Hospitals' use of artificial intelligence tools as they submit insurance claims led to an additional $942 million in healthcare spending over a two-year period, according to an analysis by the Blue Cross Blue Shield Association. The BCBSA analysis found 'a sharp increase in patients being documented as having complex conditions,' but argued there is a 'clear disconnect between [medical] coding and treatment,' as there's 'no evidence of corresponding change in care delivered.' The New York Times pointed the analysis as just the latest sign that AI is contributing to an increase in healthcare costs. While battles between hospitals and insurers over treatments and payments are nothing new, the NYT said the use of AI on both sides seems to be making it worse. Dr. Shiv Rao, founder of AI startup Abridge, acknowledged that the use of AI could lead to 'a horrible dystopic future nobody wants to live in,' with 'bots fighting bots, agents fighting agents.' But Rao said it might also reduce tensions and cut costs....
Editor's note: The following is the sixth profile in a series of articles about startup founders from non-technical backgrounds who have launched successful venture-backed companies. Read the previous interviews with MagicSchool AI founder Adeel Khan here, Trunk Tools founder Sarah Buchner here, Tabs founder Ali Hussain here, Craft founder Ilya Levtov here, and GC AI founder Cecilia Ziniti here. Abuzeid went on to co-found Incredible Health, a San Francisco-based healthcare hiring platform that has raised about $97.5 million from investors such as Andreessen Horowitz, Base10 Partners, Obvious Ventures, Precursor Ventures and NFX. It says its products are used by 1.5 million healthcare professionals ' including 1 in 2 U.S. nurses ' and 1,500 healthcare employers. Before launching Incredible Health in 2017, Abuzeid trained as a doctor, advised healthcare companies at Booz Allen and McKinsey, and worked as a product manager at a health tech startup, but didn't know how to code software. Originally from Sudan, Abuzeid was born and raised in Saudi Arabia and also lived in the United Arab Emirates. She moved to London at 18, where she completed her undergraduate education and medical school....
In October 2024, my co-founders and I set out to make our Ph.D. research useful in the real world. We had built AI models that could interpret medical images such as X-rays and CT scans across tens of thousands of potential diagnoses, generating comprehensive radiology reports that mirror how radiologists reason in clinical practice. At a time when AI in radiology was limited to flagging a handful of specific conditions, this marked a fundamental shift. Less than a year later, we faced a critical fork in the road: raise venture capital and continue independently, or accept an acquisition offer from Radiology Partners, the world's largest radiology practice. Clinical AI is highly regulated with long sales cycles and complex stakeholder dynamics, where structural advantages tend to harden market positions and compound over time. We decided that joining forces ' carefully structured to protect our velocity ' would dramatically improve the odds that we realize our mission of significantly increasing the world's access to healthcare....
The private equity firm is assessing exit routes for the Kuala Lumpur-based healthcare platform, with additional advisers expected to join if a public listing is pursued. However, deliberations remain at an early stage and TPG could still opt to retain the asset. Subscribe to our Newsletter to increase your edge. Don't worry about the news anymore, through our newsletter you'll receive weekly access to what is happening. Join 120,000 other PE professionals today....
