3 Important Items in 5 Minutes

Welcome to what I hope will become a weekly addition to your insights and reading. I am trying something new. Goal is to highlight 3 important events in healthcare, AI, and health tech from the past week you should really be aware of. Each Monday (sending a little early this week because of Memorial Day), I will send out a new newsletter. My goal is to bring you value as the reader and create new relationships that will help propel healthcare forward positively. Lets get started!

Number One: Optum Rx announces new pricing model

https://www.unitedhealthgroup.com/newsroom/posts/2024/2024-05-optum-rx-clear-trend-guarantee.html

On May 20th, 2024, Optum Rx introduced the Clear Trend Guarantee?, an innovative addition to its Cost Made Clear payment solutions aimed at enhancing transparency and predictability in pharmacy benefits.

Key Takeaways:

• Predictability and Value: Clear Trend Guarantee combines various pricing components into a single per member cost, offering plan sponsors greater predictability in managing pharmacy spend.
• Comprehensive Solutions: Available from January 1, 2025, this solution is part of Optum Rx’s extensive suite that includes pass-through models and traditional options, ensuring flexibility and tailored benefits.
• Significant Savings: Current solutions have already achieved substantial savings, including 27% on network pharmacy rates and $43 billion in reduced spending through managed utilization.

Number Two: NVIDIA Continues Record Growth

https://nvidianews.nvidia.com/news/nvidia-announces-financial-results-for-first-quarter-fiscal-2025

This is important because with this growth comes advancements in compute, that further scale and offer more and more capabilities, particularly in the GenerativeAI space.

NVIDIA reported a record quarterly revenue of $26.0 billion for Q1 FY2025, marking an 18% increase from the previous quarter and a staggering 262% rise from a year ago. The data center segment alone contributed $22.6 billion, up 23% from the prior quarter and up 427% year-over-year, driven by strong demand for generative AI. The company also announced a ten-for-one stock split, effective June 7, 2024, and a 150% increase in its quarterly cash dividend. CEO Jensen Huang highlighted the transformative impact of AI across various industries, with the Blackwell platform and other innovations positioning NVIDIA for continued growth.

Key Takeaways for Healthcare Innovation:

• Generative AI Expansion: NVIDIA's AI technologies are being adopted by healthcare customers, enhancing capabilities for medical data analysis and personalized treatment plans.
• Collaborations with MedTech: Partnerships with companies like Johnson & Johnson MedTech are integrating AI to support surgical procedures, improving precision and outcomes.
• AI-Driven Efficiency: NVIDIA’s advancements in AI infrastructure and computational capabilities are enabling more efficient and effective healthcare solutions, from diagnostics to patient care management.

Number Three: The Pay PCP's Act

https://www.hcinnovationgroup.com/policy-value-based-care/article/55040675/apgs-susan-dentzer-weve-got-to-inspire-pcps-forward-into-value-based-care?o_eid=9725D6234256A1S&oly_enc_id=9725D6234256A1S&rdx.ident[pull]=omeda|9725D6234256A1S&utm_campaign=CPS240521097&utm_medium=email&utm_source=HI+Daily+NL

APG's Susan Dentzer expressed strong support for the newly introduced Pay PCPs Act, which aims to reform primary care physician payment models and promote value-based care. Introduced by Senators Sheldon Whitehouse and Bill Cassidy, the legislation proposes hybrid payments to incentivize high-quality care, reduce emergency visits and hospitalizations, and lower overall health costs. The bill also aims to cut Medicare beneficiaries' cost-sharing for primary care services and create a technical advisory committee to help CMS determine Fee Schedule rates more accurately. Dentzer highlighted the importance of adequately compensating primary care providers to enable a transition to value-based care and address the current primary care crisis.

Key Takeaways for Healthcare Innovation:

• Hybrid Payment Model: The Pay PCPs Act proposes hybrid payments to reward primary care providers for delivering high-quality care, aiming to improve health outcomes and reduce costs.
• Reduced Cost-Sharing for Patients: The legislation would cut Medicare beneficiaries' cost-sharing for primary care activities, encouraging more patients to designate primary care providers as their primary source of care.
• Support for Value-Based Care: By providing prospective payments and reducing the financial pressures on primary care practices, the bill lays the groundwork for a broader adoption of value-based care models.

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