Another day, another $30m round in health tech. On Monday Qventus raised that from Bessemer Partners, with Mayfield, Norwest and NY Presbyterian kicking in too. That brings their total to $43m in so far–not bad for a 75 person company that is in the somewhat obscure space of using AI to improve hospital operations. Qventus sucks in data and delivers operational suggestions to front line managers. Of course given that somewhere between $1-1.5 trillion goes through America’s hospitals each year, there’s huge potential for saving money. And given that most hospitals are being paid fixed cost per case, anything that can be done to improve throughput and increase productivity drops to the bottom line and is thus likely to meet interested buyers. I talked to CEO Mudit Garg about the problem, his company’s solution and what they were going to do next.
The Millimam company (aka MILLIMUM & ROBERTSON, long standing healthcare actuaries) estimates the following for the disruptive processes that lead to healthcare: socioeconomic 40%, health behaviors 30%, healthcare 20% and environment 10%. When 30% of health spending is the result of fundamental problems within the COMMON GOOD of each citizen’s community, how would AI reliably improve the efficiency of healthcare without onerous rationing? Answer, it won’t given the level of paradigm paralysis that has occurred within the co-dependent governance of our nation’s healthcare institutions.