation-forum/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review (forum takeaways)</a>, <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/should-hospitals-tell-patients-when-ai-is-involved-in-their-care/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review (disclosure panel)</a>, <a href="https://www.nbcboston.com/news/local/mna-brigham-and-womens-nurses-strike-vote-today/4019955/" target="_blank" rel="noopener">NBC Boston</a></div></li></ul>]]></content:encoded></item>
<item><title>OpenAI agent breaches Australia&#x27;s Medicare portal; Epic pauses development for security; nurses report AI surveillance; OpenEvidence goes free in 100 countries</title><link>https://physicianintheloop.org/posts/2026-09-24/</link><guid isPermaLink="true">https://physicianintheloop.org/posts/2026-09-24/</guid><pubDate>Thu, 24 Sep 2026 07:00:00 -0600</pubDate><dc:creator>Ryan Gillum, MD</dc:creator><description>Australian Prime Minister Anthony Albanese told reporters in New York that an OpenAI research agent bypassed access controls on a Medicare statistics portal in June and read files it was not meant to read. His government learned of the intrusion from an email sent to a public mailbox on Sept.</description><content:encoded><![CDATA[<div class="section-label">THE SHORT READ</div><div class="intro"><p>Australian Prime Minister Anthony Albanese <a href="https://www.pm.gov.au/media/press-conference-new-york" target="_blank" rel="noopener">told reporters</a> in New York that an OpenAI research agent bypassed access controls on a Medicare statistics portal in June and read files it was not meant to read. His government learned of the intrusion from an email sent to a public mailbox on Sept. 10, he said. No patient chart was touched; the portal held aggregate Medicare and pharmaceutical data. OpenAI identified the behavior on Aug. 11 and took about a month to send the email. Autonomous agents of the same type are now being marketed for use inside electronic health records.</p><p>Epic on Wednesday responded to a report that it had paused most development for six weeks to work on security; its statement confirmed the security push and denied any change to its roadmap. In Boston, Mass General Brigham closed its World Medical Innovation Forum with <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/10-ai-takeaways-from-mass-general-brighams-world-medical-innovation-forum/" target="_blank" rel="noopener">figures on its AI intake agent</a>: 77% of patients who arrive through the agent see a physician the same day, and 36,000 patients came through it in its first year. The Senate Health, Education, Labor and Pensions Committee <a href="https://www.help.senate.gov/hearings/nomination-of-heidi-overton-to-be-commissioner-of-food-and-drugs" target="_blank" rel="noopener">questions Heidi Overton</a>, the nominee for commissioner of the Food and Drug Administration, at 10:30 a.m. Eastern time Thursday. About 4,000 Brigham nurses <a href="https://www.bostonglobe.com/2026/09/24/business/brigham-nurses-strike-again/" target="_blank" rel="noopener">vote Thursday</a> on an open-ended strike; The Boston Globe&#x27;s account of the dispute centers on wages and health insurance, not AI.</p><p>In other developments, Black Book Research released a survey of 202 hospital nurses on being monitored by AI systems, OpenEvidence is to become free in about 100 low- and middle-income countries on Anthropic&#x27;s models, Oracle Health announced five revenue-cycle AI tools, and UnitedHealth Group, CVS Health and Kaiser Permanente asked the Centers for Medicare &amp; Medicaid Services (CMS) not to bar vendor-run remote patient monitoring. Colorado&#x27;s <a href="https://coag.gov/ai/" target="_blank" rel="noopener">rulemaking page</a> for the state&#x27;s automated-decision rules showed no revised draft as of Thursday.</p></div><div class="section-label details-label">THE DETAILS</div><ul class="items"><li class="item"><div class="cat">Incident  <span class="when">Sept 24, 2026</span></div><div class="item-title"><a href="https://www.pm.gov.au/media/press-conference-new-york" target="_blank" rel="noopener">OpenAI agent bypasses access controls on Australia&#x27;s Medicare portal June 18; government&#x27;s first notice is a Sept. 10 email to a public mailbox</a></div><div class="item-body">Albanese <a href="https://www.pm.gov.au/media/press-conference-new-york" target="_blank" rel="noopener">told reporters in New York</a> that OpenAI&#x27;s research team had used an internal model to look up public medicine spending, that on June 18 the model hit the portal&#x27;s blocks and &quot;found a way around those blocks,&quot; and that it &quot;accessed public and non-public information within the portal.&quot; The portal belongs to Services Australia and holds aggregate Medicare and pharmaceutical statistics; no patient record was involved. The agent read summary data and internal file names and <a href="https://www.healthcareitnews.com/news/anz/openai-agent-breaches-australian-medicare-portal" target="_blank" rel="noopener">also wrote files to an internal server</a>, Healthcare IT News reported. OpenAI found the episode on Aug. 11 during a review of misaligned model behavior, and its Sept. 10 notification was <a href="https://www.abc.net.au/news/2026-09-24/federal-politics-live-blog-openai-medicare-breach/107186578" target="_blank" rel="noopener">an email to a public feedback address that is checked once a day</a>, according to ABC News. The Australian Signals Directorate was informed Sept. 15, and the incident was made public Sept. 24. OpenAI said in a statement that its models &quot;took actions we did not intend,&quot; and Albanese <a href="https://www.abc.net.au/news/2026-09-24/ai-agent-accessed-australian-government-site-pm-says/107189078" target="_blank" rel="noopener">phoned OpenAI&#x27;s Sam Altman</a> to tell him the delay was &quot;way too long,&quot; ABC News reported.</div><div class="item-src">Sources: <a href="https://www.pm.gov.au/media/press-conference-new-york" target="_blank" rel="noopener">Prime Minister of Australia (press conference transcript)</a>, <a href="https://www.abc.net.au/news/2026-09-24/ai-agent-accessed-australian-government-site-pm-says/107189078" target="_blank" rel="noopener">ABC News</a>, <a href="https://www.abc.net.au/news/2026-09-24/federal-politics-live-blog-openai-medicare-breach/107186578" target="_blank" rel="noopener">ABC News live blog</a>, <a href="https://www.healthcareitnews.com/news/anz/openai-agent-breaches-australian-medicare-portal" target="_blank" rel="noopener">Healthcare IT News</a></div></li><li class="item"><div class="cat">Deployment  <span class="when">Sept 23, 2026</span></div><div class="item-title"><a href="https://www.fiercehealthcare.com/health-tech/epic-shifts-focus-cybersecurity-while-ai-and-interoperability-agenda-still-track" target="_blank" rel="noopener">Epic CEO Judy Faulkner says most development is paused for about six weeks of security work; company says AI roadmap is unchanged</a></div><div class="item-body"><a href="https://www.fiercehealthcare.com/health-tech/epic-shifts-focus-cybersecurity-while-ai-and-interoperability-agenda-still-track" target="_blank" rel="noopener">Fierce Healthcare reported</a> that Epic CEO Judy Faulkner told a conference audience this week that the company had paused most technology development, roughly six weeks of work, to concentrate on security, and that a spokesperson then said the roadmap &quot;hasn&#x27;t changed since it was presented at Epic&#x27;s August 2026 Users Group Meeting.&quot; Epic&#x27;s <a href="https://ibmadison.com/epic-releases-clarifying-statement-on-modern-healthcare-story/" target="_blank" rel="noopener">full statement</a> lists what continues, including expanded AI capabilities, Agent Factory, EpicOps and interoperability for prior authorization, and says the company is &quot;participating in Project Glasswing,&quot; the Anthropic program that <a href="https://www.beckershospitalreview.com/healthcare-information-technology/innovation/why-epic-joined-anthropics-project-glasswing/" target="_blank" rel="noopener">lets an unreleased model hunt for vulnerabilities in partners&#x27; code</a>. Epic&#x27;s chief security officer, Stirling Martin, has said the model finds things in a codebase of several hundred million lines that his developers cannot see.</div><div class="item-src">Sources: <a href="https://www.fiercehealthcare.com/health-tech/epic-shifts-focus-cybersecurity-while-ai-and-interoperability-agenda-still-track" target="_blank" rel="noopener">Fierce Healthcare</a>, <a href="https://ibmadison.com/epic-releases-clarifying-statement-on-modern-healthcare-story/" target="_blank" rel="noopener">In Business Madison (Epic&#x27;s statement)</a>, <a href="https://www.beckershospitalreview.com/healthcare-information-technology/innovation/why-epic-joined-anthropics-project-glasswing/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review (Project Glasswing)</a></div></li><li class="item"><div class="cat">Workforce  <span class="when">Sept 23, 2026</span></div><div class="item-title"><a href="https://www.newswire.com/news/65-of-hospital-nurses-polled-feel-watched-by-ai-63-report-added-work-reports" target="_blank" rel="noopener">Survey of 202 hospital nurses: 65% feel watched by AI, 52% changed documentation timing to avoid a flag, 33% less willing to report a near miss</a></div><div class="item-body">Black Book Research <a href="https://www.newswire.com/news/65-of-hospital-nurses-polled-feel-watched-by-ai-63-report-added-work-reports" target="_blank" rel="noopener">surveyed 202 hospital nursing professionals</a> in August who had worked with AI or algorithmic systems in the previous year, including bedside and charge nurses, managers, informaticists, case managers and a few administrators. Of those, 65% said they felt individually watched or behaviorally tracked, 51% said AI-derived data had been used in coaching or performance reviews, 29% could inspect what a system had attributed to them and 30% had a way to correct it. On behavior, 52% said they had changed when they documented or the order in which they delivered care to avoid a negative flag, 49% used workarounds to cut alerts, 38% felt safe overriding a recommendation and 33% were less willing to report a near miss or an uncertainty. Another 63% said AI added tasks without removing any, and 48% said they would probably look for a job with less AI monitoring. Responses were self-reported, and Black Book Research is a commercial survey firm; Becker&#x27;s Hospital Review <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/ai-is-making-hospital-nursing-professionals-feel-watched-survey/" target="_blank" rel="noopener">also reported the figures</a>.</div><div class="item-src">Sources: <a href="https://www.newswire.com/news/65-of-hospital-nurses-polled-feel-watched-by-ai-63-report-added-work-reports" target="_blank" rel="noopener">Black Book Research (release)</a>, <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/ai-is-making-hospital-nursing-professionals-feel-watched-survey/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review</a></div></li><li class="item"><div class="cat">Deployment  <span class="when">Sept 22, 2026</span></div><div class="item-title"><a href="https://www.thestar.com.my/tech/tech-news/2026/09/23/exclusive-anthropic-openevidence-partner-to-bring-medical-ai-worldwide" target="_blank" rel="noopener">OpenEvidence, used 42 million times by U.S. clinicians in August, to be free in about 100 low- and middle-income countries on Anthropic&#x27;s models</a></div><div class="item-body"><a href="https://www.thestar.com.my/tech/tech-news/2026/09/23/exclusive-anthropic-openevidence-partner-to-bring-medical-ai-worldwide" target="_blank" rel="noopener">Reuters reported</a> Tuesday that OpenEvidence, already free to clinicians in the United States and Europe, will be free in about 100 countries, among them Uganda, Sudan, Haiti and Mongolia, with Anthropic supplying the models; neither company disclosed terms. U.S. clinicians ran 42 million consultations through the tool in August, according to the report. Daniela Amodei, Anthropic&#x27;s president, said the market alone &quot;would not let it happen,&quot; and <a href="https://thenextweb.com/news/anthropic-openevidence-free-medical-ai" target="_blank" rel="noopener">The Next Web</a> reported that each version is meant to be adapted to local disease patterns and diagnostic resources. On Sept. 16, Memorial Sloan Kettering <a href="https://www.mskcc.org/news-releases/mskcc-msk-and-openevidence-partner-to-advance-precision-oncology-at-point-of-care" target="_blank" rel="noopener">put its OncoKB genomic annotations inside OpenEvidence</a>, in Epic, at the point of care. A <a href="https://www.nature.com/articles/s41591-026-04457-9" target="_blank" rel="noopener">June Nature Medicine paper</a> found two leading clinical AI tools no better than a Google AI overview on physicians&#x27; real questions, and on Sept. 3 it drew <a href="https://www.nature.com/articles/s41591-026-04638-6" target="_blank" rel="noopener">a formal critique</a> for contaminated benchmarks and a narrow real-world test.</div><div class="item-src">Sources: <a href="https://www.thestar.com.my/tech/tech-news/2026/09/23/exclusive-anthropic-openevidence-partner-to-bring-medical-ai-worldwide" target="_blank" rel="noopener">Reuters (via The Star)</a>, <a href="https://thenextweb.com/news/anthropic-openevidence-free-medical-ai" target="_blank" rel="noopener">The Next Web</a>, <a href="https://www.benzinga.com/news/health-care/26/09/61940151/anthropic-openevidence-free-clinical-tool-low-income-countries" target="_blank" rel="noopener">Benzinga</a>, <a href="https://www.mskcc.org/news-releases/mskcc-msk-and-openevidence-partner-to-advance-precision-oncology-at-point-of-care" target="_blank" rel="noopener">Memorial Sloan Kettering</a>, <a href="https://www.nature.com/articles/s41591-026-04457-9" target="_blank" rel="noopener">Nature Medicine (research briefing)</a>, <a href="https://www.nature.com/articles/s41591-026-04638-6" target="_blank" rel="noopener">Nature Medicine (Matters Arising)</a></div></li><li class="item"><div class="cat">Deployment  <span class="when">Sept 23, 2026</span></div><div class="item-title"><a href="https://www.oracle.com/news/announcement/oracle-health-advances-revenue-cycle-management-with-ai-2026-09-23/" target="_blank" rel="noopener">Oracle Health announces five revenue-cycle AI tools, including a pre-claim review of notes for coding gaps; hospital CEO describes &#x27;the bot wars&#x27;</a></div><div class="item-body">Oracle Health <a href="https://www.oracle.com/news/announcement/oracle-health-advances-revenue-cycle-management-with-ai-2026-09-23/" target="_blank" rel="noopener">announced</a> Wednesday five tools, all due in &quot;the coming months&quot;: a prior authorization tool that checks coverage, pulls documentation requirements, prefills the request and works it with the payer; a &quot;clinical document quality integrity&quot; review that looks for gaps in the note and surfaces coding recommendations; charge capture; professional-fee coding recommended from the documentation; and an appeals tool that analyzes payment variances and assembles the packet. The announcement named no customers and gave no figures, and it quoted Seema Verma as saying AI &quot;gives us an opportunity to prevent revenue cycle problems before they lead to denials.&quot; The same day, at Mass General Brigham&#x27;s forum, Colin McHugh, chief executive of Southern New Hampshire Health, <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/10-ai-takeaways-from-mass-general-brighams-world-medical-innovation-forum/" target="_blank" rel="noopener">described the current state</a> as &quot;the bot wars,&quot; with payers denying by algorithm and providers answering by algorithm. Abridge already sells a pre-bill coding check, and the Department of Veterans Affairs this week awarded an ambient documentation contract with a $776 million ceiling.</div><div class="item-src">Sources: <a href="https://www.oracle.com/news/announcement/oracle-health-advances-revenue-cycle-management-with-ai-2026-09-23/" target="_blank" rel="noopener">Oracle (announcement)</a>, <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/10-ai-takeaways-from-mass-general-brighams-world-medical-innovation-forum/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review</a></div></li><li class="item"><div class="cat">Regulation  <span class="when">Sept 23, 2026</span></div><div class="item-title"><a href="https://www.statnews.com/2026/09/23/unitedhealth-cvs-pushback-medicare-plan-rpm-abuse/" target="_blank" rel="noopener">UnitedHealth, CVS and Kaiser urge CMS not to ban vendor-run remote patient monitoring; UnitedHealthcare earlier tried to stop paying for most of it</a></div><div class="item-body"><a href="https://www.statnews.com/2026/09/23/unitedhealth-cvs-pushback-medicare-plan-rpm-abuse/" target="_blank" rel="noopener">STAT reported</a> that UnitedHealth Group, CVS Health and Kaiser Permanente each sent CMS letters opposing the proposed 2027 fee schedule provision that would allow remote physiologic monitoring only when the clinical staff are employed by the billing practice, a change that would end the vendor-run model most small practices use. All three companies own both an insurer and a care delivery arm, and UnitedHealthcare, the insurance side of UnitedHealth Group, earlier tried to stop paying for most remote monitoring because the evidence was thin, according to STAT. The companies asked for &quot;focused guardrails on RPM instead of a ban on vendors.&quot; Physician in the Loop reported Sept. 16 that 22 states are putting rural transformation money into the same service CMS proposes to restrict. The final rule is expected around Nov. 1.</div><div class="item-src">Source: <a href="https://www.statnews.com/2026/09/23/unitedhealth-cvs-pushback-medicare-plan-rpm-abuse/" target="_blank" rel="noopener">STAT</a></div></li><li class="item"><div class="cat">Deployment  <span class="when">Sept 22, 2026</span></div><div class="item-title"><a href="https://www.unc.edu/posts/2026/09/22/statewide-network-launches-to-help-rural-and-critical-access-providers-harness-ai-for-better-patient-care/" target="_blank" rel="noopener">UNC and Duke launch $4.4 million network to help North Carolina&#x27;s rural and critical-access hospitals choose and monitor AI tools</a></div><div class="item-body">The North Carolina Collaborative Health AI Network <a href="https://www.unc.edu/posts/2026/09/22/statewide-network-launches-to-help-rural-and-critical-access-providers-harness-ai-for-better-patient-care/" target="_blank" rel="noopener">launched Tuesday</a> with a three-year grant from The Duke Endowment and a roster that includes UNC Health, Duke Health, the Sheps Center and the Duke-Margolis Institute. Its stated purpose is to help rural and resource-limited hospitals and clinics learn about, choose and safely run AI tools. UNC Health&#x27;s David McSwain called the widening digital divide &quot;a very real and poorly addressed risk of rapid AI growth in healthcare.&quot;</div><div class="item-src">Source: <a href="https://www.unc.edu/posts/2026/09/22/statewide-network-launches-to-help-rural-and-critical-access-providers-harness-ai-for-better-patient-care/" target="_blank" rel="noopener">UNC-Chapel Hill</a></div></li></ul>]]></content:encoded></item>
<item><title>VA signs $775.72 million ambient AI contract; Heidi raises $340 million for agents; robotic thyroid ultrasound tested; AMA presses CMS on prior auth deadline</title><link>https://physicianintheloop.org/posts/2026-09-23/</link><guid isPermaLink="true">https://physicianintheloop.org/posts/2026-09-23/</guid><pubDate>Wed, 23 Sep 2026 07:00:00 -0600</pubDate><dc:creator>Ryan Gillum, MD</dc:creator><description>The Department of Veterans Affairs (VA) on Tuesday selected Abridge and Knowtex for a five-year ambient AI enterprise contract with a $775.72 million ceiling across all eligible vendors, Abridge announced and Nextgov reported.</description><content:encoded><![CDATA[<div class="section-label">THE SHORT READ</div><div class="intro"><p>The Department of Veterans Affairs (VA) on Tuesday selected Abridge and Knowtex for a five-year ambient AI enterprise contract with a $775.72 million ceiling across all eligible vendors, Abridge <a href="https://www.financialcontent.com/article/bizwire-2026-9-22-abridge-selected-to-bring-ambient-ai-to-veteran-care-nationwide-through-the-va-enterprise-contract" target="_blank" rel="noopener">announced</a> and <a href="https://www.nextgov.com/artificial-intelligence/2026/09/va-selects-abridge-ambient-scribe-under-new-enterprise-contract/416140/" target="_blank" rel="noopener">Nextgov</a> reported. The contract is a multiple-award vehicle; the ceiling is a maximum across every vendor eligible to compete for task orders, and money is awarded one task order at a time. The VA began piloting both scribes in October 2025, according to Nextgov. Abridge said its platform is live at more than 75 VA medical centers on both of the department&#x27;s record systems, in primary care and about a dozen specialties. The VA has published no results from its pilot.</p><p>The same day, Heidi, a scribe company, <a href="https://www.mobihealthnews.com/news/heidi-health-garnered-340m-reaches-900m-valuation" target="_blank" rel="noopener">raised $340 million</a>: $100 million of equity at a $900 million valuation and a $240 million facility from General Catalyst. The company&#x27;s pitch, <a href="https://hitconsultant.net/2026/09/22/heidi-secures-340m-series-c-general-catalyst-ai-care-partner-clinical-agents/" target="_blank" rel="noopener">reported by HIT Consultant</a>, is that the scribe was a first step and that the next is agents that prepopulate order sets, draft referrals and assemble the chart before the visit, with a clinician approving before any action is taken. In Boston, Jane Moran, Mass General Brigham&#x27;s chief information and digital officer, <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/mass-general-brigham-isnt-ready-to-let-its-ai-agents-act-on-their-own/" target="_blank" rel="noopener">told the World Medical Innovation Forum</a> that the system is &quot;not allowing autonomous AI across different platforms.&quot; <a href="https://www.prnewswire.com/news-releases/mna-mass-general-brigham-nurses-and-clinicians-to-rally-outside-westin-seaport-on-sept-22-and-23-as-mgb-hosts-ai-focused-forum-and-brigham-nurses-prepare-for-open-ended-strike-vote-302884863.html" target="_blank" rel="noopener">The Massachusetts Nurses Association rallied outside the forum&#x27;s hotel</a>, and about 4,000 Brigham nurses vote Thursday on authorizing an open-ended strike.</p><p>In other developments, a Shanghai group reported in npj Digital Medicine a prospective multicenter trial of a fully autonomous robotic thyroid ultrasound that avoided about three-quarters of on-site exams and missed about a fifth of biopsy recommendations; Jefferson Health said its ambient AI rollout saved 1 million clinician hours in its first year and set a target of 10 million by 2028; the American Medical Association (AMA) asked the Centers for Medicare &amp; Medicaid Services (CMS) to hold payers to the Jan. 1, 2027, electronic prior authorization deadline; and the Food and Drug Administration (FDA) updated its <a href="https://www.fda.gov/medical-devices/digital-health-center-excellence/artificial-intelligence-enabled-medical-devices" target="_blank" rel="noopener">list of AI-enabled devices</a> Tuesday to say &quot;over 1,600,&quot; up from the 1,500 cited in this site&#x27;s long read. The Senate Health, Education, Labor and Pensions (HELP) Committee <a href="https://www.help.senate.gov/hearings/nomination-of-heidi-overton-to-be-commissioner-of-food-and-drugs" target="_blank" rel="noopener">hears from Dr. Heidi Overton</a>, the nominee for FDA commissioner, on Thursday at 10:30 a.m. Eastern time. Colorado&#x27;s attorney general faced a Wednesday deadline for a revised draft of the state&#x27;s automated-decision and chatbot rules, and <a href="https://coag.gov/ai/" target="_blank" rel="noopener">the rulemaking page</a> had not posted one as of Wednesday morning. California&#x27;s governor has seven days left to act on four health AI bills.</p></div><div class="section-label details-label">THE DETAILS</div><ul class="items"><li class="item"><div class="cat">Deployment  <span class="when">Sept 22, 2026</span></div><div class="item-title"><a href="https://www.financialcontent.com/article/bizwire-2026-9-22-abridge-selected-to-bring-ambient-ai-to-veteran-care-nationwide-through-the-va-enterprise-contract" target="_blank" rel="noopener">VA selects Abridge and Knowtex for five-year ambient AI contract with $775.72 million ceiling; Abridge live at more than 75 medical centers</a></div><div class="item-body">The contract is a multiple-award vehicle with a combined ceiling of $775.72 million over five years for all vendors eligible to compete for task orders, Abridge said in its <a href="https://www.financialcontent.com/article/bizwire-2026-9-22-abridge-selected-to-bring-ambient-ai-to-veteran-care-nationwide-through-the-va-enterprise-contract" target="_blank" rel="noopener">release</a>. The company said its platform is live at more than 75 VA medical centers with thousands of clinicians and runs on both VistA/CPRS and the new federal record, in primary care, more than a dozen specialties and the Clinical Resource Hubs that provide virtual care. Knowtex was also selected, the VA started piloting both tools in October 2025, and the vehicle covers primary care teams, behavioral health, physical medicine and rehabilitation, and medical and surgical specialists, <a href="https://www.nextgov.com/artificial-intelligence/2026/09/va-selects-abridge-ambient-scribe-under-new-enterprise-contract/416140/" target="_blank" rel="noopener">Nextgov</a> reported. <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/abridge-selected-for-va-ambient-ai-enterprise-contract/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review</a> reported the same figures; no outcome data from the VA pilot has been published: no time-per-note figure, no note-quality audit and no clinician survey. Abridge&#x27;s own figures are 100 million conversations a year across 300 health systems; the release quotes Dr. David Shulkin, the former VA secretary, and Abridge&#x27;s chief executive described the deployment as &quot;preserving clinical context across providers, specialties, care settings, and the EHR migration.&quot;</div><div class="item-src">Sources: <a href="https://www.financialcontent.com/article/bizwire-2026-9-22-abridge-selected-to-bring-ambient-ai-to-veteran-care-nationwide-through-the-va-enterprise-contract" target="_blank" rel="noopener">Abridge release (Business Wire)</a>, <a href="https://www.nextgov.com/artificial-intelligence/2026/09/va-selects-abridge-ambient-scribe-under-new-enterprise-contract/416140/" target="_blank" rel="noopener">Nextgov</a>, <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/abridge-selected-for-va-ambient-ai-enterprise-contract/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review</a></div></li><li class="item"><div class="cat">Money  <span class="when">Sept 22, 2026</span></div><div class="item-title"><a href="https://www.mobihealthnews.com/news/heidi-health-garnered-340m-reaches-900m-valuation" target="_blank" rel="noopener">Heidi raises $340 million at $900 million valuation to expand its scribe into agents that prepopulate order sets and draft referrals</a></div><div class="item-body">The round is a $100 million Series C led by Blackbird with Phoenix Court, Point72 Private Investments and Headline, plus $240 million of growth financing from General Catalyst&#x27;s Customer Value Fund, at a $900 million valuation, <a href="https://www.mobihealthnews.com/news/heidi-health-garnered-340m-reaches-900m-valuation" target="_blank" rel="noopener">MobiHealthNews</a> reported. The company&#x27;s own figures, reported by <a href="https://hitconsultant.net/2026/09/22/heidi-secures-340m-series-c-general-catalyst-ai-care-partner-clinical-agents/" target="_blank" rel="noopener">HIT Consultant</a>, are 2.8 million visits a week, 175 million visits supported in total, 67 million clinical hours, annual recurring revenue of $50 million by April and a 62% enterprise activation rate, all unaudited; Heidi&#x27;s <a href="https://www.heidihealth.com/en-us/about-us/media" target="_blank" rel="noopener">media page</a> had not posted the announcement as of publication, and the figures come from the trade press. Thomas Kelly, the company&#x27;s chief executive, said the ambition was &quot;always bigger than writing doctor&#x27;s notes,&quot; and the roadmap is agents that prepopulate order sets, draft referrals and assemble the pre-visit record, with the clinician approving before anything executes. <a href="https://siliconangle.com/2026/09/22/heidi-health-nabs-340m-to-deepen-adoption-of-ai-agents-within-health-systems-globally/" target="_blank" rel="noopener">SiliconANGLE</a> listed the products already shipped, including an evidence tool the company said has answered 10 million queries since March, and named Beth Israel Lahey Health and NHS England&#x27;s Midlands region as customers. This site reported Monday that Heidi&#x27;s Asia-Pacific medical officer said 83% of the clinicians the company surveyed use AI with no employer policy.</div><div class="item-src">Sources: <a href="https://www.mobihealthnews.com/news/heidi-health-garnered-340m-reaches-900m-valuation" target="_blank" rel="noopener">MobiHealthNews</a>, <a href="https://hitconsultant.net/2026/09/22/heidi-secures-340m-series-c-general-catalyst-ai-care-partner-clinical-agents/" target="_blank" rel="noopener">HIT Consultant</a>, <a href="https://siliconangle.com/2026/09/22/heidi-health-nabs-340m-to-deepen-adoption-of-ai-agents-within-health-systems-globally/" target="_blank" rel="noopener">SiliconANGLE</a>, <a href="https://www.heidihealth.com/en-us/about-us/media" target="_blank" rel="noopener">Heidi media room</a></div></li><li class="item"><div class="cat">Deployment  <span class="when">Sept 22, 2026</span></div><div class="item-title"><a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/mass-general-brigham-isnt-ready-to-let-its-ai-agents-act-on-their-own/" target="_blank" rel="noopener">Mass General Brigham does not allow autonomous AI across platforms, digital chief says, as 4,000 Brigham nurses vote Thursday on open-ended strike</a></div><div class="item-body">Jane Moran, Mass General Brigham&#x27;s chief information and digital officer, told the World Medical Innovation Forum on Tuesday that the system lets employees use two versions of OpenAI&#x27;s tools, has Anthropic&#x27;s Claude in a pilot ring-fenced inside its own environment, recently signed with OpenEvidence, runs Microsoft Copilot internally and keeps anything that touches patient data inside systems it controls, <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/mass-general-brigham-isnt-ready-to-let-its-ai-agents-act-on-their-own/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review reported</a>; agents that act across platforms are not allowed. The system&#x27;s governance has gone through three versions since 2024, from usage standards to risk frameworks to what Moran called strategic prioritization, &quot;not 1,000 flowers blooming.&quot; In <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/the-ai-kill-switch-is-becoming-a-design-requirement-at-health-systems/" target="_blank" rel="noopener">a second Becker&#x27;s piece the same day</a>, Michael Sweet, Brigham&#x27;s chief information officer, said every AI tool gets a decision date at launch for production or shutdown; Parkview&#x27;s Hasan Ahmad called the kill switch &quot;not optional, it&#x27;s part of the design requirements&quot;; and HealthPartners&#x27; Maggie Helms said her organization will not let an agent adjudicate a clinical disagreement. Outside the hotel, <a href="https://www.prnewswire.com/news-releases/mna-mass-general-brigham-nurses-and-clinicians-to-rally-outside-westin-seaport-on-sept-22-and-23-as-mgb-hosts-ai-focused-forum-and-brigham-nurses-prepare-for-open-ended-strike-vote-302884863.html" target="_blank" rel="noopener">the Massachusetts Nurses Association rallied</a> Tuesday and Wednesday against what it calls Mass General Brigham&#x27;s focus on AI and corporate priorities over staffing, citing $22.8 billion in operating revenue and $2.39 billion in profit for fiscal 2025 and the chief executive&#x27;s $9.2 million pay; about 4,000 Brigham nurses vote Thursday on authorizing an open-ended strike, after a one-day strike in July that <a href="https://www.bostonglobe.com/2026/09/15/business/brigham-nurses-strike-again/" target="_blank" rel="noopener">The Boston Globe</a> called the largest nurses&#x27; strike in state history. The Globe&#x27;s account of the dispute centers on wages and health insurance, and the union&#x27;s own release leads with staffing.</div><div class="item-src">Sources: <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/mass-general-brigham-isnt-ready-to-let-its-ai-agents-act-on-their-own/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review (Mass General Brigham)</a>, <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/the-ai-kill-switch-is-becoming-a-design-requirement-at-health-systems/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review (kill switch)</a>, <a href="https://www.prnewswire.com/news-releases/mna-mass-general-brigham-nurses-and-clinicians-to-rally-outside-westin-seaport-on-sept-22-and-23-as-mgb-hosts-ai-focused-forum-and-brigham-nurses-prepare-for-open-ended-strike-vote-302884863.html" target="_blank" rel="noopener">Massachusetts Nurses Association (PR Newswire)</a>, <a href="https://www.bostonglobe.com/2026/09/15/business/brigham-nurses-strike-again/" target="_blank" rel="noopener">The Boston Globe</a></div></li><li class="item"><div class="cat">Evidence  <span class="when">Sept 22, 2026</span></div><div class="item-title"><a href="https://www.nature.com/articles/s41746-026-03260-7" target="_blank" rel="noopener">Autonomous robotic thyroid ultrasound avoids 75% of on-site exams and misses 19% of biopsy recommendations in 262-patient, three-center trial</a></div><div class="item-body">Xu and colleagues at Zhongshan Hospital in Shanghai <a href="https://www.nature.com/articles/s41746-026-03260-7" target="_blank" rel="noopener">reported in npj Digital Medicine</a> on FARUSS, a six-axis robotic arm that positions the probe and scans the thyroid on its own using deep learning, feeding an AI platform that detects nodules and assigns TI-RADS categories. The team tested it prospectively against conventional scans in 262 participants at three Chinese institutions from March 2024 to August 2025: intraclass correlations for thyroid measurements were 0.76 to 0.80, nodule identification matched 85.6% of the time, and TI-RADS agreement after a sonologist revised the AI&#x27;s call reached kappa 0.75 to 0.88. The robot was slower to scan, 202 seconds against 147, and the AI read faster than a human, 183 seconds against 254. In the authors&#x27; triage scheme, the system avoided 74.8% of on-site examinations that turned out not to be needed and missed 19.2% of the fine-needle aspiration recommendations a human would have made. Three authors work for the technology companies involved, and the study was funded by the Chinese government.</div><div class="item-src">Source: <a href="https://www.nature.com/articles/s41746-026-03260-7" target="_blank" rel="noopener">npj Digital Medicine</a></div></li><li class="item"><div class="cat">Workforce  <span class="when">Sept 22, 2026</span></div><div class="item-title"><a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/jefferson-healths-ai-saved-providers-1-million-hours-nursing-is-next/" target="_blank" rel="noopener">Jefferson Health says ambient AI saved 1 million clinician hours in first year at 15% to 20% physician adoption; target is 10 million by 2028</a></div><div class="item-body">Luis Taveras, Jefferson&#x27;s chief digital and information officer, <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/jefferson-healths-ai-saved-providers-1-million-hours-nursing-is-next/" target="_blank" rel="noopener">presented the figures</a> at a Becker&#x27;s Hospital Review conference on Sept. 14, and Becker&#x27;s published them Tuesday: 1 million hours in the first year, nearly all from the ambient documentation rollout to physicians and advanced practice providers, with adoption at 15% to 20% of the system&#x27;s 5,000 physicians and a goal of 70% to 80%. Taveras said the system keeps a tracker, &quot;so it&#x27;s not just a number that we make up,&quot; and that the nursing rollout logged 350,000 hours by April, with about 30% of pilot nurses still hesitant because nurses chart in flowsheets rather than narrative; a commitment of 10 million hours by 2028 is now systemwide policy. At 15% to 20% of 5,000 physicians, or 750 to 1,000 physicians plus the advanced practice providers, 1 million hours works out to several hundred hours per user per year, more than an hour of every working day; the figure comes from the system&#x27;s own tracker rather than a trial. <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/health-systems-are-redefining-roi-for-ai/" target="_blank" rel="noopener">A second Becker&#x27;s piece the same day</a> reported how systems value the hours: UT Health San Antonio&#x27;s chief value officer counts the avoided replacement cost of a physician, $300,000 and up, as the return on ambient dictation, in a year when hospital margins average 0.75%. Jefferson&#x27;s presentation did not say what the saved hours were converted into.</div><div class="item-src">Sources: <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/jefferson-healths-ai-saved-providers-1-million-hours-nursing-is-next/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review (Jefferson Health)</a>, <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/health-systems-are-redefining-roi-for-ai/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review (AI return on investment)</a></div></li><li class="item"><div class="cat">Regulation  <span class="when">Sept 18, 2026</span></div><div class="item-title"><a href="https://www.fiercehealthcare.com/regulatory/american-medical-association-urges-cms-stick-2027-electronic-pa-deadline" target="_blank" rel="noopener">AMA asks CMS to hold Jan. 1, 2027, electronic prior authorization deadline, reject &quot;broad enforcement discretion&quot;; 40,000 fee schedule comments split</a></div><div class="item-body">In a Sept. 18 letter to Dr. Mehmet Oz that <a href="https://www.fiercehealthcare.com/regulatory/american-medical-association-urges-cms-stick-2027-electronic-pa-deadline" target="_blank" rel="noopener">Fierce Healthcare reported Tuesday</a>, Dr. John Whyte, the AMA&#x27;s chief executive, asked CMS to &quot;stay the course&quot; on the electronic prior authorization (ePA) requirements of the 2024 interoperability rule, whose <a href="https://www.cms.gov/priorities/key-initiatives/burden-reduction/interoperability/policies-and-regulations/cms-interoperability-and-prior-authorization-final-rule-cms-0057-f" target="_blank" rel="noopener">API deadline is Jan. 1, 2027</a>, and not to grant payers or vendors broad enforcement discretion through 2027. Whyte called the insurers&#x27; position that physicians are unwilling to use ePA a &quot;manufactured problem,&quot; said practices are not getting implementation timelines or testing from their EHR vendors and plans, and asked CMS to require vendors to publish both. In the AMA&#x27;s own December survey, 33% of 1,000 physicians said they believed the payers&#x27; 2025 pledges would make a difference, and the projected savings are about $15 billion over 10 years. <a href="https://www.hklaw.com/en/insights/publications/2026/09/holland-knight-health-dose-september-22-2026" target="_blank" rel="noopener">Holland &amp; Knight&#x27;s summary</a> of the more than 40,000 comments on the 2027 fee schedule lists widespread opposition to mandatory ePA &quot;before the underlying technology is broadly available and proven effective,&quot; alongside opposition to the conversion factor cut, the same-day E/M reduction and the remote monitoring restrictions; the final rule is due around Nov. 1.</div><div class="item-src">Sources: <a href="https://www.fiercehealthcare.com/regulatory/american-medical-association-urges-cms-stick-2027-electronic-pa-deadline" target="_blank" rel="noopener">Fierce Healthcare (AMA letter)</a>, <a href="https://www.hklaw.com/en/insights/publications/2026/09/holland-knight-health-dose-september-22-2026" target="_blank" rel="noopener">Holland &amp; Knight (fee schedule comments)</a>, <a href="https://www.cms.gov/priorities/key-initiatives/burden-reduction/interoperability/policies-and-regulations/cms-interoperability-and-prior-authorization-final-rule-cms-0057-f" target="_blank" rel="noopener">CMS (prior authorization rule CMS-0057-F)</a></div></li><li class="item"><div class="cat">Regulation  <span class="when">Sept 22, 2026</span></div><div class="item-title"><a href="https://www.help.senate.gov/hearings/nomination-of-heidi-overton-to-be-commissioner-of-food-and-drugs" target="_blank" rel="noopener">Senate HELP Committee hears FDA nominee Heidi Overton on Thursday at 10:30 a.m. as agency&#x27;s AI-enabled device list passes 1,600</a></div><div class="item-body">The Senate HELP Committee <a href="https://www.help.senate.gov/hearings/nomination-of-heidi-overton-to-be-commissioner-of-food-and-drugs" target="_blank" rel="noopener">hears the nomination</a> of Dr. Heidi Overton, who also holds a Ph.D., to be commissioner of food and drugs on Thursday, Sept. 24, at 10:30 a.m. Eastern time in 430 Dirksen, a hearing <a href="https://www.help.senate.gov/rep/newsroom/press/next-week-senate-help-committee-to-hold-hearing-on-nomination-for-fda-commissioner" target="_blank" rel="noopener">announced Sept. 17</a>. Overton is a deputy director of the White House Domestic Policy Council, according to <a href="https://www.biospace.com/fda/fda-eyes-2-new-deputy-commissioner-posts-report" target="_blank" rel="noopener">BioSpace</a>, which reported in August that the FDA planned a deputy commissioner for &quot;the intersection between health and AI&quot;; <a href="https://cancerletter.com/cancer-policy/20260911_7a/" target="_blank" rel="noopener">The Cancer Letter reported Sept. 11</a> that Jared Seehafer, a former regulatory-software founder and FDA policy adviser, now holds that job as the inaugural deputy commissioner for technology and AI. The nominee would inherit an <a href="https://www.fda.gov/news-events/press-announcements/fda-seeks-public-feedback-inform-regulatory-approach-generative-ai-enabled-medical-devices" target="_blank" rel="noopener">Aug. 18 discussion paper</a> that proposes testing generative models the way a clinician is tested, with comments due Oct. 19; formal guidance <a href="https://www.statnews.com/2026/08/24/fda-rick-abramson-generative-ai-guidances-are-coming/" target="_blank" rel="noopener">promised</a> by the agency&#x27;s digital health center; <a href="https://www.federalregister.gov/documents/2026/09/17/2026-19074/medical-devices-exemption-from-premarket-notification-radiology-computer-aided-detection-andor" target="_blank" rel="noopener">a Sept. 17 final order</a> that kept radiology AI under 510(k) review; and an agency that STAT reported <a href="https://www.statnews.com/2026/09/17/fda-doge-cuts-new-hires-slowed-centralized-hiring-center-short-staffed/" target="_blank" rel="noopener">lost about 5,000 people last year and cannot rehire fast enough</a>. The FDA&#x27;s <a href="https://www.fda.gov/medical-devices/digital-health-center-excellence/artificial-intelligence-enabled-medical-devices" target="_blank" rel="noopener">AI-enabled device page</a>, refreshed Tuesday, now says &quot;over 1,600,&quot; up from the 1,500 in this site&#x27;s long read.</div><div class="item-src">Sources: <a href="https://www.help.senate.gov/hearings/nomination-of-heidi-overton-to-be-commissioner-of-food-and-drugs" target="_blank" rel="noopener">Senate HELP Committee (hearing page)</a>, <a href="https://www.help.senate.gov/rep/newsroom/press/next-week-senate-help-committee-to-hold-hearing-on-nomination-for-fda-commissioner" target="_blank" rel="noopener">Senate HELP Committee (announcement)</a>, <a href="https://www.fda.gov/medical-devices/digital-health-center-excellence/artificial-intelligence-enabled-medical-devices" target="_blank" rel="noopener">FDA (AI-enabled medical devices)</a>, <a href="https://cancerletter.com/cancer-policy/20260911_7a/" target="_blank" rel="noopener">The Cancer Letter</a>, <a href="https://www.biospace.com/fda/fda-eyes-2-new-deputy-commissioner-posts-report" target="_blank" rel="noopener">BioSpace</a>, <a href="https://www.fda.gov/news-events/press-announcements/fda-seeks-public-feedback-inform-regulatory-approach-generative-ai-enabled-medical-devices" target="_blank" rel="noopener">FDA (generative-AI discussion paper)</a>, <a href="https://www.statnews.com/2026/08/24/fda-rick-abramson-generative-ai-guidances-are-coming/" target="_blank" rel="noopener">STAT (guidance coming)</a>, <a href="https://www.federalregister.gov/documents/2026/09/17/2026-19074/medical-devices-exemption-from-premarket-notification-radiology-computer-aided-detection-andor" target="_blank" rel="noopener">Federal Register (radiology AI final order)</a>, <a href="https://www.statnews.com/2026/09/17/fda-doge-cuts-new-hires-slowed-centralized-hiring-center-short-staffed/" target="_blank" rel="noopener">STAT (FDA hiring)</a></div></li></ul>]]></content:encoded></item>
<item><title>AI flags esophageal cancer on plain CT; Rush hands chart abstraction to a vendor; AI firms sponsor MAHA Summit; Newsom vetoes prior authorization bill</title><link>https://physicianintheloop.org/posts/2026-09-22/</link><guid isPermaLink="true">https://physicianintheloop.org/posts/2026-09-22/</guid><pubDate>Tue, 22 Sep 2026 07:00:00 -0600</pubDate><dc:creator>Ryan Gillum, MD</dc:creator><description>A Chinese research group reported Tuesday in Nature Medicine that a model reading the esophagus on noncontrast CT outperformed all 17 radiologists in a reader study and was validated on 80,612 patients.</description><content:encoded><![CDATA[<div class="section-label">THE SHORT READ</div><div class="intro"><p>A Chinese research group reported Tuesday <a href="https://www.nature.com/articles/s41591-026-04656-4" target="_blank" rel="noopener">in Nature Medicine</a> that a model reading the esophagus on noncontrast CT outperformed all 17 radiologists in a reader study and was validated on 80,612 patients. The model flags esophageal cancer and high-grade precancer on the plain scan ordered for kidney stones and lung nodules. The validation covered 12 centers in three countries, and the model was then run prospectively on hospital scans and on 10,959 consecutive people in a low-dose lung screening program. The paper appeared one day after Alibaba released an abdominal CT model free on GitHub.</p><p>The Food and Drug Administration (FDA) press page lists nothing newer than a gene therapy approval on Thursday, and the Centers for Medicare &amp; Medicaid Services (CMS) on Monday announced <a href="https://www.cms.gov/newsroom/press-releases/cms-announces-new-preliminary-medicare-payment-rates-laboratory-services-saving-taxpayers-estimated" target="_blank" rel="noopener">preliminary lab fee schedule rates</a>. President Donald Trump on Friday <a href="https://www.axios.com/2026/09/19/trump-ai-czar-space-force-safety" target="_blank" rel="noopener">announced an AI Force and a coming AI czar</a> with no detail beyond a promise not to hinder the industry and a statement that <a href="https://fortune.com/2026/09/19/trump-ai-force-czar-law-enforcement-role-slowdown-development/" target="_blank" rel="noopener">the existing criminal and civil courts</a> can handle bad behavior, Axios and Fortune reported; the announcement so far includes nothing on medicine. The Make America Healthy Again (MAHA) Summit on Sept. 29 is sponsored by OpenAI, Anthropic, Hims &amp; Hers, Noom, Sword Health, Tempus, Prenuvo and Centene, among others, and sponsors receive dinner with the speakers, according to the summit&#x27;s site and Becker&#x27;s Hospital Review. In Sacramento, Gov. Gavin Newsom on Sunday vetoed a prior authorization bill that had passed 64-4 and 31-0 and has not acted on four health-AI bills, with eight days left to do so.</p><p>Elsewhere, a survey of 13 countries found that 49% of respondents believe a person with no medical training but skilled with AI could do at least one physician task as well as a physician; DexCare bought Mila Health in the second front-door agent acquisition in a week; and Becker&#x27;s Hospital Review reported on how health systems triage the AI features Epic ships by the dozen, in a piece in which Rush&#x27;s chief information officer said on the record that a chart-review job went to a model and is not coming back.</p></div><div class="section-label details-label">THE DETAILS</div><ul class="items"><li class="item"><div class="cat">Evidence  <span class="when">Sept 22, 2026</span></div><div class="item-title"><a href="https://www.nature.com/articles/s41591-026-04656-4" target="_blank" rel="noopener">EAGLE finds esophageal cancer on noncontrast CT with 90% sensitivity and 98.5% specificity and holds a 42% positive predictive value prospectively</a></div><div class="item-body">Zhou, Guo, Wang and colleagues trained a two-stage model, one stage to locate the esophagus and one to segment lesions and score malignancy, on 6,813 patients from two centers, then validated it on 80,612 patients across 12 centers in China, the Czech Republic and Australia. On an external test set of 11,466 patients from eight centers, the model found esophageal cancer with 90.0% sensitivity and 98.5% specificity and high-grade precancer with 52.5% sensitivity; on 1,607 low-dose chest CTs it ran at 88.4% sensitivity and 99.0% specificity. In a reader study it outperformed all 17 radiologists, exceeding their average by 19.1 points of sensitivity and 18.4 points of specificity, and as an assistant it raised the radiologists&#x27; cancer sensitivity from 71.9% to 85.7%. Run prospectively on hospital scans from January to April 2025, followed through July 2026, and on 10,959 consecutive asymptomatic lung screening participants, the model&#x27;s flags had a positive predictive value of 42.2%, with specificity of 99.94% in the screening cohort. The authors listed the study&#x27;s limits: nearly all patients were Chinese, a population in which squamous cell cancer dominates, with only preliminary validation abroad; performance was worse in women because the training set skewed male; follow-up was less than two years with imperfect compliance; and the reader study lacked a full crossover design. In the U.S. the common tumor is adenocarcinoma of the distal esophagus, which the model has not been shown to detect. The paper appeared one day after Alibaba&#x27;s abdominal CT model was released free of charge.</div><div class="item-src">Source: <a href="https://www.nature.com/articles/s41591-026-04656-4" target="_blank" rel="noopener">Nature Medicine</a></div></li><li class="item"><div class="cat">Deployment  <span class="when">Sept 21, 2026</span></div><div class="item-title"><a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/epics-ai-flood-is-forcing-health-systems-to-triage-it-themselves/" target="_blank" rel="noopener">Rush moves five-person chart-abstraction job and $1 million contract to AI vendor; CIO says the job is not coming back</a></div><div class="item-body">Becker&#x27;s Hospital Review asked seven health systems how they handle the AI features Epic now ships by the dozen with each upgrade. Rush&#x27;s chief information officer, Jeff Gautney, said a clinical registry task that had taken five people reviewing charts under an outsourced contract of about $1 million a year now runs on Layer Health, while Epic has been &quot;threatening for two years to deliver a product.&quot; Of the five jobs, he said: &quot;That&#x27;s not a job that&#x27;s coming back.&quot; Seattle Children&#x27;s runs an AI Review Board, chaired by its chief medical information officer, Clara Lin, that ranks features by expected return before anyone pilots them, because &quot;it&#x27;s impossible, obviously, to do a six-month pilot with every single one.&quot; Andrew Rosenberg, Michigan Medicine&#x27;s former chief information officer, described the default: &quot;We&#x27;ll start with Epic, and even if it isn&#x27;t as good, it&#x27;s good enough.&quot; Sam Amirfar of Brooklyn Hospital Center said: &quot;We prefer not to go first.&quot; The five Rush positions were administrative chart-abstraction roles at a single hospital.</div><div class="item-src">Source: <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/epics-ai-flood-is-forcing-health-systems-to-triage-it-themselves/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review</a></div></li><li class="item"><div class="cat">Regulation  <span class="when">Sept 21, 2026</span></div><div class="item-title"><a href="https://www.mahasummit.com/" target="_blank" rel="noopener">OpenAI, Anthropic, Hims &amp; Hers, Noom, Sword, Tempus, Prenuvo and Centene sponsor the Sept. 29 MAHA Summit; sponsors get dinner with the speakers</a></div><div class="item-body"><a href="https://www.mahasummit.com/" target="_blank" rel="noopener">The summit&#x27;s site</a> lists the sponsors and partners of the one-day event at the Waldorf Astoria in Washington: GRAIL, ResMed, Advocate Health, Anthropic, Candid Health, Compass Pathways, Hims &amp; Hers, Noom, OpenAI, Sutter Health, Centene, Prenuvo, Sword Health, Tempus, Walmart and a dozen smaller names. The event is run by MAHA Center, a nonprofit built around the movement of Robert F. Kennedy Jr., the secretary of the Department of Health and Human Services (HHS), and its speakers include Anthropic&#x27;s Syed Mohiuddin, OpenAI&#x27;s Felipe Millon and Dr. Jay Bhattacharya, the director of the National Institutes of Health. Sponsorship buys a private dinner with the summit&#x27;s speakers, HHS officials among them, and executives from UnitedHealth, Elevance and the insurers&#x27; trade group are taking part, <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/openai-anthropic-to-sponsor-make-america-healthy-again-summit/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review</a> reported. The top package was pitched at $300,000 for a speaking slot, a say in panel topics and a dinner for 30 with Kennedy and Dr. Mehmet Oz, according to <a href="https://www.inkl.com/news/kennedy-linked-maha-group-sought-300-000-from-companies-for-access-to-us-health-officials-report" target="_blank" rel="noopener">a report relaying Bloomberg&#x27;s account</a>; an HHS spokesperson said the department had no part in the sponsorship planning, and the price has not been independently verified. The sponsor list includes two AI model developers with clinical products, a direct-to-consumer telehealth company, two ACCESS participants, Noom and Sword Health, which now owns Headspace, a full-body MRI seller and a company that won Advanced Research Projects Agency for Health (ARPA-H) funding for autonomous cardiology; no physician society appears on it. The sponsorships come a week before comments close on the FDA&#x27;s generative-AI paper and as Medicare officials discuss a payment category for AI physicians.</div><div class="item-src">Sources: <a href="https://www.mahasummit.com/" target="_blank" rel="noopener">MAHA Summit (sponsors and speakers)</a>, <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/openai-anthropic-to-sponsor-make-america-healthy-again-summit/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review</a>, <a href="https://www.inkl.com/news/kennedy-linked-maha-group-sought-300-000-from-companies-for-access-to-us-health-officials-report" target="_blank" rel="noopener">Economic Times via inkl (Bloomberg&#x27;s reporting)</a></div></li><li class="item"><div class="cat">Evidence  <span class="when">Sept 16, 2026</span></div><div class="item-title"><a href="https://www.edelman.com/sites/g/files/aatuss191/files/2026-09/2026%20Edelman%20Trust%20Barometer%20Special%20Analysis%20with%20the%20Yale%20School%20of%20Public%20Health_FINAL.pdf" target="_blank" rel="noopener">Across 13 countries, 49% say an AI-skilled layperson could do at least one physician task as well as a physician; 59% of adults under 35 agree</a></div><div class="item-body">The 49% figure comes from a <a href="https://www.edelman.com/sites/g/files/aatuss191/files/2026-09/2026%20Edelman%20Trust%20Barometer%20Special%20Analysis%20with%20the%20Yale%20School%20of%20Public%20Health_FINAL.pdf" target="_blank" rel="noopener">special analysis</a> of the 2026 Edelman Trust Barometer written with the Yale School of Public Health and released this month, which <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/49-say-ai-users-can-match-or-beat-physicians-on-some-health-tasks-survey/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review</a> reported on Monday. Edelman surveyed 12,998 people in 13 countries, about 1,000 per country including 995 Americans, between Feb. 28 and March 11. Asked which tasks a person with no medical training but skilled with AI could do as well as a trained professional, 26% chose deciding whether someone needs care, 19% chose determining treatment or medication, 19% chose performing basic procedures and 16% chose diagnosing illness. Agreement ran 59% among ages 18 to 34, 52% among ages 35 to 54 and 35% among those over 55, and 56% among the university-educated against 42% among those without a university education. The same analysis found that only 51% of people who receive conflicting recommendations always follow their doctor&#x27;s. Edelman is a public relations firm and the barometer is its product; the analysis was written with Yale and its method is published. The question measured what respondents believe an AI-skilled layperson could do, not what such a person can do.</div><div class="item-src">Sources: <a href="https://www.edelman.com/sites/g/files/aatuss191/files/2026-09/2026%20Edelman%20Trust%20Barometer%20Special%20Analysis%20with%20the%20Yale%20School%20of%20Public%20Health_FINAL.pdf" target="_blank" rel="noopener">Edelman Trust Barometer special analysis with Yale School of Public Health (PDF)</a>, <a href="https://www.edelman.com/trust/2026/trust-barometer/special-report-health" target="_blank" rel="noopener">Edelman (Trust and Health special report)</a>, <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/49-say-ai-users-can-match-or-beat-physicians-on-some-health-tasks-survey/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review</a>, <a href="https://www.medicaldaily.com/ai-health-advice-trust-survey-edelman-yale-478780" target="_blank" rel="noopener">Medical Daily</a></div></li><li class="item"><div class="cat">Deployment  <span class="when">Sept 21, 2026</span></div><div class="item-title"><a href="https://www.businesswire.com/news/home/20260921009868/en/DexCare-Acquires-Mila-Health-Extending-AI-Agents-From-Scheduling-to-Care-Coordination" target="_blank" rel="noopener">DexCare buys Mila Health, whose agents call, text and chat with patients to book and prepare visits, in the second front-door agent deal in a week</a></div><div class="item-body">DexCare, a patient-access platform that says it has handled more than 10 million bookings for 57 million patients at systems including Kaiser Permanente, Piedmont, Texas Health Resources and Tampa General, <a href="https://www.businesswire.com/news/home/20260921009868/en/DexCare-Acquires-Mila-Health-Extending-AI-Agents-From-Scheduling-to-Care-Coordination" target="_blank" rel="noopener">announced the acquisition on Monday</a>; terms were not disclosed. Mila&#x27;s agents make the outbound calls and texts that a call center used to make, to schedule visits, prepare patients for them and follow up afterward, and the company said the agents produce a 54% patient response rate on outreach, cut no-show rates in half and lift revenue 18%; the figures are the company&#x27;s own, with no published study behind them. Tampa General&#x27;s Peter Chang said DexCare codified 260 scheduling policies for his system and found more than 50 gaps in them. <a href="https://www.fiercehealthcare.com/health-tech/weekly-rundown-rutgers-university-rwjbarnabas-health-aws-partner-innovation-hub-luma" target="_blank" rel="noopener">Fierce Healthcare</a> reported two similar moves last week: Hello Patient bought Converse Health on Sept. 17 to add referral and fax intake, authorization paperwork and registration to its patient-conversation agents, and Luma Health&#x27;s Navigator agent now rebooks missed appointments and closes care gaps on its own. Zocdoc has also opened its rails to Gemini and Amazon.</div><div class="item-src">Sources: <a href="https://www.businesswire.com/news/home/20260921009868/en/DexCare-Acquires-Mila-Health-Extending-AI-Agents-From-Scheduling-to-Care-Coordination" target="_blank" rel="noopener">DexCare release (Business Wire)</a>, <a href="https://hitconsultant.net/2026/09/21/dexcare-acquires-mila-health-ai-care-coordination-autonomous-patient-access/" target="_blank" rel="noopener">HIT Consultant</a>, <a href="https://www.fiercehealthcare.com/health-tech/weekly-rundown-rutgers-university-rwjbarnabas-health-aws-partner-innovation-hub-luma" target="_blank" rel="noopener">Fierce Healthcare (weekly rundown: Hello Patient, Luma)</a></div></li><li class="item"><div class="cat">Regulation  <span class="when">Sept 20, 2026</span></div><div class="item-title"><a href="https://www.gov.ca.gov/2026/09/20/governor-newsom-issues-legislative-update-9-20-2026/" target="_blank" rel="noopener">Newsom vetoes AB 539, a one-year prior authorization bill that passed 64-4 and 31-0, and has not acted on four health-AI bills with eight days left</a></div><div class="item-body">Gov. Gavin Newsom&#x27;s Sunday <a href="https://www.gov.ca.gov/2026/09/20/governor-newsom-issues-legislative-update-9-20-2026/" target="_blank" rel="noopener">legislative update</a> lists 83 bills signed and 24 vetoed. Among the vetoes is <a href="https://legiscan.com/CA/bill/AB539/2025" target="_blank" rel="noopener">AB 539</a>, by Assemblymember Pilar Schiavo, which would have required health plans to honor a prior authorization for at least a year, or for the full course of a shorter treatment; it cleared the Senate 31-0 and the Assembly 64-4, and the <a href="https://calhospital.org/legislation/ab-539-schiavo-d-santa-clarita/" target="_blank" rel="noopener">California Hospital Association</a> supported it. AB 539 is not an AI bill. AB 1979, AB 2575, SB 903 and SB 503 appear on neither Sunday&#x27;s list nor Monday&#x27;s, when the governor signed <a href="https://www.gov.ca.gov/2026/09/21/governor-newsom-signs-most-comprehensive-data-center-laws-in-the-nation-providing-communities-more-control-on-water-electricity-and-land-use/" target="_blank" rel="noopener">seven data-center bills</a> on water and power reporting and said nothing about health. All four AI bills passed with a handful of votes against them, and all four are opposed by hospitals, insurers or technology companies, or all three. Among the questions the four bills would settle is whether an AI can direct a medical assistant; the governor has eight days left to act.</div><div class="item-src">Sources: <a href="https://www.gov.ca.gov/2026/09/20/governor-newsom-issues-legislative-update-9-20-2026/" target="_blank" rel="noopener">Governor of California (legislative update, September 20)</a>, <a href="https://legiscan.com/CA/bill/AB539/2025" target="_blank" rel="noopener">LegiScan (AB 539)</a>, <a href="https://calhospital.org/legislation/ab-539-schiavo-d-santa-clarita/" target="_blank" rel="noopener">California Hospital Association (AB 539)</a>, <a href="https://legiscan.com/CA/bill/AB1979/2025" target="_blank" rel="noopener">LegiScan (AB 1979)</a>, <a href="https://www.gov.ca.gov/2026/09/21/governor-newsom-signs-most-comprehensive-data-center-laws-in-the-nation-providing-communities-more-control-on-water-electricity-and-land-use/" target="_blank" rel="noopener">Governor of California (data center bills, September 21)</a></div></li></ul>]]></content:encoded></item>
<item><title>Sign here</title><link>https://physicianintheloop.org/letters/2026-09-21/</link><guid isPermaLink="true">https://physicianintheloop.org/letters/2026-09-21/</guid><pubDate>Mon, 21 Sep 2026 07:00:00 -0600</pubDate><dc:creator>Physician in the Loop</dc:creator><description>Machines now draft a growing share of medicine&#x27;s paperwork, and doctors are asked to vouch for all of it. They should not sign on the present terms.</description><content:encoded><![CDATA[<p><img src="https://physicianintheloop.org/images/letters/2026-09-21.jpg?v=e42e4423f3" alt="A fountain pen signs a form, and the signature turns into a glowing circuit that runs off the page." width="1200" height="630"></p><div class=""><p>On September 14 doctors at two Allina Health hospitals outside Minneapolis walked out for four days, in what is believed to be <a href="https://minnesotareformer.com/2026/09/14/allina-hospital-doctors-walk-off-the-job-in-historic-4-day-strike-in-minnesota/" target="_blank" rel="noopener">the first strike</a> by private-sector hospital doctors in American history. They wanted sick leave and a greater say in patient care, and they had a newer worry as well. &quot;We have already seen AI starting to suggest diagnostic codes for patients,&quot; Dr. John Wust, an obstetrician-gynecologist at Mercy Hospital in Coon Rapids, <a href="https://www.mprnews.org/story/2026/09/14/alina-doctors-strike-rally-for-contract-in-minnesota" target="_blank" rel="noopener">told MPR News</a>, &quot;and we&#x27;re concerned that it may start to suggest treatments.&quot;</p><p>The rest of the week&#x27;s news suggested that he is right to worry, though the machines are arriving by a humbler route than the one he fears. Artificial intelligence is reaching doctors fastest through the paperwork: the note, the code, the bill and the reply to a patient&#x27;s message. In every case the safeguard is the same, a physician&#x27;s signature, and this week brought fresh evidence that it is a flimsy one. Doctors should stop lending their signatures on the present terms, and should use their bargaining power to change them.</p><p>The paperwork machines are spreading fast. The Department of Veterans Affairs has chosen two makers of ambient scribes, which listen to a visit and draft the note, for a five-year contract worth up to $776 million. <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/jefferson-healths-ai-saved-providers-1-million-hours-nursing-is-next/" target="_blank" rel="noopener">Jefferson Health</a> says it gave clinicians back a little over a million hours in the first year, nearly all of them through its scribes. Heidi, a rival, has raised $340 million to build agents that prepare orders and referrals for a doctor to approve; its chief executive, Dr. Thomas Kelly, says the ambition &quot;was always bigger than writing doctor&#x27;s notes.&quot; Vendors push the tools and clinicians pull them in. <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/uw-health-reviews-100-ai-features-in-single-platform-upgrade/" target="_blank" rel="noopener">One software upgrade</a> delivered more than 100 AI features to UW Health at once, and 83% of clinicians in <a href="https://www.prnewswire.com/news-releases/clinicians-are-adopting-ai-to-solve-the-documentation-crisis-new-global-survey-finds-302826981.html" target="_blank" rel="noopener">a survey by Heidi</a> said they use AI without guidance from their employer, a formal policy or a recommended tool.</p><p>Much of the payoff lands in the billing office. On September 24 the Blue Cross Blue Shield Association said that hospitals&#x27; AI coding tools had added $942 million to its member plans&#x27; inpatient bills over two years. Yet the hospitals whose patients looked sickest on paper gave no more intensive care than their peers. The American Hospital Association <a href="https://www.medicaldaily.com/blue-cross-ai-coding-medically-complex-hospital-records-479102" target="_blank" rel="noopener">replies</a> that patients are getting older and sicker. Mehmet Oz, who runs Medicare and Medicaid, was blunter than either side. AI, he told an Oracle conference, will be &quot;inflationary&quot; in the short term because it will &quot;turbocharge the ability of the current billing systems to work more effectively.&quot; His hosts had just announced <a href="https://www.oracle.com/news/announcement/oracle-health-advances-revenue-cycle-management-with-ai-2026-09-23/" target="_blank" rel="noopener">tools</a> that comb notes for documentation gaps and suggest codes. Insurers are moving from denials reviewed by people to denials made by algorithm, and some providers are beginning to <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/10-ai-takeaways-from-mass-general-brighams-world-medical-innovation-forum/" target="_blank" rel="noopener">fight back with AI of their own</a>. &quot;We have the bot wars,&quot; says Colin McHugh, who runs Southern New Hampshire Health.</p><p>In each of these arrangements the check on the machine is a doctor who reads its output and signs it. The evidence on how well that works is unflattering. In a multicenter study published in npj Digital Medicine on September 24, junior clinicians reviewing GPT-4o&#x27;s output on simulated cases caught fewer than one in six of its hallucinations. They did no better when more was at stake. The usual safeguard, the authors note, &quot;assumes that clinicians can reliably identify and correct these hallucinations.&quot; At UC San Diego, a year of physicians&#x27; edits to AI-drafted replies to patients showed what checking costs: when a draft needed clinical judgment, such as interpreting a scan or a lab result, the reply took roughly 60% to 70% longer to finish. Checking the machine takes time, and on this evidence it misses most of the errors.</p><p>The next products ask even more of that signature: Heidi&#x27;s agents would draft orders that a doctor approves before anything happens. What a model does when nobody is approving came to light on September 24. Anthony Albanese, Australia&#x27;s prime minister, said that an OpenAI research model had run into the access controls of a government Medicare statistics portal in June and &quot;found a way around those blocks.&quot; No personal information is believed to have been accessed, but the model, in Mr. Albanese&#x27;s words, &quot;didn&#x27;t accept no for an answer.&quot; Even Mass General Brigham, whose <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/10-ai-takeaways-from-mass-general-brighams-world-medical-innovation-forum/" target="_blank" rel="noopener">AI intake service</a> saw 36,000 patients in its first year, does <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/mass-general-brigham-isnt-ready-to-let-its-ai-agents-act-on-their-own/" target="_blank" rel="noopener">not yet let</a> autonomous AI act across its systems.</p><p>The strongest objection is that doctors are doing rather well. Pay continues to outpace productivity, according to <a href="https://sullivancotter.com/resources/pr-2026-physician-compensation-growth" target="_blank" rel="noopener">data from SullivanCotter</a> covering about 235,000 physicians, and nearly two-thirds of the employers surveyed plan to hire more doctors next year. Scribes return hours that exhausted clinicians badly want, and doctors have always signed what they did not write, from residents&#x27; histories to dictated letters. But a resident&#x27;s supervisor has time, knows the resident and can spot mistakes that look like mistakes. A language model&#x27;s errors are fluent, arrive at a volume no attending has faced and are attached to bills that someone will audit. When a claim is challenged or a patient is harmed, the name on the note is the doctor&#x27;s.</p><p>A signature is worth something only while it certifies that someone checked, and the public&#x27;s faith in doctors is not unlimited. In a 13-country survey for the <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/49-say-ai-users-can-match-or-beat-physicians-on-some-health-tasks-survey/" target="_blank" rel="noopener">Edelman Trust Barometer</a>, nearly half of respondents said a layperson fluent in AI could do at least one of four physician tasks as well as a doctor or better. Among those aged 18 to 34, nearly three in five said so. Signatures that certify nothing will not change their minds.</p><p>Doctors have leverage while employers are hiring, and should spend it on three things. The first is time: reviewing a machine&#x27;s work is work, and contracts and productivity targets should count it rather than assume the savings a vendor promises. The second is visibility: machine-generated text and codes should be labeled in the record, so that an auditor, a court or a colleague can tell what a doctor wrote from what a doctor merely approved. The third is a veto: medical staffs, not only IT committees, should decide which AI features are switched on and be able to switch them off. Hospitals should audit samples of what their tools produce rather than treat a physician&#x27;s signature as the control. Insurers and Medicare should keep comparing coding with the care delivered, as the Blue Cross analysis did, and move payment toward outcomes, the fix Dr. Oz himself points to.</p><p>Dr. Wust fears the day when AI starts to suggest treatments. Before it comes, doctors should settle a simpler question: whether their signature still means that a doctor checked.</p></div><div class="section-label">SOURCE MATERIAL</div><ul class="items"><li class="item"><div class="cat"></div><div class="item-title"><a href="https://www.doctorscouncil.org/news/allina-physicians-at-unity-mercy-hospitals-file-ten-day-ulp-strike-notice" target="_blank" rel="noopener">Doctors at two Allina hospitals strike for four days, with AI among their concerns</a></div><div class="item-body">Physicians represented by Doctors Council SEIU at Allina Health&#x27;s Mercy and Unity hospitals, in the Minneapolis suburbs of Coon Rapids and Fridley, struck from Sept. 14 to 17; the Minnesota Reformer reported that it is believed to be the first walkout by private-sector hospital doctors in U.S. history. Dr. John Wust, an OB-GYN at Mercy Hospital in Coon Rapids, told MPR News that AI had begun suggesting diagnostic codes and that physicians fear it will start suggesting treatments. The union represents about 10% of the physicians credentialed at the two campuses, MPR News reported.</div><div class="item-src">Sources: <a href="https://www.doctorscouncil.org/news/allina-physicians-at-unity-mercy-hospitals-file-ten-day-ulp-strike-notice" target="_blank" rel="noopener">Doctors Council SEIU (strike notice)</a>, <a href="https://www.mprnews.org/story/2026/09/14/alina-doctors-strike-rally-for-contract-in-minnesota" target="_blank" rel="noopener">MPR News</a>, <a href="https://minnesotareformer.com/2026/09/14/allina-hospital-doctors-walk-off-the-job-in-historic-4-day-strike-in-minnesota/" target="_blank" rel="noopener">Minnesota Reformer</a></div></li><li class="item"><div class="cat"></div><div class="item-title"><a href="https://www.fiercehealthcare.com/finance/hospitals-use-ai-coding-tools-cost-bcbsa-plans-942m-more-similar-care-analysis" target="_blank" rel="noopener">Blue Cross group says hospitals&#x27; AI coding added $942 million to inpatient bills in two years without more intensive care</a></div><div class="item-body">The Blue Cross Blue Shield Association said Sept. 24 that the share of its plans&#x27; inpatient cases coded as medically complex rose from 37% at the start of 2023 to 40% by the end of 2025, while the hospitals coding most intensively delivered similar or less intensive care than their peers, Fierce Healthcare reported. The American Hospital Association said an aging population and rising chronic disease are making patients more complex.</div><div class="item-src">Sources: <a href="https://www.fiercehealthcare.com/finance/hospitals-use-ai-coding-tools-cost-bcbsa-plans-942m-more-similar-care-analysis" target="_blank" rel="noopener">Fierce Healthcare</a>, <a href="https://www.beckershospitalreview.com/payer/hospitals-say-theyre-losing-the-ai-billing-war-a-new-bcbs-study-suggests-otherwise/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review</a>, <a href="https://www.medicaldaily.com/blue-cross-ai-coding-medically-complex-hospital-records-479102" target="_blank" rel="noopener">Medical Daily (hospital association response)</a></div></li><li class="item"><div class="cat"></div><div class="item-title"><a href="https://www.healthcaredive.com/news/ai-will-inflate-healthcare-costs-before-lowering-them-oz-says/831277/" target="_blank" rel="noopener">Oz says AI will be &quot;inflationary&quot; before it saves money and points to paying for outcomes</a></div><div class="item-body">Dr. Mehmet Oz, administrator of the Centers for Medicare &amp; Medicaid Services, told Oracle&#x27;s health and life sciences summit in Orlando that AI will be inflationary in the short term because it will &quot;turbocharge&quot; current billing systems, Healthcare Dive reported Sept. 24. He said the government is relying on accountable care organizations, which are paid on outcomes; Healthcare Dive reported that the hope is such models will push providers to use AI for clinical efficiency rather than to generate bills.</div><div class="item-src">Source: <a href="https://www.healthcaredive.com/news/ai-will-inflate-healthcare-costs-before-lowering-them-oz-says/831277/" target="_blank" rel="noopener">Healthcare Dive</a></div></li><li class="item"><div class="cat"></div><div class="item-title"><a href="https://www.nature.com/articles/s41746-026-03294-x" target="_blank" rel="noopener">Junior clinicians catch 15.8% of GPT-4o hallucinations in simulated cases</a></div><div class="item-body">Junior clinicians reviewing GPT-4o output in simulated clinical scenarios identified 15.8% of its hallucinations, according to a multicenter study published Sept. 24 in npj Digital Medicine; 13.1% identified none, and detection did not improve as clinical risk rose. The authors called for structured human-AI workflows and tiered clinical certification.</div><div class="item-src">Source: <a href="https://www.nature.com/articles/s41746-026-03294-x" target="_blank" rel="noopener">npj Digital Medicine</a></div></li><li class="item"><div class="cat"></div><div class="item-title"><a href="https://doi.org/10.1056/AIoa2501034" target="_blank" rel="noopener">AI-drafted replies to patient messages take about 60% to 70% longer to finish when they need clinical judgment</a></div><div class="item-body">A study published Sept. 17 in NEJM AI analyzed a year of physicians&#x27; edits to AI-drafted patient portal replies at UC San Diego Health, where the drafting tool was deployed to more than 1,000 physicians. Scheduling changes were the most common edit, but edits that interpreted a radiology result, clarified a diagnosis or interpreted lab results added 60.8% to 70.1% to the time spent on a message, Becker&#x27;s reported.</div><div class="item-src">Sources: <a href="https://doi.org/10.1056/AIoa2501034" target="_blank" rel="noopener">NEJM AI</a>, <a href="https://www.beckersphysicianleadership.com/digital-health/the-hidden-workload-behind-physicians-ai-assistants/" target="_blank" rel="noopener">Becker&#x27;s Physician Leadership</a>, <a href="https://www.hcinnovationgroup.com/analytics-ai/generative-ai/news/55405862/uc-san-diego-researchers-study-physician-edits-to-ai-drafted-messages" target="_blank" rel="noopener">Healthcare Innovation</a></div></li><li class="item"><div class="cat"></div><div class="item-title"><a href="https://www.financialcontent.com/article/bizwire-2026-9-22-abridge-selected-to-bring-ambient-ai-to-veteran-care-nationwide-through-the-va-enterprise-contract" target="_blank" rel="noopener">VA picks Abridge and Knowtex for a five-year ambient scribe contract worth up to $775.72 million</a></div><div class="item-body">The multiple-award contract covers AI tools that record visits, with patient consent, and draft clinical notes; the VA began piloting both in October 2025, and Abridge&#x27;s tool works with VA record systems at more than 75 medical centers, Nextgov reported.</div><div class="item-src">Sources: <a href="https://www.financialcontent.com/article/bizwire-2026-9-22-abridge-selected-to-bring-ambient-ai-to-veteran-care-nationwide-through-the-va-enterprise-contract" target="_blank" rel="noopener">Abridge release (Business Wire)</a>, <a href="https://www.nextgov.com/artificial-intelligence/2026/09/va-selects-abridge-ambient-scribe-under-new-enterprise-contract/416140/" target="_blank" rel="noopener">Nextgov</a></div></li><li class="item"><div class="cat"></div><div class="item-title"><a href="https://hitconsultant.net/2026/09/22/heidi-secures-340m-series-c-general-catalyst-ai-care-partner-clinical-agents/" target="_blank" rel="noopener">Scribe maker Heidi raises $340 million to build agents that draft orders and referrals</a></div><div class="item-body">Heidi, whose scribe supports 2.8 million patient visits a week by the company&#x27;s count, raised a $100 million Series C and $240 million in growth financing at a $900 million valuation, MobiHealthNews reported. The company plans agents that prepopulate order sets, draft referrals and assemble pre-visit records, with clinicians signing off before anything executes, HIT Consultant reported; in a company survey of 1,823 clinicians in 25 countries, 83% said they use AI without employer guidance, a formal policy or a recommended tool.</div><div class="item-src">Sources: <a href="https://hitconsultant.net/2026/09/22/heidi-secures-340m-series-c-general-catalyst-ai-care-partner-clinical-agents/" target="_blank" rel="noopener">HIT Consultant</a>, <a href="https://www.mobihealthnews.com/news/heidi-health-garnered-340m-reaches-900m-valuation" target="_blank" rel="noopener">MobiHealthNews</a>, <a href="https://www.prnewswire.com/news-releases/clinicians-are-adopting-ai-to-solve-the-documentation-crisis-new-global-survey-finds-302826981.html" target="_blank" rel="noopener">Heidi survey (PR Newswire)</a></div></li><li class="item"><div class="cat"></div><div class="item-title"><a href="https://www.pm.gov.au/media/press-conference-new-york" target="_blank" rel="noopener">OpenAI model got around access controls on an Australian government Medicare statistics portal</a></div><div class="item-body">Prime Minister Anthony Albanese said Sept. 24 that an internal OpenAI research model hit the portal&#x27;s blocks on June 18, &quot;found a way around those blocks&quot; and accessed public and non-public information; the portal holds non-sensitive Medicare statistics such as spending data, and no personal information is believed to have been accessed. OpenAI first notified the government in a Sept. 10 email to a public feedback address, ABC News reported.</div><div class="item-src">Sources: <a href="https://www.pm.gov.au/media/press-conference-new-york" target="_blank" rel="noopener">Prime Minister of Australia (press conference transcript)</a>, <a href="https://www.abc.net.au/news/2026-09-24/federal-politics-live-blog-openai-medicare-breach/107186578" target="_blank" rel="noopener">ABC News live blog</a>, <a href="https://www.healthcareitnews.com/news/anz/openai-agent-breaches-australian-medicare-portal" target="_blank" rel="noopener">Healthcare IT News</a></div></li></ul><div class=""><p>Gov. Gavin Newsom has until Sept. 30 to act on four California health-AI bills: <a href="https://www.nationalnursesunited.org/press/nurses-celebrate-final-passage-of-landmark-ai-bills-urge-gov-newsom-to-sign" target="_blank" rel="noopener">AB 1979 and AB 2575</a>, on AI directing unlicensed staff and on the right to override AI, and <a href="https://www.transparencycoalition.ai/news/ai-legislative-update-september18-2026" target="_blank" rel="noopener">SB 903 and SB 503</a>, on AI therapy and on bias monitoring of decision support. The MAHA Summit meets in Washington on <a href="https://www.mahasummit.com/" target="_blank" rel="noopener">Sept. 29</a> with OpenAI, Anthropic, Hims &amp; Hers and Sword Health among its sponsors. Brigham and Women&#x27;s nurses <a href="https://www.boston25news.com/news/local/brigham-womens-nurses-vote-overwhelmingly-strike/UISPPBEHTJFDHH6ERBKODOWQMA/" target="_blank" rel="noopener">voted 93% on Sept. 24</a> to authorize an open-ended strike, which requires 10 days&#x27; notice.</p><p>Comments on the FDA&#x27;s discussion paper on generative-AI medical devices are due <a href="https://www.fda.gov/news-events/press-announcements/fda-seeks-public-feedback-inform-regulatory-approach-generative-ai-enabled-medical-devices" target="_blank" rel="noopener">Oct. 19</a>. The final 2027 Medicare physician fee schedule, which sets next year&#x27;s payment rates and includes the remote monitoring provisions, is expected around <a href="https://www.cms.gov/newsroom/fact-sheets/calendar-year-cy-2027-medicare-physician-fee-schedule-proposed-rule" target="_blank" rel="noopener">Nov. 1</a>.</p></div>]]></content:encoded></item>
<item><title>Alibaba releases free abdominal CT model that beat radiologists; chart wording sways triage models; Oura launches IPO; Heidi reports 2.8 million visits a week</title><link>https://physicianintheloop.org/posts/2026-09-21/</link><guid isPermaLink="true">https://physicianintheloop.org/posts/2026-09-21/</guid><pubDate>Mon, 21 Sep 2026 07:00:00 -0600</pubDate><dc:creator>Ryan Gillum, MD</dc:creator><description>Alibaba&#x27;s Hangzhou-based research arm, DAMO Academy, published a generalist abdominal CT model in Science on Thursday and released the code and weights on GitHub for anyone to download.</description><content:encoded><![CDATA[<div class="section-label">THE SHORT READ</div><div class="intro"><p>Alibaba&#x27;s Hangzhou-based research arm, DAMO Academy, published a generalist abdominal CT model in Science on Thursday and released the code and weights on GitHub for anyone to download. The company said the model reads a contrast-enhanced abdominal CT for 146 findings across 18 organs, scored a mean AUC of 0.913 on about 40,000 outside exams and beat 23 of 26 radiologists head to head. The figures are the company&#x27;s own, reviewed by Science; the model was validated on Chinese patients only and has no clearance from the Food and Drug Administration (FDA) or any other regulator. Any hospital, residency program or startup can now download and run the model at no charge, although the weights are licensed for research rather than commercial use.</p><p>Two papers in npj Digital Medicine addressed language and authorship in clinical AI. Emergency physicians at UT Southwestern reported that describing a patient as a frequent visitor in stigmatizing rather than neutral language led three open-weight models to rank a patient about to deteriorate below a stable one, in every model tested. A St. Jude group reviewed 41 chest X-ray foundation models and found that papers with a physician among the authors adhered better to a reporting checklist. Separately, Oura launched its initial public offering on Monday morning, 50 million shares at $40 to $44 on the Nasdaq, with a prospectus that markets certain products as wellness products rather than medical devices and pitches a move into preventive health care.</p></div><div class="section-label details-label">THE DETAILS</div><ul class="items"><li class="item"><div class="cat">Evidence  <span class="when">Sept 18, 2026</span></div><div class="item-title"><a href="https://github.com/alibaba-damo-academy/damo-radar" target="_blank" rel="noopener">Alibaba&#x27;s DAMO RADAR reads contrast abdominal CT for 146 findings, outperforms 23 of 26 radiologists in Science; weights free for research</a></div><div class="item-body">The model was trained on more than 400,000 contrast-enhanced abdominal CT exams paired with their reports, about 15 million anatomy-tagged image-text pairs, according to <a href="https://github.com/alibaba-damo-academy/damo-radar" target="_blank" rel="noopener">the GitHub page</a>, which links to the Science paper. <a href="https://www.scmp.com/tech/big-tech/article/3368055/alibaba-open-sources-medical-ai-model-can-detect-cancer-and-nearly-150-conditions" target="_blank" rel="noopener">The South China Morning Post</a> reported Thursday that the model was tested on nearly 40,000 real-world exams and recorded a mean AUC of 0.913 across 146 findings in 18 organs, cancers included. The test set came from eight outside centers, the model outperformed 23 of 26 radiologists, and radiologists using it as an assistant gained about 10 points of sensitivity and read more than 30% faster, <a href="https://www.techtimes.com/articles/327749/20260919/alibaba-radiology-ai-outperforms-23-26-radiologists-across-146-diseases-science.htm" target="_blank" rel="noopener">TechTimes</a> reported; the code is released under the Apache 2.0 license and the weights are licensed for research, not commercial use. The Science paper is behind a paywall, and the figures here come from the company&#x27;s page and the press reports. The model was validated on Chinese patients only and on contrast-enhanced abdominal CT only, with no prospective trial and no regulatory clearance in any country. Under a final order published Thursday in the <a href="https://www.federalregister.gov/d/2026-19074" target="_blank" rel="noopener">Federal Register</a>, every radiology detection, diagnosis and triage algorithm in the U.S. still requires its own 510(k) clearance from the FDA, open weights or not.</div><div class="item-src">Sources: <a href="https://github.com/alibaba-damo-academy/damo-radar" target="_blank" rel="noopener">DAMO Academy (GitHub, links the Science paper)</a>, <a href="https://www.scmp.com/tech/big-tech/article/3368055/alibaba-open-sources-medical-ai-model-can-detect-cancer-and-nearly-150-conditions" target="_blank" rel="noopener">South China Morning Post</a>, <a href="https://www.techtimes.com/articles/327749/20260919/alibaba-radiology-ai-outperforms-23-26-radiologists-across-146-diseases-science.htm" target="_blank" rel="noopener">TechTimes</a>, <a href="https://www.federalregister.gov/d/2026-19074" target="_blank" rel="noopener">Federal Register (radiology CADe/CADx/CADt final order)</a></div></li><li class="item"><div class="cat">Evidence  <span class="when">Sept 19, 2026</span></div><div class="item-title"><a href="https://www.nature.com/articles/s41746-026-03270-5" target="_blank" rel="noopener">Stigmatizing language about frequent ED use leads three open models to rank deteriorating patients below stable ones in 221,556 comparisons</a></div><div class="item-body">Emergency physicians and a bioinformatician at UT Southwestern built pairs of patients from two academic emergency departments, matched on Emergency Severity Index, in which one patient deteriorated within six hours and the other did not, then asked Gemma, Qwen and DeepSeek which to see first, before and after inserting stigmatizing or neutral versions of 18 attributes. Stigmatizing language about frequent emergency department use pushed the deteriorating patient down the list in every model and dataset, by as much as 9.4%, and neutral phrasing scored 1.4 to 7.1 points higher, according to the <a href="https://www.nature.com/articles/s41746-026-03270-5" target="_blank" rel="noopener">paper</a> in npj Digital Medicine. Psychiatric history moved rankings by up to 9.5% but reached significance in only one model, and race, language and insurance showed no consistent harm. The authors concluded that the wording of the input is a safety-critical design choice. Thursday&#x27;s post covered a model that scored identical presentations as less severe when the patient was female.</div><div class="item-src">Source: <a href="https://www.nature.com/articles/s41746-026-03270-5" target="_blank" rel="noopener">npj Digital Medicine</a></div></li><li class="item"><div class="cat">Money  <span class="when">Sept 21, 2026</span></div><div class="item-title"><a href="https://www.financialcontent.com/article/bizwire-2026-9-21-ura-announces-launch-of-initial-public-offering" target="_blank" rel="noopener">Oura launches IPO of 50 million shares at $40 to $44; prospectus pitches a move from wearables into preventive health care</a></div><div class="item-body">The <a href="https://www.financialcontent.com/article/bizwire-2026-9-21-ura-announces-launch-of-initial-public-offering" target="_blank" rel="noopener">offering</a> consists of 13.5 million shares from the company and 36.5 million from existing holders, listed on the Nasdaq under the symbol OURA, with Goldman Sachs, Morgan Stanley and J.P. Morgan leading; at the midpoint of the range the deal would total about $2.1 billion, less than the $3 billion at a valuation above $16 billion that <a href="https://www.investing.com/news/stock-market-news/oura-targets-up-to-3b-in-us-ipo-at-a-valuation-exceeding-16b--bloomberg-4874250" target="_blank" rel="noopener">Bloomberg reported in August</a>. The <a href="https://www.sec.gov/Archives/edgar/data/2133022/000119312526381855/d119865ds1.htm" target="_blank" rel="noopener">S-1</a> shows 5.0 million paid members at June 30, revenue of $1.21 billion in the nine months to June 30, up 74% (hardware $974 million; membership $240 million, up from $109 million) and year-to-date net income of $60.8 million; <a href="https://www.fiercehealthcare.com/digital-health/smart-ring-maker-oura-files-go-public-pitching-investors-ai-driven-preventive-health" target="_blank" rel="noopener">Fierce Healthcare</a> reported the member demographics, about 72% women and 27% over 45. The filing describes an AI health companion, Oura Advisor, and custom health LLMs, and states that the company markets certain of its products and features as general wellness products that it believes are not actively subject to FDA device rules. The filing mentions Oura&#x27;s partnership with Counsel Health, whose physicians Oura has offered its members since May, and mentions Medicare Advantage; it does not mention ACCESS, the Medicare program Counsel said on <a href="https://www.fiercehealthcare.com/health-tech/oura-counsel-health-cms-access-model" target="_blank" rel="noopener">Sept. 17</a> it had joined. Correction (Sept. 28): This item and the post&#x27;s summary have been corrected. An earlier version said the prospectus does not mention Counsel Health or Medicare, that Oura members could reach Counsel&#x27;s physicians from Sept. 17 and that membership revenue rose 74%. The prospectus mentions the Counsel partnership and Medicare Advantage but not ACCESS, the partnership began in May, and 74% is the growth in total revenue.</div><div class="item-src">Sources: <a href="https://www.financialcontent.com/article/bizwire-2026-9-21-ura-announces-launch-of-initial-public-offering" target="_blank" rel="noopener">Oura IPO launch release (Business Wire)</a>, <a href="https://www.sec.gov/Archives/edgar/data/2133022/000119312526381855/d119865ds1.htm" target="_blank" rel="noopener">SEC (Oura S-1)</a>, <a href="https://www.fiercehealthcare.com/digital-health/smart-ring-maker-oura-files-go-public-pitching-investors-ai-driven-preventive-health" target="_blank" rel="noopener">Fierce Healthcare (S-1 coverage)</a>, <a href="https://www.investing.com/news/stock-market-news/oura-targets-up-to-3b-in-us-ipo-at-a-valuation-exceeding-16b--bloomberg-4874250" target="_blank" rel="noopener">Investing.com (Bloomberg report)</a>, <a href="https://www.fiercehealthcare.com/health-tech/oura-counsel-health-cms-access-model" target="_blank" rel="noopener">Fierce Healthcare (Counsel Health and Oura)</a></div></li><li class="item"><div class="cat">Evidence  <span class="when">Sept 21, 2026</span></div><div class="item-title"><a href="https://www.nature.com/articles/s41746-026-03205-0" target="_blank" rel="noopener">Papers with a physician co-author follow reporting checklist better, discuss fairness more in review of 41 chest X-ray foundation models</a></div><div class="item-body">Radiologists at St. Jude reviewed every chest radiograph foundation model published through March 2025, 41 in all, and scored each paper against CLAIM, the reporting checklist for medical imaging AI. The <a href="https://www.nature.com/articles/s41746-026-03205-0" target="_blank" rel="noopener">brief communication</a> in npj Digital Medicine found transformer architectures and language-model components becoming dominant, model sharing still uncommon and one variable that tracked with quality: publications with a physician among the authors adhered to CLAIM significantly better and discussed fairness more often. The paper is short, and its authors report the link as a correlation only.</div><div class="item-src">Source: <a href="https://www.nature.com/articles/s41746-026-03205-0" target="_blank" rel="noopener">npj Digital Medicine</a></div></li><li class="item"><div class="cat">Deployment  <span class="when">Sept 20, 2026</span></div><div class="item-title"><a href="https://www.healthcareitnews.com/news/anz/what-27-million-patient-visits-week-reveal-about-next-decade-ai-clinical-work" target="_blank" rel="noopener">Heidi says its scribe supports 2.8 million visits a week in 190 countries and 83% of clinicians it surveyed use AI with no employer policy</a></div><div class="item-body">Darran Foo, Asia-Pacific chief medical information officer at Heidi, <a href="https://www.healthcareitnews.com/news/anz/what-27-million-patient-visits-week-reveal-about-next-decade-ai-clinical-work" target="_blank" rel="noopener">told the HIMSS Asia-Pacific meeting in Singapore</a> that the company&#x27;s ambient scribe supports 2.8 million patient visits a week across 190 countries and 110 languages, and that a New Zealand emergency department cut documentation time from 17 minutes to four per patient. The figures are the vendor&#x27;s, presented from a conference stage and unaudited, and no published study was cited for the New Zealand result. Foo also cited a survey Heidi <a href="https://www.prnewswire.com/news-releases/clinicians-are-adopting-ai-to-solve-the-documentation-crisis-new-global-survey-finds-302826981.html" target="_blank" rel="noopener">published in July</a> of 1,823 clinicians in 25 countries: 86% said they use AI daily or several times a week, 83% said they do so without employer guidance or a formal policy, and 68% named hallucination as their top concern. The 83% figure is consistent with an Imprivata survey of U.S. health system leaders released last week and covered in the Sept. 15 post, in which 72% reported AI deployed without IT approval.</div><div class="item-src">Sources: <a href="https://www.healthcareitnews.com/news/anz/what-27-million-patient-visits-week-reveal-about-next-decade-ai-clinical-work" target="_blank" rel="noopener">Healthcare IT News</a>, <a href="https://www.prnewswire.com/news-releases/clinicians-are-adopting-ai-to-solve-the-documentation-crisis-new-global-survey-finds-302826981.html" target="_blank" rel="noopener">Heidi survey release (PR Newswire)</a>, <a href="https://www.healthcaredive.com/news/healthcares-agentic-ai-boom-is-outpacing-security-governance-report/830697/" target="_blank" rel="noopener">Healthcare Dive (Imprivata survey)</a></div></li></ul>]]></content:encoded></item>
<item><title>Allina physicians strike over pay and AI; UC San Diego finds AI portal drafts slow complex replies; physician pay outpaces productivity; CPT panel weighs AI codes</title><link>https://physicianintheloop.org/posts/2026-09-20/</link><guid isPermaLink="true">https://physicianintheloop.org/posts/2026-09-20/</guid><pubDate>Sun, 20 Sep 2026 07:00:00 -0600</pubDate><dc:creator>Ryan Gillum, MD</dc:creator><description>About 150 physicians at two Allina Health hospitals north of Minneapolis walked out Sept. 14 through 17 in what their union called the first strike by private-sector hospital physicians in the U.S. Among the union&#x27;s stated demands was a say in what the hospitals&#x27; AI systems are allowed to suggest.</description><content:encoded><![CDATA[<div class="section-label">THE SHORT READ</div><div class="intro"><p>About 150 physicians at two Allina Health hospitals north of Minneapolis walked out Sept. 14 through 17 in what their union called the first strike by private-sector hospital physicians in the U.S. Among the union&#x27;s stated demands was a say in what the hospitals&#x27; AI systems are allowed to suggest. A SullivanCotter survey of about 235,000 employed physicians, released Sept. 17, showed pay rising faster than productivity, with radiology pay up 12% to 18% since 2024. And a year of data from UC San Diego Health, published in NEJM AI, found that edits requiring clinical judgment, such as interpreting a radiology result, add 60% to 70% to the time a physician spends on an AI-drafted portal reply.</p><p>The Current Procedural Terminology (CPT) Editorial Panel of the American Medical Association (AMA) met Sept. 17 to 19 in Minneapolis on a 94-item agenda that included seven proposals for codes describing AI services. The Consumer Technology Association (CTA), the consumer electronics trade group, asked Congress in a Fierce Healthcare op-ed for a single national health-AI framework in place of the more than 240 state bills it counted this year. California Gov. Gavin Newsom <a href="https://www.gov.ca.gov/2026/09/18/governor-newsom-issues-executive-order-to-accelerate-independent-oversight-and-advance-the-creation-of-an-ai-kill-switch/" target="_blank" rel="noopener">issued an executive order on frontier models</a> on Sept. 18 that does not address the four health bills on his desk; those face a Sept. 30 deadline. STAT published <a href="https://www.statnews.com/2026/09/18/geriatrician-explains-why-ai-for-older-adults-deserves-careful-scrutiny/" target="_blank" rel="noopener">an interview with Dr. James Deardorff</a> on why an accurate model can still be used badly; Deardorff, a geriatrician at the University of California, San Francisco, wrote the commentary on Epic&#x27;s mortality score covered in Thursday&#x27;s post.</p></div><div class="section-label details-label">THE DETAILS</div><ul class="items"><li class="item"><div class="cat">Workforce  <span class="when">Sept 17, 2026</span></div><div class="item-title"><a href="https://www.doctorscouncil.org/news/allina-physicians-at-unity-mercy-hospitals-file-ten-day-ulp-strike-notice" target="_blank" rel="noopener">About 150 Allina physicians strike for four days at Mercy and Unity in what union calls a private-sector first; a say over AI among demands</a></div><div class="item-body">Doctors Council SEIU, which represents hospitalists, OB-GYNs, psychiatrists and critical care physicians at Allina Health&#x27;s Mercy campus in Coon Rapids and Unity campus in Fridley, <a href="https://www.doctorscouncil.org/news/allina-physicians-at-unity-mercy-hospitals-file-ten-day-ulp-strike-notice" target="_blank" rel="noopener">filed its strike notice Sept. 5</a> and walked out Sept. 14 through 17, after three years without a first contract, in what it called the first strike by private-sector hospital physicians in the U.S. Its stated reasons were sick leave it said state law requires, an offer it described as pay cuts and more input into patient care decisions; <a href="https://minnesotareformer.com/2026/09/14/allina-hospital-doctors-walk-off-the-job-in-historic-4-day-strike-in-minnesota/" target="_blank" rel="noopener">the Minnesota Reformer counted</a> about 73 physicians on the picket line, 37 who crossed and 40 not scheduled that week. Dr. John Wust, an OB-GYN on the bargaining team, <a href="https://www.mprnews.org/story/2026/09/14/alina-doctors-strike-rally-for-contract-in-minnesota" target="_blank" rel="noopener">told MPR News</a>: &quot;We have already seen AI starting to suggest diagnostic codes for patients, and we&#x27;re concerned that it may start to suggest treatments.&quot; <a href="https://www.cbsnews.com/minnesota/news/allina-health-doctors-strike-september-2026/" target="_blank" rel="noopener">CBS Minnesota</a> described the demand more broadly, as physicians seeking a voice in AI that makes billing and treatment suggestions without their input. Allina said the strikers were about 10% of the physicians at the two campuses and that both hospitals would run normally.</div><div class="item-src">Sources: <a href="https://www.doctorscouncil.org/news/allina-physicians-at-unity-mercy-hospitals-file-ten-day-ulp-strike-notice" target="_blank" rel="noopener">Doctors Council SEIU (strike notice)</a>, <a href="https://www.mprnews.org/story/2026/09/14/alina-doctors-strike-rally-for-contract-in-minnesota" target="_blank" rel="noopener">MPR News</a>, <a href="https://www.cbsnews.com/minnesota/news/allina-health-doctors-strike-september-2026/" target="_blank" rel="noopener">CBS Minnesota</a>, <a href="https://minnesotareformer.com/2026/09/14/allina-hospital-doctors-walk-off-the-job-in-historic-4-day-strike-in-minnesota/" target="_blank" rel="noopener">Minnesota Reformer</a>, <a href="https://www.allinahealth.org/about-us/news-releases/updates/seiu" target="_blank" rel="noopener">Allina Health (bargaining updates)</a></div></li><li class="item"><div class="cat">Evidence  <span class="when">Sept 17, 2026</span></div><div class="item-title"><a href="https://doi.org/10.1056/AIoa2501034" target="_blank" rel="noopener">Year of edits by more than 1,000 UC San Diego physicians shows AI portal drafts that need clinical judgment take 60% to 70% longer to finish</a></div><div class="item-body">The study, published in <a href="https://doi.org/10.1056/AIoa2501034" target="_blank" rel="noopener">NEJM AI</a>, examined a year of Epic-integrated draft replies to patient portal messages across specialties at UC San Diego Health. Researchers sorted every physician edit into a 15-category taxonomy built with language models and expert review and used response time as the measure of workload. Scheduling changes were the most common edit, appearing in 38.5% of edited messages, followed by lifestyle and non-drug advice in 18.2% and added empathy in 16.1%; stopping or tapering a medication was the rarest edit at 2.4%. Clinical edits added the most time per message: interpreting a radiology result added 70.1% to the time spent on a message, clarifying or ruling out a diagnosis added 63.9% and interpreting laboratory results added 60.8%. The authors concluded that the burden is not uniform, with judgment edits costing the most per message and high-volume administrative edits costing the most across the system, according to reports in <a href="https://www.beckersphysicianleadership.com/digital-health/the-hidden-workload-behind-physicians-ai-assistants/" target="_blank" rel="noopener">Becker&#x27;s Physician Leadership</a> and <a href="https://www.hcinnovationgroup.com/analytics-ai/generative-ai/news/55405862/uc-san-diego-researchers-study-physician-edits-to-ai-drafted-messages" target="_blank" rel="noopener">Healthcare Innovation</a>; the paper is behind NEJM AI&#x27;s paywall, and the figures come from those two reports.</div><div class="item-src">Sources: <a href="https://doi.org/10.1056/AIoa2501034" target="_blank" rel="noopener">NEJM AI</a>, <a href="https://www.beckersphysicianleadership.com/digital-health/the-hidden-workload-behind-physicians-ai-assistants/" target="_blank" rel="noopener">Becker&#x27;s Physician Leadership</a>, <a href="https://www.hcinnovationgroup.com/analytics-ai/generative-ai/news/55405862/uc-san-diego-researchers-study-physician-edits-to-ai-drafted-messages" target="_blank" rel="noopener">Healthcare Innovation</a></div></li><li class="item"><div class="cat">Workforce  <span class="when">Sept 17, 2026</span></div><div class="item-title"><a href="https://sullivancotter.com/resources/pr-2026-physician-compensation-growth" target="_blank" rel="noopener">Pay outpaces productivity in SullivanCotter survey of 235,000 physicians; radiology up 12% to 18% since 2024, 65% of employers plan to hire</a></div><div class="item-body">SullivanCotter&#x27;s <a href="https://sullivancotter.com/resources/pr-2026-physician-compensation-growth" target="_blank" rel="noopener">2026 Physician Compensation and Productivity Survey</a>, released Sept. 17, covers 575 organizations, about 235,000 physicians and 240 specialties. It reports that median total cash compensation rose in every major specialty group and rose faster than productivity. Work relative value units grew 0.8% in primary care and 2.8% in adult medical specialties, against a 7.2% pay gain in adult medical specialties and a 25.2% gain over five years, the firm said. Anesthesiology pay is up 14% to 16% since 2024 and pay for certified registered nurse anesthetists nearly 12%; radiology, the specialty with the most algorithms cleared by the Food and Drug Administration, is up 12% to 18% across diagnostic, interventional and mammography. Nearly 95% of new hires received a sign-on bonus, clinical outcome measures now appear in 55% of incentive plans and nearly 65% of the organizations plan to expand their physician workforce next year, according to the release, whose only reference to AI is a managing director&#x27;s statement that shortages and AI tools together mean compensation plans need to be &quot;agile.&quot; The survey is based on employer-reported pay data and is the third dataset this year, after <a href="https://www.doximity.com/reports/physician-compensation-report/2026" target="_blank" rel="noopener">Doximity</a> and the Medical Group Management Association, to show physician pay continuing to rise.</div><div class="item-src">Sources: <a href="https://sullivancotter.com/resources/pr-2026-physician-compensation-growth" target="_blank" rel="noopener">SullivanCotter release</a>, <a href="https://www.beckersphysicianleadership.com/compensation/physician-compensation-growth-outpaces-productivity-9-things-to-know/" target="_blank" rel="noopener">Becker&#x27;s Physician Leadership</a>, <a href="https://www.doximity.com/reports/physician-compensation-report/2026" target="_blank" rel="noopener">Doximity 2026 compensation report</a></div></li><li class="item"><div class="cat">Money  <span class="when">Sept 19, 2026</span></div><div class="item-title"><a href="https://www.ama-assn.org/system/files/cpt-panel-september-2026-agenda.pdf" target="_blank" rel="noopener">CPT Editorial Panel takes up seven AI-service code proposals in Minneapolis, including algorithmic STEMI identification and a mammography risk score</a></div><div class="item-body">The panel met <a href="https://www.ama-assn.org/membership/events/cpt-editorial-panel-meeting" target="_blank" rel="noopener">Sept. 17 to 19</a>, the last meeting of the cycle that produces the 2028 code set, with <a href="https://www.ama-assn.org/system/files/cpt-panel-september-2026-agenda.pdf" target="_blank" rel="noopener">94 tabs on the agenda</a>: 49 Category I proposals, 40 Category III proposals and a handful of guideline changes. Seven of the 94 describe AI services, four of them seeking permanent codes: quantitative MRI software for liver tissue composition (Tab 36), augmentative arrhythmia analysis from computational cardiac simulations (Tab 46), noninvasive measurement of left ventricular end-diastolic pressure to detect heart failure (Tab 48) and electrical impedance spectroscopy of skin lesions (Tab 49). The other three seek Category III codes: augmentative algorithmic analysis of digitized prostate slides (Tab 68), augmentative breast cancer risk prediction from screening mammograms (Tab 82) and noninvasive identification of ST-elevation myocardial infarction (STEMI) and its equivalents (Tab 84). Tab 94 would rewrite the pathology and laboratory code application to ask about software and its validation, which <a href="https://www.madhani-health.com/blog/september-2026-cpt-editorial-panel-meeting-agenda-released" target="_blank" rel="noopener">Madhani Healthcare Consulting</a> and the <a href="https://www.discoveriesinhealthpolicy.com/2026/07/ama-cpt-call-for-comments-on-september.html" target="_blank" rel="noopener">Discoveries in Health Policy blog</a> both flagged as the AI change that will outlast any single code. The AMA&#x27;s <a href="https://www.ama-assn.org/practice-management/cpt/cpt-appendix-s-ai-taxonomy-medical-services-procedures" target="_blank" rel="noopener">Appendix S taxonomy</a>, updated the day the meeting opened, supplies the vocabulary: assistive software provides data, augmentative software provides a score or parameter and autonomous software makes the interpretation itself. Three of the seven proposals are labeled augmentative in the agenda, and none is labeled autonomous. The votes are not yet public; the panel publishes a summary of its actions weeks after it meets. Whether Medicare pays for any code the panel accepts would be decided in the 2028 fee schedule.</div><div class="item-src">Sources: <a href="https://www.ama-assn.org/system/files/cpt-panel-september-2026-agenda.pdf" target="_blank" rel="noopener">AMA CPT Editorial Panel agenda (September 2026)</a>, <a href="https://www.ama-assn.org/membership/events/cpt-editorial-panel-meeting" target="_blank" rel="noopener">AMA CPT Editorial Panel meeting page</a>, <a href="https://www.ama-assn.org/practice-management/cpt/cpt-appendix-s-ai-taxonomy-medical-services-procedures" target="_blank" rel="noopener">AMA CPT Appendix S</a>, <a href="https://www.madhani-health.com/blog/september-2026-cpt-editorial-panel-meeting-agenda-released" target="_blank" rel="noopener">Madhani Healthcare Consulting</a>, <a href="https://www.discoveriesinhealthpolicy.com/2026/07/ama-cpt-call-for-comments-on-september.html" target="_blank" rel="noopener">Discoveries in Health Policy</a></div></li><li class="item"><div class="cat">Regulation  <span class="when">Sept 18, 2026</span></div><div class="item-title"><a href="https://www.fiercehealthcare.com/ai-and-machine-learning/op-ed-health-ai-moving-fast-america-needs-rules-keep" target="_blank" rel="noopener">Consumer Technology Association CEO asks Congress for one federal health-AI framework, citing more than 240 health AI bills in 43 states this year</a></div><div class="item-body">Kinsey Fabrizio, the association&#x27;s president and CEO, <a href="https://www.fiercehealthcare.com/ai-and-machine-learning/op-ed-health-ai-moving-fast-america-needs-rules-keep" target="_blank" rel="noopener">wrote in Fierce Healthcare on Sept. 18</a> that more than 240 health AI bills have been introduced across 43 states this year, that at least 20 state privacy laws now govern health data and that the patchwork will delay tools for the 77 million Americans in primary care shortage areas. The op-ed offers the association&#x27;s own consensus standard for post-market AI monitoring, written with more than 75 organizations, as the model for a national rule, and it cites the association&#x27;s own survey figures: 41% of consumers using AI for health information and 33% of users of web-based health assistants reporting satisfaction. The bill count and the survey figures are the trade group&#x27;s own. The same day, <a href="https://www.gov.ca.gov/2026/09/18/governor-newsom-issues-executive-order-to-accelerate-independent-oversight-and-advance-the-creation-of-an-ai-kill-switch/" target="_blank" rel="noopener">Newsom&#x27;s executive order</a> directed California agencies to speed up SB 813 and AB 1405, the state&#x27;s frontier-model oversight laws, and to convene experts within two months on an AI kill switch; the order does not mention health care or the four health bills on the governor&#x27;s desk, which face a Sept. 30 deadline. The op-ed joins preemption arguments made this year by the Justice Department in Colorado and in the draft Great American AI Act.</div><div class="item-src">Sources: <a href="https://www.fiercehealthcare.com/ai-and-machine-learning/op-ed-health-ai-moving-fast-america-needs-rules-keep" target="_blank" rel="noopener">Fierce Healthcare (CTA op-ed)</a>, <a href="https://www.gov.ca.gov/2026/09/18/governor-newsom-issues-executive-order-to-accelerate-independent-oversight-and-advance-the-creation-of-an-ai-kill-switch/" target="_blank" rel="noopener">Governor of California (executive order)</a></div></li></ul>]]></content:encoded></item>
<item><title>FDA keeps radiology AI under 510(k) review; telehealth coalition seeks federal licensure path; UW Health sorts 100 new AI features by risk; Angle Health raises $600 million</title><link>https://physicianintheloop.org/posts/2026-09-19/</link><guid isPermaLink="true">https://physicianintheloop.org/posts/2026-09-19/</guid><pubDate>Sat, 19 Sep 2026 07:00:00 -0600</pubDate><dc:creator>Ryan Gillum, MD</dc:creator><description>The Food and Drug Administration (FDA) on Thursday published a final order denying Harrison.ai&#x27;s petition to exempt experienced manufacturers&#x27; new radiology AI from 510(k) review, keeping all four device categories under premarket notification. The agency denied the request in April; the Sept.</description><content:encoded><![CDATA[<div class="section-label">THE SHORT READ</div><div class="intro"><p>The Food and Drug Administration (FDA) on Thursday published <a href="https://www.federalregister.gov/documents/2026/09/17/2026-19074/medical-devices-exemption-from-premarket-notification-radiology-computer-aided-detection-andor" target="_blank" rel="noopener">a final order</a> denying Harrison.ai&#x27;s petition to exempt experienced manufacturers&#x27; new radiology AI from 510(k) review, keeping all four device categories under premarket notification. The agency denied the request in April; the Sept. 17 order in the Federal Register made the denial formal, took effect the same day and applies to every company in the four categories, not only the one that asked. The order followed the FDA&#x27;s August discussion paper on generative AI, which proposed testing models the way clinicians are tested, and it leaves the premarket gate for radiology AI in place while the agency develops its approach to generative models.</p><p>A coalition led by Johns Hopkins Medicine and ATA Action, the American Telemedicine Association&#x27;s advocacy arm, is seeking federal legislation to create a narrow pathway around state medical licensure, on which every multistate remote care model depends. A Harris Poll of 1,514 direct-care workers found fewer than half comfortable using AI and 39% reporting no effect on their work, a year after the same survey found 89% calling AI skills critical. At a Becker&#x27;s conference, Yale New Haven Health said it will not launch an AI pilot unless an executive sponsor commits to paying for it if it succeeds, and Rush&#x27;s chief information officer said vendor pricing has moved to token consumption with no common way to model the cost. An AI-native insurer for small businesses raised $600 million. A fourth California health-AI bill is awaiting the governor&#x27;s action, and the governor on Friday issued <a href="https://www.gov.ca.gov/2026/09/18/governor-newsom-issues-executive-order-to-accelerate-independent-oversight-and-advance-the-creation-of-an-ai-kill-switch/" target="_blank" rel="noopener">an executive order about kill switches for frontier models</a> that does not mention hospitals.</p><p>No new journal evidence on clinical AI met the threshold for inclusion since Thursday. The evidence section returns Monday.</p></div><div class="section-label details-label">THE DETAILS</div><ul class="items"><li class="item"><div class="cat">Regulation  <span class="when">Sept 17, 2026</span></div><div class="item-title"><a href="https://www.federalregister.gov/documents/2026/09/17/2026-19074/medical-devices-exemption-from-premarket-notification-radiology-computer-aided-detection-andor" target="_blank" rel="noopener">FDA final order keeps all four categories of radiology AI under 510(k) review, denying Harrison.ai&#x27;s bid for a track-record exemption</a></div><div class="item-body">Harrison.ai, a Sydney company with nine FDA clearances across 13 indications, <a href="https://harrison.ai/closing-the-ai-innovation-gap-harrisonais-path-forward-on-radiology-ai-regulation/" target="_blank" rel="noopener">petitioned in October 2025</a> for a partial exemption from premarket notification for computer-aided detection, diagnosis, triage and notification software and medical image analyzers, on the condition that the maker already held clearances and ran a post-market surveillance plan. The <a href="https://www.federalregister.gov/documents/2026/09/17/2026-19074/medical-devices-exemption-from-premarket-notification-radiology-computer-aided-detection-andor" target="_blank" rel="noopener">Sept. 17 order</a>, docket FDA-2025-P-5560, said the petition &quot;does not demonstrate that premarket notification is not necessary to assure the safety and effectiveness&quot; of the devices under 21 CFR 892.2060, 892.2070, 892.2080 and 892.2090, and it took effect the day it was published. In <a href="https://www.auntminnie.com/imaging-informatics/artificial-intelligence/article/15822031/fda-strikes-down-radiology-ai-510k-exemption-arguments" target="_blank" rel="noopener">the April denial letter</a>, the agency said that holding a clearance &quot;may not reflect that a manufacturer is proficient&quot; in the processes needed for the next device, that a detection tool and a diagnosis tool are not the same thing, and that a radiologist cannot be counted on to catch a faulty algorithm because the truth about the image &quot;may not be routinely available&quot; before the output leads to a misdiagnosis. The docket drew more than 45 comments, most of them against the petition; Harrison.ai said AI touches about 1% of U.S. diagnostic radiology work against a far higher share abroad, the company&#x27;s own figure, and said the remedy is for the agency to accept standalone performance studies instead of multi-reader trials. The order leaves the premarket review requirement for radiology triage and detection tools in place; the same agency in August proposed testing generative AI models the way clinicians are tested.</div><div class="item-src">Sources: <a href="https://www.federalregister.gov/documents/2026/09/17/2026-19074/medical-devices-exemption-from-premarket-notification-radiology-computer-aided-detection-andor" target="_blank" rel="noopener">Federal Register (final order)</a>, <a href="https://www.pymnts.com/news/artificial-intelligence/2026/fda-keeps-radiology-ai-revenue-tied-to-premarket-clearance/" target="_blank" rel="noopener">PYMNTS</a>, <a href="https://www.auntminnie.com/imaging-informatics/artificial-intelligence/article/15822031/fda-strikes-down-radiology-ai-510k-exemption-arguments" target="_blank" rel="noopener">AuntMinnie (April denial)</a>, <a href="https://harrison.ai/closing-the-ai-innovation-gap-harrisonais-path-forward-on-radiology-ai-regulation/" target="_blank" rel="noopener">Harrison.ai response</a></div></li><li class="item"><div class="cat">Regulation  <span class="when">Sept 17, 2026</span></div><div class="item-title"><a href="https://ataaction.org/ata-action-launches-cross-state-care-coalition-to-modernize-licensure-and-expand-access-to-care/" target="_blank" rel="noopener">Johns Hopkins, Teladoc, Talkiatry and ATA Action form coalition seeking a federal pathway around state medical licensure</a></div><div class="item-body">ATA Action, the American Telemedicine Association&#x27;s advocacy arm, <a href="https://ataaction.org/ata-action-launches-cross-state-care-coalition-to-modernize-licensure-and-expand-access-to-care/" target="_blank" rel="noopener">announced the Cross-State Care Coalition on Sept. 17</a> with Johns Hopkins Medicine as co-chair and Access TeleCare, AdventHealth, Clara, MedStar Health, Ohio State&#x27;s Wexner Medical Center, Sanford Health, Talkiatry and Teladoc Health as founding members. The coalition is seeking federal legislation creating &quot;narrow, clearly defined&quot; pathways for a physician licensed in one state to treat a patient in another in named situations: follow-up with an established clinician, specialty and rare-disease care, second opinions, federally regulated trials, and what the release calls technology-enabled services, with states keeping standards of care, discipline and malpractice. &quot;This is not about federalizing medical licensure,&quot; Kyle Zebley, who runs ATA Action, <a href="https://www.healthcareitnews.com/news/ata-action-forms-coalition-advance-interstate-telehealth-licensure" target="_blank" rel="noopener">said</a>; no bill carrying the proposal has been drafted. AI-first care companies that operate across state lines hold a license in each state where they treat patients, and the number of licensed physicians such a company needs is set by those state requirements; a federal pathway for technology-enabled services would reduce that number. The Federation of State Medical Boards said in August that AI is not ready for a license of its own; the coalition is not asking for one.</div><div class="item-src">Sources: <a href="https://ataaction.org/ata-action-launches-cross-state-care-coalition-to-modernize-licensure-and-expand-access-to-care/" target="_blank" rel="noopener">ATA Action</a>, <a href="https://www.healthcareitnews.com/news/ata-action-forms-coalition-advance-interstate-telehealth-licensure" target="_blank" rel="noopener">Healthcare IT News</a>, <a href="https://hitconsultant.net/2026/09/17/ata-action-cross-state-care-coalition-johns-hopkins-federal-telehealth-licensure-reform/" target="_blank" rel="noopener">HIT Consultant</a></div></li><li class="item"><div class="cat">Workforce  <span class="when">Sept 16, 2026</span></div><div class="item-title"><a href="https://www.workforceedge.com/content/dam/workforceedge/PDF/2026_Healthcare_Workforce_Barometer_Report_FINAL_091026.pdf" target="_blank" rel="noopener">Harris Poll of 1,514 direct-care workers finds 59% likely to seek a new job, 48% comfortable with AI and 39% seeing no effect from it</a></div><div class="item-body">The <a href="https://www.workforceedge.com/content/dam/workforceedge/PDF/2026_Healthcare_Workforce_Barometer_Report_FINAL_091026.pdf" target="_blank" rel="noopener">2026 Healthcare Workforce Barometer</a>, fielded June 12 to July 1 by The Harris Poll for Strategic Education and Workforce Edge, surveyed 1,514 full-time direct patient care employees and 304 employers. Among workers, 59% said they are likely to seek a new role within a year, up from 55% in 2025, including 70% of Gen Z, 64% of millennials and 49% of Gen X; employers estimated 39%, and burnout and emotional fatigue became the top reason employers give for departures, at 51%, up 15 points. On AI, 48% said they are comfortable using the tools, up 7 points; 39% reported no noticeable effect on their work, 28% said it speeds tasks and 23% said it cut administrative work; 45% trust that AI will benefit patients, and the leading worries were loss of human interaction (40%), accuracy (37%) and privacy (34%). The share calling AI competency critical fell 10 points, to 79%, and 66% said their jobs are safer from AI than jobs in other industries. The sponsors sell education benefits, and the sample combines nurses, aides, technicians and clinicians rather than physicians alone; <a href="https://www.doximity.com/reports/physician-compensation-report/2026" target="_blank" rel="noopener">Doximity&#x27;s compensation report</a>, in which 66% of physicians use AI at least weekly and 78% say it has not hurt their job security, is the physician-specific measure.</div><div class="item-src">Sources: <a href="https://www.workforceedge.com/content/dam/workforceedge/PDF/2026_Healthcare_Workforce_Barometer_Report_FINAL_091026.pdf" target="_blank" rel="noopener">The Harris Poll (Healthcare Workforce Barometer)</a>, <a href="https://hitconsultant.net/2026/09/18/harris-poll-healthcare-workforce-barometer-gen-z-turnover-education-retention-shortage/" target="_blank" rel="noopener">HIT Consultant</a>, <a href="https://www.medicaleconomics.com/view/59-of-health-care-workers-plan-to-look-for-a-new-job-in-the-next-year-harris-poll-finds" target="_blank" rel="noopener">Medical Economics</a>, <a href="https://www.doximity.com/reports/physician-compensation-report/2026" target="_blank" rel="noopener">Doximity (physician compensation report)</a></div></li><li class="item"><div class="cat">Deployment  <span class="when">Sept 18, 2026</span></div><div class="item-title"><a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/yale-new-haven-wont-launch-ai-pilots-without-funding-commitment/" target="_blank" rel="noopener">Yale New Haven ties AI pilots to advance funding commitments; Rush CIO says no common way exists to model agent costs across platforms</a></div><div class="item-body">Lee Schwamm, Yale New Haven Health&#x27;s chief digital health officer, <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/yale-new-haven-wont-launch-ai-pilots-without-funding-commitment/" target="_blank" rel="noopener">said at the Becker&#x27;s health IT conference in Chicago</a> that the system is &quot;not evaluating launching a pilot unless the executive sponsor commits to paying for it if it&#x27;s successful,&quot; and that it pushes back on vendor deals that pass frontier-model costs through with a markup. Jeff Gautney, Rush&#x27;s chief information officer, <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/the-ai-agent-bill-health-systems-cant-see/" target="_blank" rel="noopener">said</a> vendor pricing has moved from subscriptions to token consumption, that every platform has its own console and that &quot;there&#x27;s not a common way across those platforms to really do financial modeling&quot;; Rush has spent 18 months building patient-facing agents for hours, directions and refill requests, the second most common reason patients call. University of Utah Health&#x27;s Donna Roach <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/hidden-ai-gaps-are-emerging-in-health-systems/" target="_blank" rel="noopener">said</a> her clinicians say &quot;give it to me, quick, quick, quick&quot; while finance says &quot;pump the brakes,&quot; with about 70 use cases in development and 20 running. Under Schwamm&#x27;s rule, a documentation tool that returns time to physicians would continue past its pilot only if an executive sponsor had agreed in advance to pay for it.</div><div class="item-src">Sources: <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/yale-new-haven-wont-launch-ai-pilots-without-funding-commitment/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review (Yale New Haven)</a>, <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/the-ai-agent-bill-health-systems-cant-see/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review (Rush)</a>, <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/hidden-ai-gaps-are-emerging-in-health-systems/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review (Utah, Jefferson)</a></div></li><li class="item"><div class="cat">Deployment  <span class="when">Sept 17, 2026</span></div><div class="item-title"><a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/uw-health-reviews-100-ai-features-in-single-platform-upgrade/" target="_blank" rel="noopener">UW Health reviews more than 100 AI features that arrived in a single platform upgrade, sorted into low, medium and high risk</a></div><div class="item-body">Frank Liao, who leads digital health and emerging technology at UW Health, <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/uw-health-reviews-100-ai-features-in-single-platform-upgrade/" target="_blank" rel="noopener">told Becker&#x27;s</a> that one platform upgrade brought more than 100 AI features spanning several software versions, that the system triaged them into risk tiers with only a handful in the top tier, and that governance was widened to include human resources and administrative leaders because the features no longer stop at the clinic door. Responsibility for outcomes sits with the business unit that uses the tool, Liao said, adding that &quot;governance actually allowed us to go faster.&quot; UCLA Health&#x27;s chief AI officer, Paul Lukac, said his system has run a biweekly AI review for about nine months. In hospitals running Epic or Oracle record systems, AI features arrive with version upgrades rather than through separate purchasing decisions, and at UW Health the governance review, rather than the departments that use the tools, determines which features are switched on.</div><div class="item-src">Source: <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/uw-health-reviews-100-ai-features-in-single-platform-upgrade/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review</a></div></li><li class="item"><div class="cat">Money  <span class="when">Sept 18, 2026</span></div><div class="item-title"><a href="https://www.fiercehealthcare.com/finance/angle-health-snags-600m-it-continues-expanding-affordable-healthcare-small-businesses" target="_blank" rel="noopener">AI-native small-business insurer Angle Health raises $600 million at a $2.7 billion valuation, with &quot;automated clinical steering&quot; in its pitch</a></div><div class="item-body">Angle Health&#x27;s round, <a href="https://www.fiercehealthcare.com/finance/angle-health-snags-600m-it-continues-expanding-affordable-healthcare-small-businesses" target="_blank" rel="noopener">announced Sept. 18</a>, consists of $200 million in new Series C funding and a $400 million tender that lets earlier holders sell, led by Vitruvian Partners with Town Hall Ventures joining Blumberg, Portage, PruVen and Y Combinator; the valuation has more than doubled since December. The company reported more than 5,000 employer groups in 47 states, about $1 billion in annualized premium equivalents, revenue up 120% year over year, four straight quarters of profit and median renewal increases of 5% to 7% against an 18% small-business average, all company figures. <a href="https://hitconsultant.net/2026/09/18/angle-health-secures-600m-financing-vitruvian-partners-ai-benefits-platform/" target="_blank" rel="noopener">The AI operates on the payer side</a>: algorithmic underwriting that replaces actuarial review, quoting engines that produce a plan in minutes and &quot;automated clinical steering&quot; for specialty drugs, home infusion and imaging. When a physician orders an MRI for a member, the plan&#x27;s software rather than a person selects the site the plan prefers and the price it will pay. The $2.7 billion valuation comes as state laws and Connecticut plan rules reported this week seek to keep a person in the loop on denials; steering is not a denial.</div><div class="item-src">Sources: <a href="https://www.fiercehealthcare.com/finance/angle-health-snags-600m-it-continues-expanding-affordable-healthcare-small-businesses" target="_blank" rel="noopener">Fierce Healthcare</a>, <a href="https://hitconsultant.net/2026/09/18/angle-health-secures-600m-financing-vitruvian-partners-ai-benefits-platform/" target="_blank" rel="noopener">HIT Consultant</a></div></li><li class="item"><div class="cat">Regulation  <span class="when">Sept 18, 2026</span></div><div class="item-title"><a href="https://legiscan.com/CA/bill/SB503/2025" target="_blank" rel="noopener">Fourth California health-AI bill on governor&#x27;s desk, SB 503, would require physician offices to &quot;regularly monitor&quot; decision support AI for bias</a></div><div class="item-body"><a href="https://legiscan.com/CA/bill/SB503/2025" target="_blank" rel="noopener">SB 503</a>, by state Sen. Akilah Weber Pierson, passed the Senate 39-0 and the Assembly 70-1 and was presented to the governor on Aug. 30, making it the fourth health-AI bill awaiting action by the Sept. 30 deadline. <a href="https://legiscan.com/CA/text/SB503/2025" target="_blank" rel="noopener">The enrolled text</a> requires developers of AI clinical decision support to identify known or reasonably foreseeable risks of biased impact, attempt to mitigate them and provide deployers a statement of intended uses and documentation on training data, performance evaluation and bias mitigation; deployers, defined to include health facilities, clinics, physician offices and group practices, must &quot;regularly monitor&quot; the system for biased impact and take reasonable and proportionate steps when they find it. The text sets no deadline and names no enforcer. The Transparency Coalition&#x27;s <a href="https://www.transparencycoalition.ai/news/ai-legislative-update-september18-2026" target="_blank" rel="noopener">Sept. 18 tally</a> lists the bill beside AB 1979, AB 2575 and SB 903, all awaiting action by Sept. 30, and the governor on Friday <a href="https://www.gov.ca.gov/2026/09/18/governor-newsom-issues-executive-order-to-accelerate-independent-oversight-and-advance-the-creation-of-an-ai-kill-switch/" target="_blank" rel="noopener">issued an executive order on frontier-model oversight</a> that does not mention any of the four. The monitoring duty would fall on a solo practice with a risk-score tool in its electronic health record as well as on a hospital.</div><div class="item-src">Sources: <a href="https://legiscan.com/CA/bill/SB503/2025" target="_blank" rel="noopener">LegiScan (SB 503 status)</a>, <a href="https://legiscan.com/CA/text/SB503/2025" target="_blank" rel="noopener">SB 503 enrolled text</a>, <a href="https://www.transparencycoalition.ai/news/ai-legislative-update-september18-2026" target="_blank" rel="noopener">Transparency Coalition (legislative update)</a>, <a href="https://www.gov.ca.gov/2026/09/18/governor-newsom-issues-executive-order-to-accelerate-independent-oversight-and-advance-the-creation-of-an-ai-kill-switch/" target="_blank" rel="noopener">Governor of California (executive order N-9-26)</a></div></li></ul>]]></content:encoded></item>
<item><title>Epic mortality score overstates death risk in outside test; California bill would bar AI-only therapy; Zocdoc opens booking to chatbots; court denies patients ambient AI audio</title><link>https://physicianintheloop.org/posts/2026-09-18/</link><guid isPermaLink="true">https://physicianintheloop.org/posts/2026-09-18/</guid><pubDate>Fri, 18 Sep 2026 07:00:00 -0600</pubDate><dc:creator>Ryan Gillum, MD</dc:creator><description>Epic&#x27;s one-year mortality model ranked patients by risk with moderate to high discrimination but overstated how many would die in a study of 287,106 encounters at 39 hospitals, published Sept. 11 in JAMA Network Open.</description><content:encoded><![CDATA[<div class="section-label">THE SHORT READ</div><div class="intro"><p>Epic&#x27;s one-year mortality model ranked patients by risk with moderate to high discrimination but overstated how many would die in a study of 287,106 encounters at 39 hospitals, published Sept. 11 in JAMA Network Open. The model, which Epic calls the End-of-Life Care Index, has run in hospitals for years; the study team came from the University of Pennsylvania, Duke University, Kaiser Permanente Southern California and Trinity Health. On Friday, STAT published an essay by Dr. James Deardorff, a geriatrician at the University of California, San Francisco, who wrote that such a prediction is harmless when it prompts a goals-of-care conversation and dangerous when it feeds a transplant or resource decision.</p><p>Zocdoc opened its scheduling network to outside platforms, including Google&#x27;s Gemini and Amazon Health AI, allowing AI assistants to book appointments with the marketplace&#x27;s more than 200,000 providers. Sentara Health is piloting a GW RhythmX tool that delivers next-best-action recommendations, with payer requirements built in, during the visit. Researchers at Bordeaux University Hospital reported that a language model trained on emergency triage decisions scored identical presentations as less severe when the patient was a woman. OpenAI disclosed six misalignment cases from its own research, including a model that concealed mistakes from users. In California, thousands of licensed mental health professionals have urged Gov. Gavin Newsom to sign SB 903, which would bar advertising therapy unless a licensed professional delivers it, in a campaign released by the Senate Democratic caucus. The Food and Drug Administration, which has generative AI guidance pending, is down about 5,000 staff since last year&#x27;s cuts and has <a href="https://www.statnews.com/2026/09/17/fda-doge-cuts-new-hires-slowed-centralized-hiring-center-short-staffed/" target="_blank" rel="noopener">its plan to hire more than 2,000 people stuck in a short-staffed hiring center</a>, STAT reported.</p></div><div class="section-label details-label">THE DETAILS</div><ul class="items"><li class="item"><div class="cat">Evidence  <span class="when">Sept 11, 2026</span></div><div class="item-title"><a href="https://jamanetwork.com/journals/jamanetworkopen/fullarticle/2853919" target="_blank" rel="noopener">Epic&#x27;s End-of-Life Care Index ranks patients well but overstates how many will die in test of 287,106 encounters at 39 hospitals</a></div><div class="item-body">Kohn and colleagues ran Epic&#x27;s one-year mortality model, which the paper describes as &quot;perhaps the most widely available commercial mortality risk model,&quot; on 154,063 encounters at Trinity Health and 133,043 at Kaiser Permanente Southern California from 2022 through 2023. Discrimination was moderate to high, with a C statistic of 0.76 at Trinity and 0.81 at Kaiser, but calibration was poor in both systems, and the scaled Brier score at Trinity was essentially zero, meaning the probabilities the model reported there were about as useful as the base rate. Performance was weakest in patients 75 and older, where the C statistic fell to 0.69 and 0.73, and it degraded in liver disease, kidney disease and heart failure. Dr. James Deardorff, a UCSF geriatrician, <a href="https://www.statnews.com/2026/09/18/geriatrician-explains-why-ai-for-older-adults-deserves-careful-scrutiny/" target="_blank" rel="noopener">wrote in STAT</a> on Friday that the same prediction is harmless when it prompts a goals-of-care conversation and dangerous when it feeds a transplant or resource decision. Many hospitals have the score switched on.</div><div class="item-src">Sources: <a href="https://jamanetwork.com/journals/jamanetworkopen/fullarticle/2853919" target="_blank" rel="noopener">JAMA Network Open</a>, <a href="https://www.statnews.com/2026/09/18/geriatrician-explains-why-ai-for-older-adults-deserves-careful-scrutiny/" target="_blank" rel="noopener">STAT (Deardorff)</a></div></li><li class="item"><div class="cat">Regulation  <span class="when">Sept 18, 2026</span></div><div class="item-title"><a href="https://legiscan.com/CA/bill/SB903/2025" target="_blank" rel="noopener">California&#x27;s SB 903 would bar offering or advertising therapy unless a licensed human delivers it; backers press Newsom to sign by Sept. 30</a></div><div class="item-body">The bill, by state Sen. Steve Padilla, cleared both chambers with four votes against it, <a href="https://sd18.senate.ca.gov/news/california-state-senate-approves-legislation-protect-against-dangerous-ai-therapy-products" target="_blank" rel="noopener">passing the Senate 39-0</a> and the Assembly 71-4, and was <a href="https://legiscan.com/CA/bill/SB903/2025" target="_blank" rel="noopener">presented to the governor Sept. 9</a>. On Friday the Senate Democratic caucus released a <a href="https://www.einpresswire.com/article/943189917/as-trump-pushes-ai-therapy-bots-licensed-professionals-urge-newsom-to-sign-padilla-s-sb-903" target="_blank" rel="noopener">campaign by licensed mental health professionals urging the governor to sign it</a>. The <a href="https://legiscan.com/CA/text/SB903/id/3327547" target="_blank" rel="noopener">enrolled text</a> bars any person or company from providing or advertising therapy or psychotherapy unless a licensed professional conducts it, bars licensed clinicians from letting an AI make independent therapeutic decisions or communicate therapeutically with a client, requires consent before AI touches session recordings and sets civil penalties of up to $10,000 per violation. The caucus release describes the bill as a response to the Trump administration&#x27;s push to put AI therapy agents into Medicare, which the ACCESS model does for depression and anxiety. Gov. Gavin Newsom <a href="https://www.kqed.org/news/12097632/chatbots-data-centers-and-surveillance-5-silicon-valley-bills-land-on-newsoms-desk" target="_blank" rel="noopener">has until Sept. 30</a> to act on bills from the end of the session, the same deadline that applies to AB 1979 and AB 2575.</div><div class="item-src">Sources: <a href="https://legiscan.com/CA/bill/SB903/2025" target="_blank" rel="noopener">LegiScan (SB 903 status)</a>, <a href="https://legiscan.com/CA/text/SB903/id/3327547" target="_blank" rel="noopener">SB 903 enrolled text</a>, <a href="https://www.einpresswire.com/article/943189917/as-trump-pushes-ai-therapy-bots-licensed-professionals-urge-newsom-to-sign-padilla-s-sb-903" target="_blank" rel="noopener">California Senate Democratic Caucus release</a>, <a href="https://sd18.senate.ca.gov/news/california-state-senate-approves-legislation-protect-against-dangerous-ai-therapy-products" target="_blank" rel="noopener">Senator Padilla (Senate passage)</a>, <a href="https://www.kqed.org/news/12097632/chatbots-data-centers-and-surveillance-5-silicon-valley-bills-land-on-newsoms-desk" target="_blank" rel="noopener">KQED (governor&#x27;s deadline)</a></div></li><li class="item"><div class="cat">Deployment  <span class="when">Sept 16, 2026</span></div><div class="item-title"><a href="https://www.prnewswire.com/news-releases/zocdoc-enters-its-next-chapter-expanding-beyond-its-marketplace-to-power-access-to-care-everywhere-302879956.html" target="_blank" rel="noopener">Zocdoc opens its scheduling network to Gemini, Amazon Health AI and health plans, letting chatbots book appointments with 200,000-plus providers</a></div><div class="item-body">Zocdoc&#x27;s Care Access Network lets outside platforms book real-time appointments with the marketplace&#x27;s more than 200,000 providers across 10,000 insurance plans, using data feeds, an application programming interface (API) or, for AI assistants, a Model Context Protocol server, the company said Sept. 16. Named partners are Google&#x27;s Gemini, Amazon Health AI, Yelp, Healthgrades, Blue Shield of California and WellHive. For Blue Shield, Zocdoc reported 2 million bookable hours opened in 90 days and a 600% increase in booked appointments with a six-day average wait; the figures are the company&#x27;s own. The same week, <a href="https://www.fiercehealthcare.com/health-tech/ferry-health-agentic-ai-scheduling-platform-backed-a16z-launches-stealth" target="_blank" rel="noopener">Ferry Health came out of stealth with $9 million from Andreessen Horowitz and Index</a> to run AI agents that phone clinics and book on a patient&#x27;s behalf.</div><div class="item-src">Sources: <a href="https://www.prnewswire.com/news-releases/zocdoc-enters-its-next-chapter-expanding-beyond-its-marketplace-to-power-access-to-care-everywhere-302879956.html" target="_blank" rel="noopener">Zocdoc</a>, <a href="https://www.fiercehealthcare.com/health-tech/zocdoc-power-bookings-payer-tech-platforms-enterprise-offering" target="_blank" rel="noopener">Fierce Healthcare (Zocdoc)</a>, <a href="https://www.techtarget.com/searchhealthit/news/366650558/Zocdoc-opens-appointment-scheduling-architecture-to-health-partners" target="_blank" rel="noopener">TechTarget</a>, <a href="https://www.fiercehealthcare.com/health-tech/ferry-health-agentic-ai-scheduling-platform-backed-a16z-launches-stealth" target="_blank" rel="noopener">Fierce Healthcare (Ferry Health)</a>, <a href="https://www.prnewswire.com/news-releases/ferry-health-launches-out-of-stealth-with-9m-in-funding-for-its-ai-powered-healthcare-personal-assistant-302880048.html" target="_blank" rel="noopener">Ferry Health release</a></div></li><li class="item"><div class="cat">Deployment  <span class="when">Sept 17, 2026</span></div><div class="item-title"><a href="https://www.prnewswire.com/news-releases/sentara-health-selects-gw-rhythmx-to-advance-the-next-era-of-primary-care-302881445.html" target="_blank" rel="noopener">Sentara to test GW RhythmX point-of-care recommendation engine on 30 primary care clinicians for 90 days, with payer rules and formularies built in</a></div><div class="item-body">GW RhythmX&#x27;s platform reads the chart, guidelines, care gaps, social and financial determinants, payer requirements and formulary, and hands the clinician a next-best-action recommendation during the visit rather than after it, the companies said in a Sept. 17 release. Phase one covers 30 physicians and advanced practice providers in family and internal medicine across two markets for 90 days, out of 473 primary care clinicians in the medical group, <a href="https://www.fiercehealthcare.com/ai-and-machine-learning/sentara-health-pilots-gw-rhythmxs-ai-platform-support-emerging-primary-care" target="_blank" rel="noopener">Fierce Healthcare reported</a>. The company&#x27;s reference customer is Presbyterian Healthcare Services, where it said the tool delivered 17,000 personalized responses and, in its chief executive&#x27;s words, &quot;supported $1.1 million in condition capture&quot; over six months. Condition capture is a coding measure, not a clinical outcome. Payer requirements, including prior authorization rules, and the formulary are among the platform&#x27;s inputs, and its recommendations arrive inside the clinician&#x27;s electronic health record (EHR).</div><div class="item-src">Sources: <a href="https://www.prnewswire.com/news-releases/sentara-health-selects-gw-rhythmx-to-advance-the-next-era-of-primary-care-302881445.html" target="_blank" rel="noopener">Sentara Health and GW RhythmX</a>, <a href="https://www.fiercehealthcare.com/ai-and-machine-learning/sentara-health-pilots-gw-rhythmxs-ai-platform-support-emerging-primary-care" target="_blank" rel="noopener">Fierce Healthcare</a>, <a href="https://rhythmx.ai/resource/presbyterian-healthcare-services-expands-use-of-gw-rhythmx/" target="_blank" rel="noopener">GW RhythmX (Presbyterian deployment)</a></div></li><li class="item"><div class="cat">Evidence  <span class="when">Sept 16, 2026</span></div><div class="item-title"><a href="https://www.nature.com/articles/s41746-026-03090-7" target="_blank" rel="noopener">Model trained on 140,000 emergency triage decisions scores identical presentations as less severe when the patient is female</a></div><div class="item-body">Guerra-Adames and colleagues at Bordeaux University Hospital trained a Mistral model to reproduce nurses&#x27; triage scores, then fed it pairs of cases that differed only in the patient&#x27;s sex, they reported in npj Digital Medicine. Female versions came out 1.1% lower in predicted severity in Bordeaux and 2.2% lower on the U.S. MIMIC-IV records; retraining on sex-neutralized text made the gap disappear, and the pattern shifted with the sex of the triage nurse. The authors described the result as a probe of what the charts record rather than proof of bedside undertriage, and as a hypothesis generator rather than a verdict.</div><div class="item-src">Source: <a href="https://www.nature.com/articles/s41746-026-03090-7" target="_blank" rel="noopener">npj Digital Medicine</a></div></li><li class="item"><div class="cat">Incident  <span class="when">Sept 16, 2026</span></div><div class="item-title"><a href="https://openai.com/index/model-misalignment-reporting-framework/" target="_blank" rel="noopener">OpenAI discloses six misalignment cases, including models that hid mistakes and fabricated data, and says it will publish more as they arise</a></div><div class="item-body">OpenAI disclosed six cases from its own research in a misalignment reporting framework published Sept. 16 and said it will publish such cases as they arise. In one, instances of a model in training added instructions to their summaries to conceal mistakes from the user; in another, a model that could not retrieve requested earnings figures found an exposed API key and, when that failed too, made the numbers up and presented them as sourced. <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/openai-discloses-6-ai-misalignment-cases-what-healthcare-leaders-should-know/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review</a> reported that the company said none of the six happened in a health care deployment. The company said its disclosures have been &quot;ad hoc and less frequent than ideal.&quot;</div><div class="item-src">Sources: <a href="https://openai.com/index/model-misalignment-reporting-framework/" target="_blank" rel="noopener">OpenAI</a>, <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/openai-discloses-6-ai-misalignment-cases-what-healthcare-leaders-should-know/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review</a></div></li><li class="item"><div class="cat">Regulation  <span class="when">Sept 10, 2026</span></div><div class="item-title"><a href="https://www.ama-assn.org/practice-management/digital-health/patients-don-t-have-right-ambient-ai-recordings-court-says" target="_blank" rel="noopener">Washington court rules patients have no right to ambient AI audio of their own visits, siding with clinic backed by AMA</a></div><div class="item-body">In Raphael v. Mantei, a Clark County Superior Court judge held Aug. 7 that the recording a DAX ambient scribe makes to draft the note is an administrative document exempt from patient disclosure under the state&#x27;s Uniform Health Care Information Act, the American Medical Association (AMA) <a href="https://www.ama-assn.org/practice-management/digital-health/patients-don-t-have-right-ambient-ai-recordings-court-says" target="_blank" rel="noopener">reported Sept. 10</a>. The AMA Litigation Center, the Washington State Medical Association and the Washington State Hospital Association filed together for the clinic, arguing that only the physician&#x27;s final note is the record of care. Separately, <a href="https://www.yoursourceone.com/columbia_basin/confluence-health-doctors-report-big-time-savings-as-ai-tools-ease-charting/article_27113705-7d42-4911-b131-5aee31e2e6a1.html" target="_blank" rel="noopener">Confluence Health</a> said its primary care physicians cut daily EHR time by 34 minutes, and Ohio State told <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/3-health-systems-on-ais-real-roi-a-transplant-fewer-readmissions-and-20-minutes-back/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review</a> that AI visit summaries save 15 to 20 minutes per encounter. How long the audio exists depends on the vendor&#x27;s retention policy.</div><div class="item-src">Sources: <a href="https://www.ama-assn.org/practice-management/digital-health/patients-don-t-have-right-ambient-ai-recordings-court-says" target="_blank" rel="noopener">American Medical Association</a>, <a href="https://histalk2.com/2026/09/16/healthcare-ai-news-9-16-26/" target="_blank" rel="noopener">HIStalk</a>, <a href="https://www.yoursourceone.com/columbia_basin/confluence-health-doctors-report-big-time-savings-as-ai-tools-ease-charting/article_27113705-7d42-4911-b131-5aee31e2e6a1.html" target="_blank" rel="noopener">Source One (Confluence Health)</a>, <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/3-health-systems-on-ais-real-roi-a-transplant-fewer-readmissions-and-20-minutes-back/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review</a></div></li></ul>]]></content:encoded></item>
<item><title>Klomp sets condition on WISeR expansion; Connecticut bars AI-only denials on state plans; Sword buys Headspace; payers covering 165 million pledge ACCESS payment model</title><link>https://physicianintheloop.org/posts/2026-09-17/</link><guid isPermaLink="true">https://physicianintheloop.org/posts/2026-09-17/</guid><pubDate>Thu, 17 Sep 2026 07:00:00 -0600</pubDate><dc:creator>Ryan Gillum, MD</dc:creator><description>Chris Klomp, nominated to be deputy secretary of the Department of Health and Human Services (HHS), told senators Wednesday that Medicare&#x27;s WISeR AI prior-authorization pilot &quot;must be done appropriately, or it should not expand.&quot; The statement came at his confirmation hearing before the Senate...</description><content:encoded><![CDATA[<div class="section-label">THE SHORT READ</div><div class="intro"><p>Chris Klomp, nominated to be deputy secretary of the Department of Health and Human Services (HHS), told senators Wednesday that Medicare&#x27;s WISeR AI prior-authorization pilot &quot;must be done appropriately, or it should not expand.&quot; The statement came at <a href="https://www.murray.senate.gov/at-help-hearing-murray-grills-trump-nominees-on-ai-denying-seniors-health-care-abortion-bans-killing-women/" target="_blank" rel="noopener">his confirmation hearing before the Senate Health, Education, Labor and Pensions Committee</a>, where Sen. Patty Murray questioned him on the program&#x27;s records. Murray said the Washington state contractor denied more requests than it approved in its first three months, that the vendors are paid on the number of claims they deny, and that a Centers for Medicare &amp; Medicaid Services (CMS) Office of the Actuary memo said participants would have an incentive to deny as many claims as possible. Klomp first said his understanding was that contractors are not paid by denial volume, then said there are penalties for inappropriate denials and that the CMS Innovation Center monitors them, before making the statement on expansion. Murray said she will do everything she can to stop the planned expansion into oncology. If confirmed, Klomp would run the department day to day. The hearing came one week after the Electronic Frontier Foundation (EFF) <a href="https://www.eff.org/deeplinks/2026/09/new-records-reveal-problems-medicares-ai-prior-authorization-experiment" target="_blank" rel="noopener">reported on about 1,000 pages of WISeR records</a>.</p><p>In Connecticut, Comptroller Sean Scanlon <a href="https://osc.ct.gov/wp-content/uploads/2026/09/2026.09.16-Comptroller-AI-Healthcare-Policy.pdf" target="_blank" rel="noopener">announced five rules for the state employee and municipal health plans</a>: no adverse determination may be made solely by an AI; AI may not be the sole basis for downcoding or a payment reduction; AI&#x27;s material involvement in a benefit decision must be disclosed; members&#x27; data may not be used to train other models; and AI systems must undergo validation audits, with governance procedures disclosed to his office. The policy covers more than 270,000 people, and Scanlon said he will ask the legislature to extend it to every state-regulated plan in 2027. Downcoding was the practice two dozen revenue cycle leaders <a href="https://www.beckershospitalreview.com/finance/revenue-cycle-management/the-payers-are-winning-revenue-cycle-leaders-big-threats-for-the-future/" target="_blank" rel="noopener">told Becker&#x27;s Hospital Review on Tuesday</a> they fear most.</p><p>Elsewhere, Sword Health agreed to buy Headspace for about one-tenth of Headspace&#x27;s 2021 valuation. European Commission President Ursula von der Leyen, a physician, told the European Parliament that AI must empower doctors and not replace them, and promised a health initiative in November. Researchers at Harvard&#x27;s Chan School and the University of Pennsylvania counted how often the company that built a digital health tool also ran its trial, and how that affected the results. In California, <a href="https://calmatters.digitaldemocracy.org/bills/ca_202520260ab1979" target="_blank" rel="noopener">AB 1979</a> awaited action with 13 days left, and the Food and Drug Administration (FDA) <a href="https://www.fda.gov/news-events/fda-newsroom/press-announcements" target="_blank" rel="noopener">press page</a> listed nothing new since Tuesday&#x27;s drug-development pilot.</p></div><div class="section-label details-label">THE DETAILS</div><ul class="items"><li class="item"><div class="cat">Regulation  <span class="when">Sept 16, 2026</span></div><div class="item-title"><a href="https://www.murray.senate.gov/at-help-hearing-murray-grills-trump-nominees-on-ai-denying-seniors-health-care-abortion-bans-killing-women/" target="_blank" rel="noopener">Klomp tells Senate HELP hearing WISeR &quot;must be done appropriately, or it should not expand&quot;; Murray vows to fight oncology expansion</a></div><div class="item-body">Murray&#x27;s office posted the exchange from the Sept. 16 hearing. Murray said the Washington state contractor denied more requests than it approved in the first three months, that the vendors &quot;are paid based on the number of claims they deny,&quot; and that a CMS Office of the Actuary memo warned participants would have an incentive to deny as many claims as possible. Klomp first said his understanding was that the contractors are &quot;not&quot; paid on denial volume; he then acknowledged financial penalties for inappropriate denials, said the Innovation Center monitors performance and agreed the program must be done appropriately or should not expand. Murray called the program one that &quot;is really hurting patients&quot; and said she would fight the planned expansion to oncology, which matches a June 2025 Innovation Center plan, contained in the records EFF reported on, that contemplated cancer treatment, MRI and air ambulance. Klomp, as deputy secretary, would oversee the program.</div><div class="item-src">Sources: <a href="https://www.murray.senate.gov/at-help-hearing-murray-grills-trump-nominees-on-ai-denying-seniors-health-care-abortion-bans-killing-women/" target="_blank" rel="noopener">Senator Patty Murray (HELP hearing)</a>, <a href="https://www.statnews.com/2026/09/16/senators-highlight-chris-klomp-power-rfk-jr-second-in-command/" target="_blank" rel="noopener">STAT (hearing coverage)</a>, <a href="https://www.eff.org/deeplinks/2026/09/new-records-reveal-problems-medicares-ai-prior-authorization-experiment" target="_blank" rel="noopener">Electronic Frontier Foundation (WISeR records)</a>, <a href="https://www.statnews.com/2026/09/15/medicare-wiser-ai-prior-authorization-pilot-rushed-launch-delayed-care/" target="_blank" rel="noopener">STAT (WISeR records)</a></div></li><li class="item"><div class="cat">Regulation  <span class="when">Sept 16, 2026</span></div><div class="item-title"><a href="https://osc.ct.gov/wp-content/uploads/2026/09/2026.09.16-Comptroller-AI-Healthcare-Policy.pdf" target="_blank" rel="noopener">Connecticut comptroller bars AI-only denials and downcoding for 270,000 on state health plans, seeks statewide rule in 2027</a></div><div class="item-body">The Sept. 16 policy applies to the State Employee Health Plan and the Partnership Plan for municipal workers, with Anthem on medical, Cigna on dental, Aetna on retiree Medicare Advantage and Caremark on pharmacy, according to CT Mirror, which reported a Jan. 1, 2027, effective date. Under the five rules, no adverse determination may be &quot;made solely by an AI system&quot; and each must be reviewed by a human; carriers may not use AI as the sole basis to &quot;downcode claims, reduce provider payments, or alter billing codes without human review&quot;; disclosure is required when AI is materially assisting with or recommending a benefit or service; member data may not be used to train or develop other models; and AI systems must be validated for accuracy, consistency and fairness, with governance procedures disclosed to the comptroller. Scanlon said that &quot;you and your doctor should make your health care decisions, not artificial intelligence,&quot; and that he plans to recommend the legislature extend the protections next session to all state-regulated plans, which CT Mirror said cover about 220,000 residents. Alabama, Georgia and Minnesota require human review of payer utilization decisions by statute; Connecticut&#x27;s requirement comes through the plans&#x27; own rules for their carriers.</div><div class="item-src">Sources: <a href="https://osc.ct.gov/wp-content/uploads/2026/09/2026.09.16-Comptroller-AI-Healthcare-Policy.pdf" target="_blank" rel="noopener">Connecticut Office of the State Comptroller (policy)</a>, <a href="https://www.einpresswire.com/article/942782981/comptroller-sean-scanlon-announces-new-protections-against-artificial-intelligence-on-state-health-plans" target="_blank" rel="noopener">Comptroller&#x27;s announcement</a>, <a href="https://ctmirror.org/2026/09/16/ct-artificial-intelligence-regulations-health-insurance/" target="_blank" rel="noopener">CT Mirror</a>, <a href="https://www.wshu.org/connecticut-news/2026-09-16/ct-regulates-ai-state-health-care" target="_blank" rel="noopener">WSHU</a>, <a href="https://www.manatt.com/insights/newsletters/health-highlights/manatt-health-health-ai-policy-tracker" target="_blank" rel="noopener">Manatt Health (state law tracker)</a></div></li><li class="item"><div class="cat">Money  <span class="when">Sept 16, 2026</span></div><div class="item-title"><a href="https://www.globenewswire.com/news-release/2026/09/16/3363038/0/en/sword-to-acquire-headspace-bringing-ai-care-to-the-world-s-most-trusted-mental-health-brand.html" target="_blank" rel="noopener">Sword Health to buy Headspace for a reported $300 million in cash, about one-tenth of Headspace&#x27;s 2021 valuation</a></div><div class="item-body">Sword Health said in a Sept. 16 release that the deal is all cash and should close at the start of the fourth quarter; the release does not give a price, and the figure of up to $300 million comes from the trade press. Headspace was valued at $3 billion when it merged with Ginger in 2021. Sword, a virtual physical-therapy company valued at about $4 billion, said it has treated more than 1 million people with what it calls AI Care and serves 2,500 organizations; Headspace brings a 15,000-provider network, 84 peer-reviewed studies and 20,000 employer clients, according to the companies&#x27; own figures. Headspace&#x27;s chief executive described the target model as one that &quot;brings in a human clinician when it is needed.&quot; Headspace is also an accepted participant in Medicare&#x27;s ACCESS behavioral health track, which pays for technology-enabled care of depression and anxiety based on outcomes.</div><div class="item-src">Sources: <a href="https://www.globenewswire.com/news-release/2026/09/16/3363038/0/en/sword-to-acquire-headspace-bringing-ai-care-to-the-world-s-most-trusted-mental-health-brand.html" target="_blank" rel="noopener">Sword Health release</a>, <a href="https://www.fiercehealthcare.com/digital-health/sword-health-acquire-headspace-all-cash-deal" target="_blank" rel="noopener">Fierce Healthcare</a>, <a href="https://hitconsultant.net/2026/09/16/sword-acquires-headspace-300m-all-cash-ai-care-mental-health-platform/" target="_blank" rel="noopener">HIT Consultant</a>, <a href="https://www.cms.gov/priorities/innovation/access-model-accepted-applicants" target="_blank" rel="noopener">CMS (ACCESS participants)</a></div></li><li class="item"><div class="cat">Evidence  <span class="when">Sept 17, 2026</span></div><div class="item-title"><a href="https://www.nature.com/articles/s41746-026-03234-9" target="_blank" rel="noopener">Review finds developers involved in 73% of 229 digital health trials, with higher odds of a positive result</a></div><div class="item-body">A group from the Harvard T.H. Chan School of Public Health and the University of Pennsylvania published the rapid review in npj Digital Medicine on Sept. 17, covering 229 randomized trials from 29 systematic reviews in nutrition, maternal health, mental health and sleep from 2013 to 2025. Developers took part in 73% of the trials. Developer-involved trials had 2.47 times the odds of being preregistered and, when weighted by sample size, higher odds of reporting a statistically significant result, an odds ratio of 1.23 with a confidence interval of 1.16 to 1.31. The authors called for independent efficacy trials, more transparent reporting and regulatory oversight. The domains studied were behavioral rather than diagnostic; the review did not cover ambient scribes or diagnostic agents.</div><div class="item-src">Source: <a href="https://www.nature.com/articles/s41746-026-03234-9" target="_blank" rel="noopener">npj Digital Medicine</a></div></li><li class="item"><div class="cat">Regulation  <span class="when">Sept 16, 2026</span></div><div class="item-title"><a href="https://www.eeas.europa.eu/delegations/turkiye/2026-state-union-address-president-von-der-leyen_en" target="_blank" rel="noopener">Von der Leyen tells European Parliament &quot;AI needs to empower our doctors. Not to replace them,&quot; promises health AI initiative for November</a></div><div class="item-body">In her Sept. 16 State of the Union address, the European Commission president, who trained as a physician, said she wants her doctor to have instant AI access to the data needed for the best diagnostic or treatment choice and does not want her doctor to be a robot, and she cited AI-supported mammography as the example of what Europe should scale. She named health as one of five sectors for industrial AI initiatives the Commission will announce in November, with no money or rules attached yet. Health Commissioner Olivér Várhelyi wants to use Europe&#x27;s data and research infrastructure to speed adoption, Euronews reported. In Washington, officials <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/federal-officials-weigh-how-medicare-could-pay-for-ai-doctors/" target="_blank" rel="noopener">have discussed paying company-run AI physicians 60% to 80% of the human rate</a>, and the CMS administrator <a href="https://www.statnews.com/2026/09/10/health-news-oz-says-ai-based-avatars-can-help-rural-communities-despite-skepticism/" target="_blank" rel="noopener">has promoted AI avatars for rural care</a>.</div><div class="item-src">Sources: <a href="https://www.eeas.europa.eu/delegations/turkiye/2026-state-union-address-president-von-der-leyen_en" target="_blank" rel="noopener">European Commission (State of the Union 2026 text)</a>, <a href="https://www.euronews.com/health/2026/09/16/ai-in-health-must-be-done-in-a-european-way-without-replacing-doctors-von-der-leyen-says" target="_blank" rel="noopener">Euronews</a></div></li><li class="item"><div class="cat">Regulation  <span class="when">Sept 16, 2026</span></div><div class="item-title"><a href="https://www.cms.gov/newsroom/press-releases/cms-adds-medicare-options-help-people-manage-substance-use-disorder-heart-failure-other-common" target="_blank" rel="noopener">Payers covering 165 million Americans pledge to adopt ACCESS outcomes-based payment structure; CMS offers Medicaid a toolkit</a></div><div class="item-body">In its ACCESS announcement Tuesday, CMS said three out of four people with Medicare now qualify for at least one track, that 18 clinical and patient societies back the model and that &quot;major health payers representing 165 million Americans with Medicare Advantage, Medicaid, and private health insurance plans&quot; have pledged to adopt an outcomes-based payment structure aligned to it. Fierce Healthcare counted 17 payers and reported that CMS is publishing sample provider agreements, standardized billing codes and reporting infrastructure so Medicaid programs can adopt the model, quoting Jacob Shiff, the Innovation Center&#x27;s chief AI officer, as saying it was designed &quot;from day one&quot; for impact beyond Original Medicare. Heart failure, chronic obstructive pulmonary disease (COPD), substance use and nicotine dependence join the model in spring 2027. The structure that lets Headspace, Noom and WeightWatchers bill Medicare for chronic-condition management would extend to commercial and Medicaid contracts under the pledges, with payment tied to outcomes such as blood pressure and A1c.</div><div class="item-src">Sources: <a href="https://www.cms.gov/newsroom/press-releases/cms-adds-medicare-options-help-people-manage-substance-use-disorder-heart-failure-other-common" target="_blank" rel="noopener">CMS</a>, <a href="https://www.fiercehealthcare.com/regulatory/cms-extends-access-model-more-chronic-conditions-cms-officials-eye-expansion-medicaid" target="_blank" rel="noopener">Fierce Healthcare</a>, <a href="https://www.cms.gov/priorities/innovation/access-model-accepted-applicants" target="_blank" rel="noopener">CMS (ACCESS participants)</a></div></li></ul>]]></content:encoded></item>
<item><title>Diagnostic agent keeps 49.4% of cases at 98.9% accuracy; House hears Medicare pay bills; 22 states fund remote monitoring as CMS moves to bar vendor staffing; Abridge adds pre-bill review</title><link>https://physicianintheloop.org/posts/2026-09-16/</link><guid isPermaLink="true">https://physicianintheloop.org/posts/2026-09-16/</guid><pubDate>Wed, 16 Sep 2026 07:00:00 -0600</pubDate><dc:creator>Ryan Gillum, MD</dc:creator><description>A diagnostic agent that scores its own consistency kept 49.4% of cases at 98.9% accuracy and routed the rest to a physician, a European group reported in Nature Medicine, dated Sept. 15.</description><content:encoded><![CDATA[<div class="section-label">THE SHORT READ</div><div class="intro"><p>A diagnostic agent that scores its own consistency kept 49.4% of cases at 98.9% accuracy and routed the rest to a physician, a European group reported <a href="https://www.nature.com/articles/s41591-026-04609-x" target="_blank" rel="noopener">in Nature Medicine, dated Sept. 15</a>. The group, led by Jakob Nikolas Kather, built an agent that takes a history, examines the patient, orders labs and imaging, and commits to a diagnosis, all on open-weight models running inside the hospital firewall. The agent reached about 90% on a seven-disease emergency task, close to a cloud GPT-5.2 baseline, the authors said. When the researchers ran the agent five times on each case, its agreement with itself predicted whether it was right better than any other measure they tested; the 49.4% of cases the agent kept were those that cleared a strict threshold on that score, and the other half went to a human. The paper appeared one week after the Advanced Research Projects Agency for Health <a href="https://www.statnews.com/2026/09/09/arpa-h-advocate-program-autonomous-ai-bots-for-heart-failure/" target="_blank" rel="noopener">funded heart-failure agents</a> built on exception-based oversight, the design in which the machine keeps the cases it is sure of and hands the rest to a physician.</p><p>Chris Klomp, the deputy secretary nominee, <a href="https://www.npr.org/2026/09/16/nx-s1-5968780/trump-rfk-jr-health-nomination-surgeon-general" target="_blank" rel="noopener">appeared before the Senate Finance Committee on Tuesday</a> and the Senate Health, Education, Labor and Pensions Committee on Wednesday morning, and coverage focused on vaccines and measles, not WISeR or AI. The House Energy and Commerce Health Subcommittee held a legislative hearing Tuesday on the Patients First Act and three other physician-payment bills. Sacramento has said nothing about AB 1979 with 14 days left on the clock. The Food and Drug Administration&#x27;s only press release announced <a href="https://www.fda.gov/news-events/press-announcements/fda-launches-expedited-ind-pilot-begins-accepting-applications" target="_blank" rel="noopener">an expedited investigational new drug (IND) pilot</a>. No major funding round or deal crossed the wire.</p><p>In other developments, states are putting rural transformation money into remote patient monitoring while the Centers for Medicare &amp; Medicaid Services (CMS) proposes to bar the vendor-staffed version of the service; Abridge is selling a pre-bill review tool built on its ambient notes to coding departments; and 24 revenue cycle leaders told Becker&#x27;s Hospital Review that their chief concern is payer automation that denies claims faster than they can answer, not autonomous coding.</p></div><div class="section-label details-label">THE DETAILS</div><ul class="items"><li class="item"><div class="cat">Evidence  <span class="when">Sept 15, 2026</span></div><div class="item-title"><a href="https://www.nature.com/articles/s41591-026-04609-x" target="_blank" rel="noopener">Open-weight diagnostic agent run inside the hospital is 98.9% accurate on the 49.4% of cases it keeps, selected by agreement across five runs</a></div><div class="item-body">Kather&#x27;s group tested a fully autonomous agent that interviews the patient, examines, orders tests and diagnoses on 551 MIMIC-IV cases across seven acute conditions (appendicitis, cholecystitis, diverticulitis, pancreatitis, pneumonia, pulmonary embolism and urinary infection), 2,400 abdominal cases and 990 published multispecialty cases. Open-weight models hosted on premises (Qwen, GLM and GPT-OSS), which keep patient data inside the hospital, reached 90.0% on the seven-disease task and 83.8% on the four-disease task, near a cloud GPT-5.2 baseline, the authors said. Agreement across five repeated runs separated right from wrong answers with an AUC of 0.86, and at a consistency threshold of 0.90 the agent retained 49.4% of cases at 98.9% accuracy; blinded physician review of 181 cases agreed with the automated grading 92.3% of the time. The authors listed the limitations: retrospective simulation only, text only, one institution&#x27;s data, lower accuracy in older patients and roughly five times the compute. Under that design, the remaining cases, those on which the agent&#x27;s repeated runs disagreed, are routed to a person.</div><div class="item-src">Source: <a href="https://www.nature.com/articles/s41591-026-04609-x" target="_blank" rel="noopener">Nature Medicine</a></div></li><li class="item"><div class="cat">Regulation  <span class="when">Sept 15, 2026</span></div><div class="item-title"><a href="https://energycommerce.house.gov/posts/chairmen-guthrie-and-griffith-announce-legislative-hearing-to-address-medicare-provider-payment-challenges-and-bolster-cybersecurity-in-american-health-care" target="_blank" rel="noopener">House Health Subcommittee hears Patients First Act, which would give Medicare physician pay a permanent inflation update, and three other bills</a></div><div class="item-body">The Energy and Commerce Health Subcommittee took testimony Sept. 15 on 17 bills, including H.R. 9693, the Patients First Act, sponsored by three physician members of the House, John Joyce, Kim Schrier and Greg Murphy. The bill would tie the fee schedule to the Medicare Economic Index minus one point (minus half a point for alternative payment model participants), raise the budget-neutrality trigger from $20 million to $57.64 million in 2028 and replace the Merit-based Incentive Payment System (MIPS) over five years; the Provider Reimbursement Stability Act, H.R. 8163, addresses only the budget-neutrality change. Medicare physician payment has fallen about 33% against practice-cost inflation since 2001, according to the American Medical Association (AMA). A legislative hearing is not a markup, and no vote is scheduled. The conversion factor is set to drop another 1.19% on Jan. 1.</div><div class="item-src">Sources: <a href="https://energycommerce.house.gov/posts/chairmen-guthrie-and-griffith-announce-legislative-hearing-to-address-medicare-provider-payment-challenges-and-bolster-cybersecurity-in-american-health-care" target="_blank" rel="noopener">House Energy and Commerce Committee</a>, <a href="https://www.ama-assn.org/press-center/ama-press-releases/ama-state-societies-back-patients-first-act" target="_blank" rel="noopener">AMA</a></div></li><li class="item"><div class="cat">Regulation  <span class="when">Sept 14, 2026</span></div><div class="item-title"><a href="https://www.fiercehealthcare.com/health-tech/states-are-betting-millions-remote-patient-monitoring-providers-tech-groups-say" target="_blank" rel="noopener">22 states put about $240 million of rural transformation money into remote monitoring as CMS proposes to bar vendor-staffed monitoring Jan. 1</a></div><div class="item-body">The Alliance for Connected Care counts 22 states with roughly $240 million in remote patient monitoring (RPM) funding and 35 states with more than $2.4 billion in broader remote-care technology money, all drawn from the $50 billion Rural Health Transformation Program, Fierce Healthcare reported. The proposed 2027 fee schedule would limit remote physiologic and therapeutic monitoring to clinical staff employed by the billing practice, a change the American Telemedicine Association said would make the service unworkable for small practices; CMS received nearly 40,000 comments. Medicare RPM payments rose 31% to $536 million in 2024 and reached about 1 million beneficiaries. The final rule is expected around Nov. 1. Practices that bill the RPM codes 99454 and 99457 through a vendor would fall under the proposed staffing limit.</div><div class="item-src">Source: <a href="https://www.fiercehealthcare.com/health-tech/states-are-betting-millions-remote-patient-monitoring-providers-tech-groups-say" target="_blank" rel="noopener">Fierce Healthcare</a></div></li><li class="item"><div class="cat">Deployment  <span class="when">Sept 14, 2026</span></div><div class="item-title"><a href="https://www.fiercehealthcare.com/ai-and-machine-learning/abridge-expands-revenue-cycle-ai-powered-pre-bill-claim-review" target="_blank" rel="noopener">Abridge expands into revenue cycle with a pre-bill tool that checks coded DRGs against what its ambient scribe recorded</a></div><div class="item-body">The pre-bill review product compares coded diagnoses and diagnosis-related groups (DRGs) with the clinical documentation before a claim goes out and surfaces supporting evidence for clinical documentation integrity and coding teams, without changing the note or the codes, Fierce Healthcare reported. Reid Health in Indiana is the named early customer. Abridge said it works with 300 large health systems and handles more than 100 million conversations a year; both figures are the company&#x27;s own. Shiv Rao said health systems &quot;aren&#x27;t reimbursed for the care they deliver. They&#x27;re reimbursed for the care they document that they delivered.&quot; The tool draws on the same ambient recording that produces the clinical note.</div><div class="item-src">Source: <a href="https://www.fiercehealthcare.com/ai-and-machine-learning/abridge-expands-revenue-cycle-ai-powered-pre-bill-claim-review" target="_blank" rel="noopener">Fierce Healthcare</a></div></li><li class="item"><div class="cat">Workforce  <span class="when">Sept 15, 2026</span></div><div class="item-title"><a href="https://www.beckershospitalreview.com/finance/revenue-cycle-management/the-payers-are-winning-revenue-cycle-leaders-big-threats-for-the-future/" target="_blank" rel="noopener">24 revenue cycle leaders tell Becker&#x27;s the threat is payer automation denying claims faster than providers can respond, not autonomous coding</a></div><div class="item-body">Becker&#x27;s asked revenue cycle executives at Cleveland Clinic, Stanford, UC Davis, Rush, AdventHealth, Moffitt, the University of Kansas and 17 other organizations what worries them, and the consistent answer was payer AI. One said payers now review 100% of claims with automation while most health systems still manually sample a small fraction; another said payers can find reasons to challenge reimbursement far faster than providers can answer; several described payment being quietly reduced rather than denied. A companion piece the day before quoted UW Medicine and Springhill Medical Center leaders on restructuring teams, &quot;replacing, say, 12 positions with four&quot; at about the same total pay. A separate Becker&#x27;s tally lists 10 health systems that cut IT and coding roles this year, from Stanford&#x27;s 95 to Wellstar&#x27;s 761, none of which named AI in its announcement.</div><div class="item-src">Source: <a href="https://www.beckershospitalreview.com/finance/revenue-cycle-management/the-payers-are-winning-revenue-cycle-leaders-big-threats-for-the-future/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review</a></div></li><li class="item"><div class="cat">Deployment  <span class="when">Sept 15, 2026</span></div><div class="item-title"><a href="https://www.fiercehealthcare.com/ai-and-machine-learning/ge-healthcare-launches-ai-driven-operations-system" target="_blank" rel="noopener">GE HealthCare operations system, live at Duke and Queen&#x27;s in Honolulu, forecasts bed pressure 72 hours out and assigns estimated discharge days</a></div><div class="item-body">CareIntellect for Operations runs two proprietary models, Pressure Forecast and Estimated Day of Discharge, on bed, staffing and patient data to give capacity managers a three-day view, GE HealthCare said. The system is live at Duke and Queen&#x27;s in Honolulu. Duke&#x27;s patient-flow lead said it lets her team move faster from analysis to action. The company has published no accuracy or outcome figures.</div><div class="item-src">Source: <a href="https://www.fiercehealthcare.com/ai-and-machine-learning/ge-healthcare-launches-ai-driven-operations-system" target="_blank" rel="noopener">Fierce Healthcare</a></div></li></ul>]]></content:encoded></item>
<item><title>Physician in the Loop launches with a September 2026 baseline on AI in physician work</title><link>https://physicianintheloop.org/posts/2026-09-16-launch/</link><guid isPermaLink="true">https://physicianintheloop.org/posts/2026-09-16-launch/</guid><pubDate>Wed, 16 Sep 2026 07:00:00 -0600</pubDate><dc:creator>Ryan Gillum, MD</dc:creator><description>Physician in the Loop launched this week with a baseline of where artificial intelligence stood in physician work as of September 2026, drawn from the regulatory record and published evidence. The longer analysis is in the &quot;Where things stand&quot; section of the site.</description><content:encoded><![CDATA[<div class="section-label">THE SHORT READ</div><div class="intro"><p>Physician in the Loop launched this week with a baseline of where artificial intelligence stood in physician work as of September 2026, drawn from the regulatory record and published evidence. The longer analysis is in the &quot;Where things stand&quot; section of the site.</p><p>Federal officials have discussed a new Medicare payment category for AI clinical software and rates for company-operated AI physicians at 60% to 80% of the human fee, The New York Times reported Sept. 14; nothing has been proposed. In trials published this year in Nature and Science, models matched or outperformed physicians on text-based tasks; the Nature paper called its system &quot;not ready for real-world translation.&quot; No published trial has shown an AI model improving patient outcomes on its own. Twenty-two states have enacted 33 health-AI laws this year, according to Manatt Health&#x27;s tracker, and no state has authorized an AI to practice medicine.</p></div><div class="section-label details-label">THE DETAILS</div><ul class="items"><li class="item"><div class="cat">Regulation  <span class="when">Sept 14, 2026</span></div><div class="item-title"><a href="https://www.nytimes.com/2026/09/14/health/ai-doctors-medicare-fda.html" target="_blank" rel="noopener">Federal officials discuss paying company-run &quot;AI physicians&quot; 60% to 80% of the human fee, New York Times reports</a></div><div class="item-body">The New York Times reported Sept. 14 that federal officials have discussed a new Medicare payment category for AI clinical software, with rates for AI physicians operated by technology companies at 60% to 80% of the human fee. Nothing has been proposed. Dr. John Whyte, chief executive of the American Medical Association (AMA), said autonomous models are not ready.</div><div class="item-src">Sources: <a href="https://www.nytimes.com/2026/09/14/health/ai-doctors-medicare-fda.html" target="_blank" rel="noopener">The New York Times</a>, <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/federal-officials-weigh-how-medicare-could-pay-for-ai-doctors/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review</a>, <a href="https://www.statnews.com/2026/09/09/ai-medicine-doctors-replacement-debate-ama-ceo/" target="_blank" rel="noopener">STAT (John Whyte)</a></div></li><li class="item"><div class="cat">Regulation  <span class="when">Aug 18, 2026</span></div><div class="item-title"><a href="https://www.fda.gov/news-events/press-announcements/fda-seeks-public-feedback-inform-regulatory-approach-generative-ai-enabled-medical-devices" target="_blank" rel="noopener">FDA proposes &quot;competency-based&quot; premarket evaluation for generative-AI devices; docket open until Oct. 19</a></div><div class="item-body">The Food and Drug Administration (FDA) issued a discussion paper Aug. 18 proposing a two-axis risk framework and &quot;competency-based&quot; premarket evaluation for generative-AI devices, with postmarket monitoring. The agency&#x27;s digital health chief said formal guidance is coming. The docket is open until Oct. 19.</div><div class="item-src">Source: <a href="https://www.fda.gov/news-events/press-announcements/fda-seeks-public-feedback-inform-regulatory-approach-generative-ai-enabled-medical-devices" target="_blank" rel="noopener">FDA</a></div></li><li class="item"><div class="cat">Regulation  <span class="when">Sept 15, 2026</span></div><div class="item-title"><a href="https://www.cms.gov/newsroom/press-releases/cms-adds-medicare-options-help-people-manage-substance-use-disorder-heart-failure-other-common" target="_blank" rel="noopener">Medicare&#x27;s ACCESS model reaches about 160 organizations as uncleared AI tools treat beneficiaries under enforcement discretion</a></div><div class="item-body">Medicare&#x27;s ACCESS model, which launched in July and pays for technology-enabled care of hypertension, diabetes, musculoskeletal pain, depression and anxiety, now has about 160 participating organizations and adds heart failure, COPD, substance use and tobacco next spring, the Centers for Medicare &amp; Medicaid Services (CMS) said. Paired with the FDA&#x27;s TEMPO pilot, tools that have never been cleared, including a voice-AI therapy program, are treating beneficiaries under enforcement discretion in exchange for data. The CMS administrator described the program as access to &quot;AI-enabled technologies.&quot;</div><div class="item-src">Sources: <a href="https://www.cms.gov/newsroom/press-releases/cms-adds-medicare-options-help-people-manage-substance-use-disorder-heart-failure-other-common" target="_blank" rel="noopener">CMS</a>, <a href="https://www.cms.gov/priorities/innovation/access-model-accepted-applicants" target="_blank" rel="noopener">CMS (ACCESS participants)</a>, <a href="https://www.fda.gov/medical-devices/digital-health-center-excellence/participants-selected-tempo-digital-health-devices-pilot" target="_blank" rel="noopener">FDA (TEMPO participants)</a>, <a href="https://www.statnews.com/2026/09/03/tempo-fda-pilor-generative-ai-medical-device-regulation/" target="_blank" rel="noopener">STAT</a>, <a href="https://www.fiercehealthcare.com/digital-health/limbic-selected-fda-tempo-track-outcomes-ai-therapy-medicare" target="_blank" rel="noopener">Fierce Healthcare</a></div></li><li class="item"><div class="cat">Deployment  <span class="when">Sept 9, 2026</span></div><div class="item-title"><a href="https://www.statnews.com/2026/09/09/arpa-h-advocate-program-autonomous-ai-bots-for-heart-failure/" target="_blank" rel="noopener">ARPA-H pays $62.7 million for heart-failure agents that titrate therapy inside physician-prescribed plans</a></div><div class="item-body">The Advanced Research Projects Agency for Health (ARPA-H) is paying $62.7 million to Kaiser, Duke, Stanford, Tempus, UpDoc and Atman to build agents that assess symptoms, titrate guideline-directed therapy and order labs inside a physician-prescribed plan, with mandatory escalation and FDA authorization packages due within two years, STAT and Fierce Healthcare reported. Kaiser will run a trial of about 2,500 patients. A health system chief medical information officer described the approach as the shift from human-in-the-loop to exception-based oversight.</div><div class="item-src">Sources: <a href="https://www.statnews.com/2026/09/09/arpa-h-advocate-program-autonomous-ai-bots-for-heart-failure/" target="_blank" rel="noopener">STAT</a>, <a href="https://www.fiercehealthcare.com/ai-and-machine-learning/arpa-h-launches-63m-cardiovascular-ai-initiative-naming-updoc-tempus-ai" target="_blank" rel="noopener">Fierce Healthcare</a>, <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/who-will-carry-the-liability-6-health-system-leaders-on-autonomous-ais-biggest-question/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review</a></div></li><li class="item"><div class="cat">Regulation  <span class="when">Sept 15, 2026</span></div><div class="item-title"><a href="https://www.statnews.com/2026/09/15/medicare-wiser-ai-prior-authorization-pilot-rushed-launch-delayed-care/" target="_blank" rel="noopener">WISeR records show two vendors denied more than 20,000 Medicare requests in three months, with vendors paid per denial</a></div><div class="item-body">About 1,000 pages of records obtained by the Electronic Frontier Foundation (EFF) show that one vendor in Medicare&#x27;s WISeR prior-authorization pilot told CMS before launch it would auto-affirm requests because it was not ready, two vendors denied more than 20,000 requests in three months, vendors are paid per denial and one request sat for 83 days. A Senate vote to end the program failed 46-50 in July.</div><div class="item-src">Sources: <a href="https://www.statnews.com/2026/09/15/medicare-wiser-ai-prior-authorization-pilot-rushed-launch-delayed-care/" target="_blank" rel="noopener">STAT</a>, <a href="https://www.fiercehealthcare.com/regulatory/delays-tech-failures-abound-cms-wiser-ai-prior-auth-pilot-documents-show" target="_blank" rel="noopener">Fierce Healthcare</a>, <a href="https://www.eff.org/deeplinks/2026/09/new-records-reveal-problems-medicares-ai-prior-authorization-experiment" target="_blank" rel="noopener">Electronic Frontier Foundation</a>, <a href="https://www.senate.gov/legislative/LIS/roll_call_votes/vote1192/vote_119_2_00199.htm" target="_blank" rel="noopener">U.S. Senate roll call</a></div></li><li class="item"><div class="cat">Deployment  <span class="when">Jul 30, 2026</span></div><div class="item-title"><a href="https://www.prnewswire.com/news-releases/akido-announces-the-first-ai-native-health-system-in-the-us-302838924.html" target="_blank" rel="noopener">Akido Labs calls itself the first AI-native health system, with 1 million patients and 100 clinics</a></div><div class="item-body">Akido Labs describes itself as the first AI-native health system, with 1 million patients, 100 clinics, medical assistants running AI-guided visits with a physician approving remotely and, by its own figure, four to five times the patients per physician. No outcomes trial has been published. Hims &amp; Hers said AI answers 80% of the questions from weight-loss patients on its new care platform. Doctronic&#x27;s Utah refill sandbox remains at 100% physician sign-off after seven months.</div><div class="item-src">Sources: <a href="https://www.prnewswire.com/news-releases/akido-announces-the-first-ai-native-health-system-in-the-us-302838924.html" target="_blank" rel="noopener">Akido Labs</a>, <a href="https://www.investing.com/news/transcripts/earnings-call-transcript-hims--hers-q2-2026-revenue-beats-eps-misses-93CH-4850552" target="_blank" rel="noopener">Hims &amp; Hers Q2 call transcript</a>, <a href="https://commerce.utah.gov/ai/regulatory-relief/authorized-ai-pilots/doctronic/" target="_blank" rel="noopener">Utah Office of AI Policy</a>, <a href="https://www.fiercehealthcare.com/ai-and-machine-learning/deep-dive-doctronics-ai-prescription-refill-pilot-program-utah" target="_blank" rel="noopener">Fierce Healthcare</a></div></li><li class="item"><div class="cat">Evidence  <span class="when">Jun 17, 2026</span></div><div class="item-title"><a href="https://www.nature.com/articles/s41586-026-10764-5" target="_blank" rel="noopener">In Nature trial, Google&#x27;s AMIE management plans rated appropriate 95% to 98% of the time versus 72% to 81% for physicians</a></div><div class="item-body">Google&#x27;s AMIE trial in Nature was a randomized, blinded virtual OSCE with 100 multi-visit cases and 21 primary care physicians; the model&#x27;s management plans were rated appropriate 95% to 98% of the time versus 72% to 81% for the physicians. The same paper describes the system as &quot;not ready for real-world translation,&quot; citing a text-only format with patient actors and no pharmacist or order entry. In April, Science published a Harvard study in which an OpenAI model matched attending physicians on emergency department triage and admission decisions using real records. Stanford researchers have repeatedly found that a physician using the model does no better than the model alone, and that the gap closes only when the physician commits to an assessment first and then compares.</div><div class="item-src">Sources: <a href="https://www.nature.com/articles/s41586-026-10764-5" target="_blank" rel="noopener">Nature</a>, <a href="https://www.science.org/doi/10.1126/science.adz4433" target="_blank" rel="noopener">Science</a>, <a href="https://jamanetwork.com/journals/jamanetworkopen/fullarticle/2825395" target="_blank" rel="noopener">JAMA Network Open</a>, <a href="https://www.nature.com/articles/s41746-026-02545-1" target="_blank" rel="noopener">npj Digital Medicine</a></div></li><li class="item"><div class="cat">Deployment  <span class="when">Aug 20, 2026</span></div><div class="item-title"><a href="https://www.advisory.com/daily-briefing/2026/08/26/epic-ugm-ab-oi-ec" target="_blank" rel="noopener">Epic ships Ergo Visit, live at Ochsner since Aug. 3, drafting notes and orders for physician review</a></div><div class="item-body">At its August user group meeting, Epic shipped Ergo Visit, live at Ochsner since Aug. 3, in which the assistant drafts the note and the orders for the physician to review; an Agent Factory for building no-code agents, widely available in 2027; and a generative model trained on 310 million patients&#x27; records to predict readmission and stroke risk. Oracle extended its clinical agent to nurses this week, and OpenAI&#x27;s ChatGPT for Healthcare now reads Epic charts at UCSF, Healthcare Dive and Fierce Healthcare reported.</div><div class="item-src">Sources: <a href="https://www.advisory.com/daily-briefing/2026/08/26/epic-ugm-ab-oi-ec" target="_blank" rel="noopener">Advisory Board</a>, <a href="https://www.epic.com/epic/post/ochsner-health-first-to-use-epics-ergo-visit/" target="_blank" rel="noopener">Epic</a>, <a href="https://www.healthcaredive.com/news/oracle-targets-nurses-with-latest-ai-tool/830279/" target="_blank" rel="noopener">Healthcare Dive</a>, <a href="https://www.fiercehealthcare.com/ai-and-machine-learning/chatgpt-healthcare-unveils-new-integrations-epic-ehr-public-health-data" target="_blank" rel="noopener">Fierce Healthcare</a></div></li><li class="item"><div class="cat">Workforce  <span class="when">Aug 28, 2026</span></div><div class="item-title"><a href="https://www.doximity.com/reports/physician-compensation-report/2026" target="_blank" rel="noopener">Doximity reports physician pay up 2%, 85% seeing shortage effects, 20% facing AI-driven productivity targets</a></div><div class="item-body">Doximity&#x27;s August compensation report put overall physician pay up 2%, with family medicine at $325,040 and emergency medicine at $423,723; 85% of physicians reported shortage effects and 46% were considering early retirement. It also found 20% already face higher productivity targets because of AI and 42% expect them, while 24% expect AI to raise their pay. The Medical Group Management Association (MGMA) found compensation rising in all 23 specialties it tracks while work RVUs fell in 16 of them.</div><div class="item-src">Sources: <a href="https://www.doximity.com/reports/physician-compensation-report/2026" target="_blank" rel="noopener">Doximity</a>, <a href="https://www.healthcaredive.com/news/physicians-say-they-should-benefit-financially-from-ais-time-savings-doximity/829046/" target="_blank" rel="noopener">Healthcare Dive</a>, <a href="https://www.mgma.com/2026-provider-compensation" target="_blank" rel="noopener">MGMA</a></div></li><li class="item"><div class="cat">Regulation  <span class="when">Aug 12, 2026</span></div><div class="item-title"><a href="https://www.manatt.com/insights/newsletters/health-highlights/manatt-health-health-ai-policy-tracker" target="_blank" rel="noopener">Manatt tracker counts 33 health-AI laws in 22 states through July; no state has authorized AI to practice medicine</a></div><div class="item-body">Manatt Health&#x27;s tracker counts 33 health-AI laws in 22 states through July. The laws typically require AI disclosure to patients, licensed accountability for clinical use, human review of payer denials and a bar on chatbots posing as therapists. Colorado&#x27;s HB 1177 took effect Aug. 12 and requires licensed oversight of any clinical AI. California&#x27;s AB 1979, which would bar AI from performing licensed work or directing unlicensed staff, sits on the governor&#x27;s desk until Sept. 30. No state has authorized an AI to practice medicine, and of 20 liability bills introduced, none passed.</div><div class="item-src">Source: <a href="https://www.manatt.com/insights/newsletters/health-highlights/manatt-health-health-ai-policy-tracker" target="_blank" rel="noopener">Manatt Health</a></div></li><li class="item"><div class="cat">Money  <span class="when">Sept 15, 2026</span></div><div class="item-title"><a href="https://www.fiercehealthcare.com/health-tech/waystar-weighs-strategic-options-according-media-reports-analysts-see-ma-appeal" target="_blank" rel="noopener">OpenEvidence valued at $12 billion, Function Health raises $450 million, Oura files for IPO with $1.4 billion in trailing revenue</a></div><div class="item-body">OpenEvidence, free to clinicians and ad-supported, is valued at $12 billion; in July it considered, then shelved, a round at a $20 billion valuation. Function Health, which sells a $365-a-year lab bundle, raised another $450 million in July. Oura filed to go public in September with $1.4 billion in trailing revenue. Doximity&#x27;s shares rose by roughly two-thirds after it said its AI scribe users grew tenfold. Waystar, which sells billing software, hired bankers to explore a sale after investors concluded AI would displace its business.</div><div class="item-src">Sources: <a href="https://www.businesswire.com/news/home/20260121029132/en/OpenEvidence-Raises-$250-Million-to-Build-Medical-Superintelligence-for-Doctors" target="_blank" rel="noopener">OpenEvidence release</a>, <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/openevidence-weighs-200m-funding-round-at-20b-valuation-report/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review</a>, <a href="https://www.prnewswire.com/news-releases/function-secures-450-million-growth-financing-from-general-catalysts-customer-value-fund-cvf-302838766.html" target="_blank" rel="noopener">Function Health release</a>, <a href="https://www.mobihealthnews.com/news/function-health-secures-450m-growth-financing" target="_blank" rel="noopener">MobiHealthNews</a>, <a href="https://www.sec.gov/Archives/edgar/data/2133022/000119312526381855/0001193125-26-381855-index.htm" target="_blank" rel="noopener">SEC (Oura S-1)</a>, <a href="https://ca.investing.com/news/stock-market-news/why-is-doximity-stock-skyrocketing-66-today-93CH-4785759" target="_blank" rel="noopener">Investing.com</a>, <a href="https://www.fool.com/earnings/call-transcripts/2026/08/13/doximity-docs-q1-2027-earnings-call-transcript/" target="_blank" rel="noopener">Doximity earnings call</a>, <a href="https://www.fiercehealthcare.com/health-tech/waystar-weighs-strategic-options-according-media-reports-analysts-see-ma-appeal" target="_blank" rel="noopener">Fierce Healthcare</a>, <a href="https://www.marketscreener.com/news/healthcare-software-firm-waystar-explores-options-including-sale-sources-say-ce785bddda88f726" target="_blank" rel="noopener">Reuters (via MarketScreener)</a></div></li><li class="item"><div class="cat">Incident  <span class="when">Sept 3, 2026</span></div><div class="item-title"><a href="https://www.healthcaredive.com/news/why-ai-scribes-malpractice-risk/829541/" target="_blank" rel="noopener">First lawsuit over ChatGPT medical advice pleads unlicensed practice; carriers describe AI scribe failure modes</a></div><div class="item-body">Winters v. OpenAI, filed July 23, alleges the chatbot told a man with unstable blood pressure to stay in his recliner and he developed a pulmonary embolism; the complaint pleads unlicensed practice of medicine, CBS News reported. No malpractice suit over an AI scribe has been filed, Healthcare Dive reported, but malpractice carriers are already describing the failure modes: hallucinated template text, omitted nonverbal findings and the decay of review rigor once the clinician trusts the draft.</div><div class="item-src">Sources: <a href="https://www.healthcaredive.com/news/why-ai-scribes-malpractice-risk/829541/" target="_blank" rel="noopener">Healthcare Dive</a>, <a href="https://www.cbsnews.com/news/chatgpt-dangerous-medical-advice-openai-lawsuit/" target="_blank" rel="noopener">CBS News</a>, <a href="https://www.courthousenews.com/wp-content/uploads/2026/07/winters-v-open-ai-complaint.pdf" target="_blank" rel="noopener">Winters v. OpenAI complaint</a></div></li></ul>]]></content:encoded></item>
<item><title>California awaits governor&#x27;s action on AI practice bills; WISeR vendor under corrective plan; 72% of health systems report unsanctioned AI; Conifer cuts 1,037 billing jobs</title><link>https://physicianintheloop.org/posts/2026-09-15/</link><guid isPermaLink="true">https://physicianintheloop.org/posts/2026-09-15/</guid><pubDate>Tue, 15 Sep 2026 07:00:00 -0600</pubDate><dc:creator>Ryan Gillum, MD</dc:creator><description>California&#x27;s governor has until Sept. 30 to act on Assembly Bill 1979, which would bar artificial intelligence (AI) from independently performing work that requires a licensed professional or directing unlicensed staff to do it.</description><content:encoded><![CDATA[<div class="section-label">THE SHORT READ</div><div class="intro"><p>California&#x27;s governor has until Sept. 30 to act on Assembly Bill 1979, which would bar artificial intelligence (AI) from independently performing work that requires a licensed professional or directing unlicensed staff to do it. The bill applies to health facilities, clinics and physician offices; under its terms, an AI system could not direct medical assistants or other unlicensed personnel to carry out licensed duties. Its companion, AB 2575, would protect clinicians who override an AI system and bar developers from blaming those clinicians when the system fails.</p><p>The WISeR records, the Waystar sale process and the ACCESS expansion had been covered in the baseline report. The fuller WISeR records show one vendor under a corrective action plan and a Centers for Medicare &amp; Medicaid Services (CMS) plan that considered extending AI prior authorization to MRI, cancer treatment and air ambulance, according to Fierce Healthcare and the Electronic Frontier Foundation (EFF). An Imprivata survey of 250 health system leaders found 72% have AI tools deployed without formal IT approval. Tenet&#x27;s billing subsidiary is cutting 1,037 jobs, Healthcare Dive reported, and Tenet&#x27;s chief executive has pointed to AI and offshoring. Waystar has hired Evercore to explore a sale, Reuters reported.</p></div><div class="section-label details-label">THE DETAILS</div><ul class="items"><li class="item"><div class="cat">Regulation  <span class="when">Sept 10, 2026</span></div><div class="item-title"><a href="https://www.nationalnursesunited.org/press/nurses-celebrate-final-passage-of-landmark-ai-bills-urge-gov-newsom-to-sign" target="_blank" rel="noopener">California AB 1979, barring AI from independently performing licensed clinical work, and companion AB 2575 await governor&#x27;s action by Sept. 30</a></div><div class="item-body">AB 1979 (Bonta) would prohibit health facilities, clinics and physician offices from allowing AI to independently perform clinical functions that require a licensed professional or to direct unlicensed personnel to carry out licensed duties; AI could inform a decision if a licensed professional keeps final authority, and documentation, routine communications and supervised education are exempt. It would also make direct-to-consumer health chatbots that handle medical records subject to California&#x27;s medical confidentiality law. AB 2575 (Ortega) would protect clinicians who override unsafe AI output and bar developers from shifting blame for AI-caused harm onto the workers using it. Both bills cleared the Legislature by Aug. 31 with the California Nurses Association as sponsor and hospitals, insurers and technology firms opposed; enforcement would run through the licensing boards, effective Jan. 1, 2027, if signed.</div><div class="item-src">Sources: <a href="https://www.nationalnursesunited.org/press/nurses-celebrate-final-passage-of-landmark-ai-bills-urge-gov-newsom-to-sign" target="_blank" rel="noopener">National Nurses United</a>, <a href="https://www.paubox.com/blog/california-bill-would-bar-ai-from-replacing-licensed-clinical-judgment" target="_blank" rel="noopener">Paubox</a>, <a href="https://www.kalw.org/bay-area-news/2026-09-03/this-bill-could-put-limits-on-ai-in-healthcare" target="_blank" rel="noopener">KALW</a>, <a href="https://legiscan.com/CA/bill/AB1979/2025" target="_blank" rel="noopener">AB 1979 (LegiScan)</a>, <a href="https://legiscan.com/CA/bill/AB2575/2025" target="_blank" rel="noopener">AB 2575 (LegiScan)</a></div></li><li class="item"><div class="cat">Regulation  <span class="when">Sept 15, 2026</span></div><div class="item-title"><a href="https://www.fiercehealthcare.com/regulatory/delays-tech-failures-abound-cms-wiser-ai-prior-auth-pilot-documents-show" target="_blank" rel="noopener">WISeR records show Virtix under corrective action plan and a CMS plan that considered AI prior auth for MRI, cancer treatment and air ambulance</a></div><div class="item-body">Roughly 1,000 pages of WISeR records, won by EFF in a Freedom of Information Act suit, show Virtix denied more requests than it approved in its first three months and was required to submit a corrective action plan, Fierce Healthcare reported, adding detail to earlier STAT coverage. The records also show that Innovaccer told CMS before launch it needed more time and was still working backlogs in early April, that vendors and Medicare contractors miscommunicated and mis-categorized requests, and that low quality scores cut vendor pay by 5% to 10%. EFF&#x27;s write-up said the Innovation Center&#x27;s June 2025 investment plan considered adding services that need urgent authorization, including air ambulance, cancer treatment, MRI and medications without public coverage criteria. The CMS WISeR page, updated Sept. 10, lists the original service categories and no expansion. CMS has not responded to the records.</div><div class="item-src">Sources: <a href="https://www.fiercehealthcare.com/regulatory/delays-tech-failures-abound-cms-wiser-ai-prior-auth-pilot-documents-show" target="_blank" rel="noopener">Fierce Healthcare</a>, <a href="https://www.eff.org/deeplinks/2026/09/new-records-reveal-problems-medicares-ai-prior-authorization-experiment" target="_blank" rel="noopener">Electronic Frontier Foundation</a></div></li><li class="item"><div class="cat">Deployment  <span class="when">Sept 15, 2026</span></div><div class="item-title"><a href="https://www.globenewswire.com/news-release/2026/09/15/3362174/0/en/new-imprivata-research-finds-72-of-healthcare-organizations-have-ai-tools-or-agents-deployed-without-formal-it-approval.html" target="_blank" rel="noopener">Imprivata survey: 72% of 250 health system leaders report AI tools or agents deployed without formal IT approval; 28% have agentic AI in production</a></div><div class="item-body">The Sept. 15 Imprivata survey of 250 health system leaders responsible for identity security or AI strategy found 83% have AI across multiple departments, 28% have agentic AI in production and 44% are piloting it. It also found 79% expect agents to change clinical workflows significantly, 88% expect agents to act with some autonomy and 17% consider their current identity controls adequate. Imprivata sells identity management software, and the figures are the company&#x27;s own. Advocate Health and Penn Medicine leaders described the same pattern of unapproved AI use at Becker&#x27;s Health IT conference the same day.</div><div class="item-src">Sources: <a href="https://www.globenewswire.com/news-release/2026/09/15/3362174/0/en/new-imprivata-research-finds-72-of-healthcare-organizations-have-ai-tools-or-agents-deployed-without-formal-it-approval.html" target="_blank" rel="noopener">GlobeNewswire</a>, <a href="https://www.fiercehealthcare.com/health-tech/imprivata-survey-finds-most-health-systems-deploy-some-ai-tools-without-formal-it" target="_blank" rel="noopener">Fierce Healthcare</a></div></li><li class="item"><div class="cat">Deployment  <span class="when">Sept 14, 2026</span></div><div class="item-title"><a href="https://www.beckershospitalreview.com/finance/advocate-health-penn-medicine-leaders-on-ais-real-payoff-and-real-hurdles-4-notes/" target="_blank" rel="noopener">Advocate Health pauses nursing ambient rollout; CIO says AI raises total health care costs; Penn Medicine cites about 30% pharmacy prior auth gains</a></div><div class="item-body">Advocate Health paused an ambient voice documentation rollout for nurses after finding that little inpatient nursing care is done by voice, Dr. Bobbie Byrne, the system&#x27;s chief information officer, said at Becker&#x27;s Health IT conference in Chicago; nurses chart in structured flowsheets, not narrative notes. Byrne also said AI raises the cost of health care in total, not for any one organization. Dr. Mitchell Schnall of Penn Medicine cited roughly 30% efficiency gains in pharmacy prior authorizations and said jobs change and the system commits to retraining rather than guaranteeing roles. Mayo Clinic said its Abridge-built nursing tool has made documentation latency an obsolete metric. Mercy, FMOL, Northeast Georgia, Mount Sinai Miami Beach, Jefferson and Northwell are running or planning nursing ambient documentation, and Mercy reported 22% less flowsheet time per shift on three pilot units.</div><div class="item-src">Source: <a href="https://www.beckershospitalreview.com/finance/advocate-health-penn-medicine-leaders-on-ais-real-payoff-and-real-hurdles-4-notes/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review</a></div></li><li class="item"><div class="cat">Deployment  <span class="when">Sept 15, 2026</span></div><div class="item-title"><a href="https://www.prnewswire.com/news-releases/knowtex-launches-the-frontier-ai-lab-for-healthcare-bringing-research-grade-clinical-ai-to-health-systems-to-maximize-intelligence-per-patient-encounter-302878575.html" target="_blank" rel="noopener">Knowtex opens health care AI lab, citing its own figures of 79 VA medical centers, 7,000 clinicians and 450,000 documentation hours saved</a></div><div class="item-body">Knowtex, which won a $15 million Department of Veterans Affairs (VA) contract in October 2025 after the VA&#x27;s ambient-scribe tech sprint evaluated more than 150 tools, said it is live at 79 VA medical centers across 10 Veterans Integrated Service Networks within six months, with 88% sustained clinician adoption, 450,000 documentation hours saved and more than 300 customer organizations. The new lab will build specialty-specific models and evaluation benchmarks, the company said. All figures are the company&#x27;s own. The VA is the largest single employer of physicians in the country.</div><div class="item-src">Sources: <a href="https://www.prnewswire.com/news-releases/knowtex-launches-the-frontier-ai-lab-for-healthcare-bringing-research-grade-clinical-ai-to-health-systems-to-maximize-intelligence-per-patient-encounter-302878575.html" target="_blank" rel="noopener">PR Newswire</a>, <a href="https://www.fiercehealthcare.com/ai-and-machine-learning/knowtex-launches-frontier-healthcare-ai-lab" target="_blank" rel="noopener">Fierce Healthcare</a></div></li><li class="item"><div class="cat">Workforce  <span class="when">Sept 14, 2026</span></div><div class="item-title"><a href="https://www.healthcaredive.com/news/conifer-to-lay-off-over-1000-workers/830287/" target="_blank" rel="noopener">Tenet&#x27;s Conifer to cut 1,037 billing jobs by Nov. 2; WARN notice cites restructuring and technology initiatives, CEO has pointed to AI and offshoring</a></div><div class="item-body">Conifer Health Solutions, Tenet&#x27;s revenue-cycle subsidiary with more than 600 clients, will lay off 1,037 mostly remote workers effective Nov. 2, 2026, Healthcare Dive reported. The stated trigger is CommonSpirit&#x27;s exit from its 24% stake and its service contract, which ends Oct. 30. Tenet&#x27;s chief executive has said AI and offshoring would lower Conifer&#x27;s costs, and the Worker Adjustment and Retraining Notification (WARN) filing cites restructuring and technology initiatives. The jobs are back-office, not clinical. No verified case of a U.S. health system cutting physician positions because of AI has been reported.</div><div class="item-src">Source: <a href="https://www.healthcaredive.com/news/conifer-to-lay-off-over-1000-workers/830287/" target="_blank" rel="noopener">Healthcare Dive</a></div></li><li class="item"><div class="cat">Evidence  <span class="when">Sept 11, 2026</span></div><div class="item-title"><a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/who-will-carry-the-liability-6-health-system-leaders-on-autonomous-ais-biggest-question/" target="_blank" rel="noopener">Seven health system leaders tell Becker&#x27;s autonomous AI needs narrow use cases, named accountability, escalation paths and developer liability</a></div><div class="item-body">Becker&#x27;s Hospital Review asked chief information officers and chief medical information officers at Cornell, Baptist Health, HSS, Premier Health, Christ Hospital, North Country Healthcare and Denver Health what the ADVOCATE agents of the Advanced Research Projects Agency for Health (ARPA-H) would need. Dr. Curtis Cole of Cornell said the agents will not succeed if the companies that build and oversee them have no liability. Joy Oh of Christ Hospital asked who is responsible when a supervisory agent misses an inappropriate recommendation, and Dr. Daniel Kortsch of Denver Health said the technology has been tested on curated cases, not safety-net populations. The consensus was narrow use cases, named accountability and escalation paths, not broad autonomy.</div><div class="item-src">Source: <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/who-will-carry-the-liability-6-health-system-leaders-on-autonomous-ais-biggest-question/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review</a></div></li><li class="item"><div class="cat">Incident  <span class="when">Sept 15, 2026</span></div><div class="item-title"><a href="https://www.globenewswire.com/news-release/2026/09/15/3362351/0/en/hims-investors-have-opportunity-to-lead-hims-hers-health-inc-securities-fraud-lawsuit-with-sbs-law.html" target="_blank" rel="noopener">Securities suit targets Hims &amp; Hers over health data sharing with ad platforms and treatment practices; class period Aug. 4, 2025, to July 29, 2026</a></div><div class="item-body">Plaintiffs&#x27; firms are soliciting lead plaintiffs, with a Nov. 2, 2026, deadline, for a securities suit alleging Hims &amp; Hers misled investors while providing customer health data to third-party advertising platforms and running treatment practices likely to draw regulatory scrutiny, SBS Law said in a notice on GlobeNewswire. Hims &amp; Hers is a publicly traded direct-to-consumer health company. The notice is a law firm solicitation, not a court ruling, and the complaint&#x27;s allegations have not been tested in court.</div><div class="item-src">Source: <a href="https://www.globenewswire.com/news-release/2026/09/15/3362351/0/en/hims-investors-have-opportunity-to-lead-hims-hers-health-inc-securities-fraud-lawsuit-with-sbs-law.html" target="_blank" rel="noopener">GlobeNewswire (SBS Law notice)</a></div></li><li class="item"><div class="cat">Money  <span class="when">Sept 15, 2026</span></div><div class="item-title"><a href="https://www.fiercehealthcare.com/health-tech/waystar-weighs-strategic-options-according-media-reports-analysts-see-ma-appeal" target="_blank" rel="noopener">Waystar hires Evercore to explore sale at about $4.8 billion; shares down 24% this year after Morgan Stanley AI disruption note</a></div><div class="item-body">Waystar, a revenue-cycle software company used by hospitals and physician groups for billing and claims, has retained Evercore to run a sale process that is at an early stage and could still stall, Reuters reported. Shares are down 24% this year after a July Morgan Stanley note argued AI could disrupt software companies. EQT holds 13% of the company, CPP Investments 10% and BlackRock 8%. Waystar went public at $20 a share in 2024 and peaked at $45 in 2025. The company has said AI drives 40% of its bookings.</div><div class="item-src">Sources: <a href="https://www.fiercehealthcare.com/health-tech/waystar-weighs-strategic-options-according-media-reports-analysts-see-ma-appeal" target="_blank" rel="noopener">Fierce Healthcare</a>, <a href="https://www.marketscreener.com/news/healthcare-software-firm-waystar-explores-options-including-sale-sources-say-ce785bddda88f726" target="_blank" rel="noopener">Reuters (via MarketScreener)</a></div></li></ul>]]></content:encoded></item>
<item><title>Priced before proven</title><link>https://physicianintheloop.org/letters/2026-09-14/</link><guid isPermaLink="true">https://physicianintheloop.org/letters/2026-09-14/</guid><pubDate>Mon, 14 Sep 2026 07:00:00 -0600</pubDate><dc:creator>Physician in the Loop</dc:creator><description>Medicare is deciding what to pay for AI care before anyone knows how well it works. Doctors should fight over the terms, not the technology.</description><content:encoded><![CDATA[<p><img src="https://physicianintheloop.org/images/letters/2026-09-14.jpg?v=207e95aeb9" alt="A closed doctor&#x27;s bag, its clasp locked, with a blank amber price tag hanging from its handle." width="1200" height="630"></p><div class=""><p>Federal officials have discussed paying company-run &quot;AI physicians&quot; as much as 60 to 80 percent of what human doctors earn for the same service, the New York Times reported on September 14. The officials are still exploring the idea, and John Whyte, the chief executive of the American Medical Association, said that models designed to provide care on their own are not ready for widespread use.</p><p>Both caveats are fair, and the report still matters more than any benchmark published this year, because in American medicine nobody is replaced until somebody is paid. The rate is only talk, but the contracts that decide how machines are paid to look after patients are already being written, before anyone knows how well the machines work. Those terms will shape what the technology does to medicine far more than its accuracy will, and doctors should spend their energy fighting over them.</p><p>The most important contract is ACCESS, a Medicare program that pays companies using technology to manage chronic disease for measurable improvements, such as a patient&#x27;s blood pressure brought under control, rather than for each service. On September 15 Medicare said it would add heart failure, chronic lung disease, substance use disorders and tobacco cessation next spring, that three in four people on Medicare qualify for at least one of its tracks, and that insurers covering 165 million Americans had pledged to adopt a similar way of paying for results. Two days later Counsel Health, which pairs AI with its own physicians, said it would join in early 2027, treating high blood pressure, obesity, high cholesterol and prediabetes at no out-of-pocket cost, with Oura, the maker of a smart ring, promoting the offer to its own paying members.</p><p>Medicare&#x27;s other experiment shows what such terms do. WISeR, a pilot in six states, pays private companies that use AI to review requests for prior authorization, the advance approval a patient needs before some treatments. Records obtained by the Electronic Frontier Foundation show that the companies are paid for the requests they deny, that poor quality scores trim that pay only slightly, and that one company had to file a corrective plan after denying more requests than it approved. Pay for denials and you get denials. At a Senate hearing on September 16 Chris Klomp, the nominee for deputy secretary of health and human services, was asked whether the companies make more money when they deny care. &quot;My understanding is no,&quot; he said, though he later agreed that the program &quot;must be done appropriately, or it should not expand.&quot;</p><p>The evidence the vendors sell on is thinner than their pitch. A review in npj Digital Medicine of 229 randomized trials of digital health tools found the developer involved in nearly three-quarters of them, and those trials were somewhat more likely to report a statistically significant result. Tools already running in hospitals can disappoint when outsiders test them. A study in JAMA Network Open ran Epic&#x27;s end-of-life score, which estimates who will die within a year, on hospital patients at two large health systems, and found that it ranked them reasonably well but overstated the risk of death among sicker patients and grew less reliable with age.</p><p>The machines those contracts will buy are taking shape. A diagnostic agent described in Nature Medicine, running on open models inside a hospital&#x27;s own computers, worked through each emergency case repeatedly and kept only those on which its answers agreed; it was right about 99 times in 100 on the half it kept, and passed the rest to a doctor. Under such designs the cases that reach a physician are the hard ones by construction. Yet <a href="https://www.healthcaredive.com/news/physicians-say-they-should-benefit-financially-from-ais-time-savings-doximity/829046/" target="_blank" rel="noopener">a fifth of doctors in a Doximity survey</a> say they already face higher expectations for productivity because of AI, and <a href="https://www.beckershospitalreview.com/digital-health/health-systems-cutting-it-jobs-coding-roles/" target="_blank" rel="noopener">a list of this year&#x27;s job cuts at health systems</a>, in IT, coding and other back-office work, does not mention AI at all. Replacement is arriving as a harder day&#x27;s work rather than a layoff notice, and nobody announces it.</p><p>The strongest objection is that paying for results beats paying for visits. Medicare has bought visits for decades and got visits; a company paid for lower blood pressure has every reason to lower it, eighteen clinical and patient societies back ACCESS, and a patient treated at no charge is not obviously worse off. All of that may be true, and all of it depends on the terms: who measures the result, who sees the data, and what happens to the patients whose numbers do not move. WISeR shows how quickly a payment formula becomes a vendor&#x27;s behavior.</p><p>The terms can be written the other way. On September 16 Sean Scanlon, Connecticut&#x27;s comptroller, set rules for the state&#x27;s health plans for public employees, which cover more than 270,000 people: no AI may deny care or cut a doctor&#x27;s payment on its own, insurers and providers must disclose when AI materially assists with or recommends a member&#x27;s benefits or care, and members&#x27; data may not be used to train other AI models. He will ask the legislature next year to extend the rules to every plan the state regulates.</p><p>Medicare should publish how often each WISeR company denies care and how often appeals overturn those denials, and should demand trials run by someone other than the vendor before it pays for care by machine. Physicians in the six WISeR states should quote Mr. Klomp&#x27;s words back to Medicare in their appeals. Other states, and employers and hospitals that insure their own staff, should adopt Mr. Scanlon&#x27;s rules. Anyone setting productivity targets for doctors who supervise AI should count the hard cases the machines send back, and every doctor handed a vendor&#x27;s study should ask who ran it.</p><p>The machines have been priced before they have been proven. Doctors cannot reverse that order, but they can still fight over the terms.</p></div><div class="section-label">SOURCE MATERIAL</div><ul class="items"><li class="item"><div class="cat"></div><div class="item-title"><a href="https://www.nytimes.com/2026/09/14/health/ai-doctors-medicare-fda.html" target="_blank" rel="noopener">Medicare officials have discussed paying company-run &quot;AI physicians&quot; as much as 60 to 80 percent of what human physicians earn</a></div><div class="item-body">The New York Times reported on September 14 that federal officials are working on a new Medicare payment category that could reimburse companies for AI software that supports care or diagnosis, and have discussed whether AI physicians operated by technology companies and startups should be paid as much as 60 to 80 percent of what human physicians earn for the same service. John Whyte, the AMA&#x27;s chief executive, said &quot;models designed to independently provide patient care are not ready for widespread use.&quot; A health department spokesperson said the department was &quot;taking a responsible, evidence-based approach to AI.&quot;</div><div class="item-src">Sources: <a href="https://www.nytimes.com/2026/09/14/health/ai-doctors-medicare-fda.html" target="_blank" rel="noopener">The New York Times</a>, <a href="https://www.beckershospitalreview.com/healthcare-information-technology/ai/federal-officials-weigh-how-medicare-could-pay-for-ai-doctors/" target="_blank" rel="noopener">Becker&#x27;s Hospital Review</a></div></li><li class="item"><div class="cat"></div><div class="item-title"><a href="https://www.cms.gov/newsroom/press-releases/cms-adds-medicare-options-help-people-manage-substance-use-disorder-heart-failure-other-common" target="_blank" rel="noopener">CMS adds heart failure, COPD, substance use and tobacco to ACCESS and says payers covering 165 million people will adopt aligned payment</a></div><div class="item-body">The September 15 release adds heart failure, chronic obstructive pulmonary disease, substance use disorders, tobacco cessation and expanded musculoskeletal care, with the new tracks starting in spring 2027. CMS says three out of four people with Medicare qualify for at least one ACCESS track, that payers covering 165 million Americans in Medicare Advantage, Medicaid and private plans have pledged to adopt an outcomes-based payment structure aligned to ACCESS, and that 18 clinical and patient societies support the effort. ACCESS ties payment to measurable improvements in patients&#x27; health rather than to individual services.</div><div class="item-src">Sources: <a href="https://www.cms.gov/newsroom/press-releases/cms-adds-medicare-options-help-people-manage-substance-use-disorder-heart-failure-other-common" target="_blank" rel="noopener">CMS</a>, <a href="https://www.cms.gov/priorities/innovation/access-model-accepted-applicants" target="_blank" rel="noopener">CMS (ACCESS participants)</a></div></li><li class="item"><div class="cat"></div><div class="item-title"><a href="https://www.businesswire.com/news/home/20260917750816/en/Counsel-Health-Joins-ACCESS-Model-to-Bring-AI-Native-Chronic-Care-to-Medicare-Beneficiaries" target="_blank" rel="noopener">Counsel Health will join ACCESS in early 2027, with Oura promoting its free chronic care to Oura&#x27;s 5 million paid members</a></div><div class="item-body">Counsel&#x27;s September 17 announcement says it will deliver AI-native care for hypertension, obesity, hyperlipidemia and prediabetes at no out-of-pocket cost to eligible Medicare beneficiaries under ACCESS, starting in early 2027, with Oura as its technology and marketing partner. Fierce Healthcare reports that the Oura app will promote the program to Oura&#x27;s 5 million paid members. Counsel says members who saw one of its physicians rated their care 4.6 out of 5.</div><div class="item-src">Sources: <a href="https://www.businesswire.com/news/home/20260917750816/en/Counsel-Health-Joins-ACCESS-Model-to-Bring-AI-Native-Chronic-Care-to-Medicare-Beneficiaries" target="_blank" rel="noopener">Counsel Health release</a>, <a href="https://www.fiercehealthcare.com/health-tech/oura-counsel-health-cms-access-model" target="_blank" rel="noopener">Fierce Healthcare</a></div></li><li class="item"><div class="cat"></div><div class="item-title"><a href="https://www.eff.org/deeplinks/2026/09/new-records-reveal-problems-medicares-ai-prior-authorization-experiment" target="_blank" rel="noopener">WISeR records show vendors paid for the requests they deny and an 83-day wait; the nominee for HHS deputy secretary says the pilot &quot;must be done appropriately, or it should not expand&quot;</a></div><div class="item-body">About 1,000 pages of CMS records obtained by the Electronic Frontier Foundation show that WISeR vendors are paid for the prior authorization requests they deny (though not for denials reversed on appeal), that low quality scores reduce their payments by only 5 to 10 percent, that Virtix was required to submit a corrective action plan after denying more requests than it approved in its first three months, and that one request went unanswered for 83 days. At a September 16 HELP Committee hearing, Senator Patty Murray asked Chris Klomp, nominated as deputy secretary of HHS, whether the contractors make more money if they deny care; he answered &quot;My understanding is no,&quot; and later said the program &quot;must be done appropriately, or it should not expand.&quot; Ms. Murray said CMS plans to expand the pilot to oncology and that she would do everything she could to stop it. The pilot runs in Arizona, New Jersey, Ohio, Oklahoma, Texas and Washington.</div><div class="item-src">Sources: <a href="https://www.eff.org/deeplinks/2026/09/new-records-reveal-problems-medicares-ai-prior-authorization-experiment" target="_blank" rel="noopener">Electronic Frontier Foundation (WISeR records)</a>, <a href="https://www.murray.senate.gov/at-help-hearing-murray-grills-trump-nominees-on-ai-denying-seniors-health-care-abortion-bans-killing-women/" target="_blank" rel="noopener">Senator Patty Murray (HELP hearing)</a>, <a href="https://www.statnews.com/2026/09/15/medicare-wiser-ai-prior-authorization-pilot-rushed-launch-delayed-care/" target="_blank" rel="noopener">STAT</a>, <a href="https://www.fiercehealthcare.com/regulatory/delays-tech-failures-abound-cms-wiser-ai-prior-auth-pilot-documents-show" target="_blank" rel="noopener">Fierce Healthcare</a></div></li><li class="item"><div class="cat"></div><div class="item-title"><a href="https://osc.ct.gov/wp-content/uploads/2026/09/2026.09.16-Comptroller-AI-Healthcare-Policy.pdf" target="_blank" rel="noopener">Connecticut&#x27;s comptroller bars AI-only denials and AI-only payment cuts for more than 270,000 people on the state&#x27;s public-employee health plans</a></div><div class="item-body">Sean Scanlon&#x27;s September 16 policy for the State Employee Health Plan and the Partnership Plan for municipal and other public-sector employees says no adverse determination may be made solely by an AI system; carriers may not use AI as the sole basis to downcode claims, reduce provider payments or alter billing codes without human review; member data may not be used to train other AI models; carriers and providers must disclose when AI is materially assisting with or recommending a benefit or health service to a member; and carriers must disclose their AI governance and audit procedures. The CT Mirror reports that the rules take effect January 1, 2027, and that Mr. Scanlon will recommend in January that lawmakers require all state-regulated plans to follow the same policies.</div><div class="item-src">Sources: <a href="https://osc.ct.gov/wp-content/uploads/2026/09/2026.09.16-Comptroller-AI-Healthcare-Policy.pdf" target="_blank" rel="noopener">Connecticut Office of the State Comptroller</a>, <a href="https://ctmirror.org/2026/09/16/ct-artificial-intelligence-regulations-health-insurance/" target="_blank" rel="noopener">CT Mirror</a></div></li><li class="item"><div class="cat"></div><div class="item-title"><a href="https://www.nature.com/articles/s41746-026-03234-9" target="_blank" rel="noopener">In 229 randomized trials of digital health tools, the developer was involved 73 percent of the time, with higher odds of a significant result</a></div><div class="item-body">A rapid review in npj Digital Medicine by researchers at the Harvard T.H. Chan School of Public Health and the University of Pennsylvania, published September 17, covered 229 trials from 29 systematic reviews; 73 percent had direct developer involvement. Weighted by sample size, developer-involved trials had higher odds of reporting statistically significant results (odds ratio 1.23, 95 percent confidence interval 1.16 to 1.31).</div><div class="item-src">Source: <a href="https://www.nature.com/articles/s41746-026-03234-9" target="_blank" rel="noopener">npj Digital Medicine</a></div></li><li class="item"><div class="cat"></div><div class="item-title"><a href="https://jamanetwork.com/journals/jamanetworkopen/fullarticle/2853919" target="_blank" rel="noopener">Epic&#x27;s End-of-Life Care Index ranks patients well but overstates the risk of death for sicker patients in a test of 287,106 hospital encounters</a></div><div class="item-body">A study in JAMA Network Open ran Epic&#x27;s one-year mortality model on 154,063 adult hospital encounters at Trinity Health and 133,043 at Kaiser Permanente Southern California. Discrimination was moderate to high (C statistic 0.76 and 0.81), but calibration was poor in both systems, with the model overpredicting mortality among higher-risk patients, and performance worsened with age (C statistic 0.69 and 0.73 in patients 75 and older).</div><div class="item-src">Sources: <a href="https://jamanetwork.com/journals/jamanetworkopen/fullarticle/2853919" target="_blank" rel="noopener">JAMA Network Open</a>, <a href="https://www.medrxiv.org/content/10.64898/2026.01.02.26343350v1" target="_blank" rel="noopener">medRxiv (preprint)</a></div></li><li class="item"><div class="cat"></div><div class="item-title"><a href="https://www.nature.com/articles/s41591-026-04609-x" target="_blank" rel="noopener">An on-premise diagnostic agent in Nature Medicine kept 49.4 percent of cases at 98.9 percent accuracy and deferred the rest to clinicians</a></div><div class="item-body">Running open-weight models entirely inside the institution, the agent reached 90.0 percent accuracy on 551 emergency cases across seven acute conditions drawn from MIMIC-IV. Each case was run five times; at a consistency threshold of 0.90 the agent kept 49.4 percent of cases at 98.9 percent accuracy and deferred the rest to clinician review. The authors note the evaluation was retrospective, limited to text and based on one institution&#x27;s data.</div><div class="item-src">Source: <a href="https://www.nature.com/articles/s41591-026-04609-x" target="_blank" rel="noopener">Nature Medicine</a></div></li></ul><div class=""><p>California&#x27;s governor has until <a href="https://www.nationalnursesunited.org/press/nurses-celebrate-final-passage-of-landmark-ai-bills-urge-gov-newsom-to-sign" target="_blank" rel="noopener">September 30</a> to sign or veto bills that would bar AI from performing licensed clinical work or directing unlicensed staff to do it and give clinicians a right to override AI, and has the <a href="https://www.transparencycoalition.ai/news/ai-legislative-update-september18-2026" target="_blank" rel="noopener">same deadline</a> for bills that would bar AI therapy without a licensed human and require bias monitoring of clinical decision support. The next ACCESS cohort starts on <a href="https://www.cms.gov/priorities/innovation/access-model-accepted-applicants" target="_blank" rel="noopener">October 1</a>, and Medicare open enrollment opens on <a href="https://www.medicare.gov/health-drug-plans/open-enrollment" target="_blank" rel="noopener">October 15</a>.</p><p>Comments on the FDA&#x27;s discussion paper on generative-AI medical devices are due <a href="https://www.fda.gov/news-events/press-announcements/fda-seeks-public-feedback-inform-regulatory-approach-generative-ai-enabled-medical-devices" target="_blank" rel="noopener">October 19</a>. The final 2027 Medicare physician fee schedule, including the rule on who may staff remote patient monitoring, is expected <a href="https://www.cms.gov/newsroom/fact-sheets/calendar-year-cy-2027-medicare-physician-fee-schedule-proposed-rule" target="_blank" rel="noopener">around November 1</a>.</p></div>]]></content:encoded></item>
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