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Hedgie
@HedgieMarkets
๐Ÿฆ” Making financial nonsense make sense, one prickly take at a time ๐Ÿฆ” | Weekly newsletter: | Not financial advice (I'm a Hedgehog)
๊ฐ€์ž… March 2025
41 ํŒ”๋กœ์ž‰ ์ค‘    70.9K ํŒฌ
๐Ÿฆ”If you want to see what the future of American healthcare looks like, read this. A venture capital firm bought one of the biggest hospitals in Akron, Ohio, converted it from nonprofit to for-profit, and is now using it as a "test kitchen" for AI products made by companies that same firm invested in. General Catalyst paid $515 million for Summa Health, the county's largest employer with 8,500 workers, and just announced nine AI partnerships covering diagnostics, documentation, patient calls, claims processing, and a command center linking them all together. Every one of those companies is backed by General Catalyst. Workers lost eligibility for federal student loan forgiveness in the conversion. A doctor sued over it and the hospital called loan forgiveness "a private matter." My Take Most hospitals adopt AI because a vendor pitched them and the cost savings looked good on a slide. This hospital was purchased so a VC firm could test its own investments on a captive patient population, and that changes the incentive structure completely. The people deciding which tools to deploy profit when those tools get adopted elsewhere, so the incentive is to prove the portfolio works, not to improve patient care. Some of these tools are already live, like AI phone calls for surgery prep. Others are rolling out now. There's no federal law requiring hospitals to disclose AI use in clinical care, and Ohio doesn't have one either, so most patients walking into Summa won't know if AI flagged their scan, wrote their visit notes, or processed their claim. Nine companies, all backed by the same investor, handling patient data through one integrated command center, with no public disclosure about how that data moves between them. General Catalyst plans to roll whatever they learn at Summa out across more than two dozen partner health systems. Akron is the pilot, and the patients are the test group whether they signed up for it or not. Hedgie๐Ÿค—
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