The news: Failing to generate savings for healthcare organization customers with its automation tools, embattled digital health startup Olive recently laid off about 35% of its workforce, Axios reported.
How we got here: Olive’s solutions were supposed to speed up time-consuming revenue cycle management (RCM) tasks for health systems and insurers such as prior authorizations and patient verifications. But it overpromised and underdelivered.
AI is still popular: Olive isn’t a symptom of a broad problem with healthcare AI. Prominent tech players and startups are aggressively developing and adding AI capabilities to help healthcare organizations solve a range of problems.
Key stat: Funding of digital health startups using AI reached $10 billion in 2021 and $3 billion through the 1H 2022. That compares with a three-year funding total of $6 billion from 2017-2019, per a Rock Health analysis conducted for Politico.
Will AI reclaim the tech buzz in 2023? Even outside healthcare, Big Tech is all-in on AI these days—even more so than the metaverse, which was all the rage in 2022.
The metaverse battle between major tech players last year might shift to an AI competition in 2023.
This article originally appeared in Insider Intelligence's Digital Health Briefing—a daily recap of top stories reshaping the healthcare industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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