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Curbside Consult with Dr. Jayne 4/6/26

April 6, 2026 Dr. Jayne No Comments

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All eyes are on the moon this week. The hot topic around the virtual water cooler after the launch involved the issues that Artemis II commander Reid Wiseman had with Microsoft Outlook.

Apparently one astronaut had two instances of the software, and neither was working. NASA had to access the system remotely to fix the glitch, which took about an hour. The capsule communicator at Mission Control said, “It will show offline, which is expected,” which had me chuckling since my Outlook frequently shows as disconnected despite my laptop being on a wired connection.

It was interesting to hear launch-related reactions from different generations of friends, family, and co-workers. Those who felt a close connection to the Apollo launches have a pragmatic take on the event, anchoring on earlier memories of our travel to the moon. Many in younger generations who have seen numerous International Space Station launches wonder why everyone thinks it is such a big deal. And some of us who were real-time witnesses to the loss of Space Shuttle Challenger remembered sitting in a classroom watching the events of that day unfold.

I admit that I was one of the people who held their breath until Artemis II crossed the Karman line and achieved main engine cutoff. Hopefully the Outlook glitches and a temperamental toilet will be the biggest of the issues the crew faces.

This is the farthest that we have traveled from Earth in a long time. We remember the loss of Space Shuttle Columbia on its return, so I am sure that the crew’s loved ones will be coping with anxiety until they are safely back on Earth.

Many parallels exist between the work that NASA does and what we do in healthcare. A commitment to a safety culture is required to achieve success. People may not realize that the surgical safety checklists that operating rooms around the world use every day were inspired by aerospace protocols, since that industry realized that human memory isn’t enough when you are dealing with life and death situations.

Side note: if you haven’t read “The Checklist Manifesto” by Atul Gawande, I recommend it.

Like space flight, medicine requires backup systems, whether it’s EHRs or generators that keep critical equipment functioning during a power loss. I’ve been in the middle of doing a procedure on a patient when the power went out, and it wasn’t pretty. It was in an ambulatory office in an office building that wasn’t exclusively medical, so we didn’t have a generator. I have never been so grateful to have a laptop in the exam room with me. The light from the screen allowed me to safely halt the procedure, ensure that the patient was safely positioned, and open the door to the hallway where emergency lights had come on. You can bet that every exam room had a flashlight in it after that event.

Watching the closeout crew help the astronauts get situated inside the launch vehicle reminded me of being in the operating room. The crew had rehearsed the boarding procedure many times. They know exactly where they can and can’t place their feet or hands, and they know how to move so that the team that is assisting them can get the job done.

The people who were performing the tasks need to know exactly what they are doing and to execute flawlessly. Those who observe the process need to be able to identify if something deviates from the expected sequence and to feel empowered to call out those deviations. If you’ve ever been told by an OR nurse that you have somehow violated the sterile field, you know what that feels like.

Deviations occurred, and I was impressed listening to the NASA livestream by how they handled warning lights or other alerts. One of my colleagues likened it to caring for an extremely sick patient who is at a hospital that doesn’t have advanced services, where you rely on the tele-ICU team to help you talk through the situation and determine the best course of action.

It is reassuring have remote experts available to analyze problems as a team. Having been in situations where I was operating at the edge of my scope of practice, I know what it feels like when the experts arrive to help you through what you are doing or to take the handoff so that you can focus on other priorities.

I enjoyed listening to pre-launch media reports that described how NASA optimizes the human performance elements of the mission. Whether it’s designing the crew’s day, including sleep and activity periods, or determining what foods will be included on the mission, every decision is worked through carefully. Space is an unforgiving environment, and they want to ensure that the crew has what they need to be at their best without introducing unnecessary variables that could compromise the mission.  After launch, the crew reviewed the first aid kit and some clinical procedures.

My favorite orbital mechanics engineer explained that the planned mission is on a free-return trajectory. It will use the moon’s gravity to slingshot it back to Earth, which reduces additional points of potential failure. It’s nice to have an in-house expert at times like these.

Although following a NASA-style approach can improve safety in healthcare, it can’t account for every variable that happens in hospitals every day. Unless they are coming in for preventive services, patients are already in a suboptimal state of health. The teams that are caring for them are working with resource constraints that are driven by economic, cultural, and regulatory factors.

Sometimes we have to make split-second decisions without a backup team to advise us or to make sure that we have considered all options. Even when we do our best, every procedure has a set of possible complications, which negatively impact both the patient and the care team.

I hope this trip to the moon inspires the next generation of scientists, engineers, and dreamers, and that they will come up with technologies along the way that can benefit all of humanity. If nothing else, a fresh set of photos from a quarter of a million miles away might remind people that we are all in this together, and at least for now, Earth is the only home we have.

How has the current lunar mission impacted you? Were you among those holding your breath during the launch, or did you learn about it after the fact? Leave a comment or email me.

Email Dr. Jayne.

Morning Headlines 4/6/26

April 5, 2026 Headlines No Comments

Anthropic reportedly acquires medical AI startup Coefficient Bio for $400M+

Anthropic will acquire drug discovery and research technology vendor Coefficient Bio, an eight-month-old, nine-employee startup.

The American Telemedicine Association and Johns Hopkins Medicine launch initiative to overcome barriers to interstate telehealth access

The organizations launch a three-year initiative to push federal policy changes to reduce state licensure barriers and expand interstate telehealth access.

Office Ally Acquires Jopari Solutions Inc. to Expand Clearinghouse Network and End-to-End Electronic Transaction Processing

Healthcare clearinghouse network operator Office Ally acquires Jopari, a healthcare revenue cycle and medical billing connectivity software provider.

How A.I. Helped One Man (and His Brother) Build a $1.8 Billion Company

A solo founder uses AI tools and outsourced healthcare infrastructure to quickly and inexpensively create a GLP-1 dispensing website that made $400 million in sales in its first year.

Monday Morning Update 4/6/26

April 4, 2026 News 1 Comment

Top News

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Anthropic will acquire drug discovery and research technology vendor Coefficient Bio for $400 million in shares.

The eight-month-old company has nine employees.


HIStalk Announcements and Requests

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Last week’s poll results are interesting, as even we health tech experts are divided on how much freedom we give patients over their own data.

New poll to your right or here: Would you reject a job candidate who seems to have used AI to craft a resume, emails, or headshot? An interesting aspect of this is how you would know, with the obvious answer being “it’s too polished.” Does than penalize someone who might actually be polished?


Sponsored Events and Resources

None scheduled soon. Contact Lorre to have your resource listed.


Acquisitions, Funding, Business, and Stock

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A one-person company uses AI to create an online business that sells GLP-1 weight loss drugs will book $1.8 billion in sales in its second full year of business. Its founder, who just hired his brother as employee #2, spent $20,000 and used several AI tools to create its websites and ads, manage customer support, and monitor its business performance. It outsourced the prescribing and prescription fulfillment functions to outside companies. The company has been warned by FDA of selling illegal copycat drugs and has been accused of running deceptive ads that feature AI-generated fake doctors and deepfaked before-and-after patient images.  


Announcements and Implementations

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America West Medical Transportation launches an Epic-integrated SMART on FHIR app fir scheduling patient transport from with the EHR. The app, which was built on VectorCare’s patient logistics platform, reduces booking time and adds real-time tracking and automatic documentation.

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The VA expands its rollout of Mynd’s virtual therapy for pain, anxiety, and distress.


Other

In England, a dietitian loses her license after a tribunal determines that she used ChatGPT to generate answers during a video job interview. Interviewers become suspicious when Aiwanehi Aigbokhaevbo repeatedly asked them to restate their questions, echoed the questions back slowly to buy time for the AI to finish its answer, and then looked off camera to read back its polished responses. The panel tested their concerns by entering the same questions into ChatGPT, which yielded nearly identical answers. NHS sources say that they have seen a good bit of AI interview cheating, especially from Nigerian job applicants. 


Sponsor Updates

  • Nordic releases a new “Designing for Health” podcast featuring an interview with Stephen Williams, MD, MBA.
  • SlicedHealth becomes a preferred partner of The Cottano Group.
  • Wolters Kluwer Health releases the results of its “Lippincott FutureCare Nursing 2026 Survey.”
  • WellSky offers a new white paper titled “Redefining care transitions: Creating reliable, value‑based patient journeys.”
  • The “HITea with Grace” podcast features VisiQuate CEO Brian Robertson in an episode titled “Finding Data Gaps to Empower Healthcare Organizations.”
  • Vyne Medical will sponsor and exhibit at NAHAM 2026 April 28-May in Chicago.

Blog Posts


Contacts

Mr. H, Lorre, Jenn, Dr. Jayne.
Get HIStalk updates.
Send news or rumors.
Follow on X, Bluesky, and LinkedIn.
Sponsorship information.
Contact us.

Morning Headlines 4/3/26

April 2, 2026 Headlines No Comments

WHOOP Raises $575 Million at $10.1 Billion Valuation to Advance Global Health Platform

Wearables company Whoop raises a $575 million Series G round that values the company at $10.1 billion.

Blackstone hires bankers for $500 million AGS Health IPO, eyes 2x valuation jump in a year

Blackstone reportedly hires investment banks to plan an IPO of AGS Health at a valuation of at least $3 billion.

EFF Sues for Answers About Medicare’s AI Experiment

The Electronic Frontier Foundation (EFF) files a Freedom of Information Act (FOIA) lawsuit against CMS, asking for information about vendors and technologies it will use to run the AI-driven WISeR prior authorization program pilot.

News 4/3/26

April 2, 2026 News 1 Comment

Top News

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An activist investor pressures the board of Teladoc Health to cut costs, repurchase shares, and sell or spin off its behavioral health business.

Pineal Capital Management notes that TDOC shares are down 98% since February 2021. It says that Teladoc paid too much in its $18.5 billion acquisition of Livongo in 2020, adding that the company’s low stock price makes it vulnerable to takeover.


Sponsored Events and Resources

None scheduled soon. Contact Lorre to have your resource listed.


Acquisitions, Funding, Business, and Stock

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Ambient Clinical Analytics raises $5 million in strategic funding and names Brian Tufts, MBA, MS (Vantive) as CEO to drive expansion of its real-time clinical analytics, decision support, and workflow platform.

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Wearables company Whoop raises a $575 million Series G round that values the company at $10.1 billion.

Blackstone reportedly hires investment banks to plan an IPO of AGS Health at a valuation of at least $3 billion. The private equity firm acquired the company for $1.1 billion in July 2025.

Oracle will lay off 539 employees at its Kansas City campus between May 26 and June 1 as part of its broad nationwide cuts, according to a WARN act filing. Companies can file WARN notice after a mass layoff as long as those affected remain on payroll throughout the notice period.


People

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University of Utah Health promotes Kensaku (Ken) Kawamoto, MD, PhD, MHS to the newly created position of chief health AI transformation officer.


Announcements and Implementations

FDB launches MedProof MCP, an AI-native Model Context Protocol server that lets healthcare organizations deploy AI agents for medication decision support and patient-facing workflows.

Altera Digital Health disputes blame for West Suburban Medical Center’s closure, saying its Paragon system is widely used successfully and that it had been working with the hospital to address broader operational and financial problems.

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Commure develops a speech-to-cursor extension that allows using its ambient AI product to dictate into any text field or application.

A KLAS interview of a small number of users of Abridge’s AI documentation product for nurses at Epic sites finds good adoption for drafting flowsheet documentation from natural conversation and  use of links that show each item’s source in the transcript. Respondents recommend assigning strong leaders to run the implementation and making sure that nurses are comfortable speaking instead of typing their thoughts,


Government and Politics

The Electronic Frontier Foundation (EFF) files a Freedom of Information Act (FOIA) lawsuit against CMS, which it says has ignored its requests to provide information on how its AI-driven WISeR prior authorization program will work. EFF is asking for copies of contracts with participating technology vendors; testing records related to accuracy, bias, or hallucinations; and the results of any audits or evaluation.


Other

A family sues Bridgeport Hospital for malpractice after their son, who was a dental student, died in what the family’s attorney calls a “fake ICU.” The plaintiffs allege that he was assigned to a tele-ICU that had no intensivists on site during overnight hours. The plaintiffs attorney summarizes, “It’s a fake ICU. It’s not real because no patient would ever consent if they were told … they’re not going to have a doctor in here, they’re going to be on the tube.”

The former chairman of the Arkansas State Medical Board is indicted on federal charges alleging that he sedated and confined psychiatric patients to increase healthcare reimbursements in a behavioral unit that his company was running. Prosecutors say he used powerful drugs without medical justification, while staff falsified records and, in some cases, used coercion or physical abuse to force unnecessary treatment and prevent reporting.


Sponsor Updates

  • Medicomp Systems releases a new episode of its “Tell Me Where IT Hurts” podcast featuring show-floor observations from HIMSS26.
  • ReferWell offers a new case study titled “How this Health Plan Achieved Up to 8:1 ROI Multiple Lines of Business.”
  • Surescripts announces strong adoption of RxTransfer, including across 4,800 Walmart locations, enabling pharmacies nationwide to electronically transfer prescriptions quickly and accurately.
  • Ellkay will present at Executive War College 2026 April 29 in New Orleans.
  • Health Data Movers releases a new “Quick HITs” podcast episode titled “Josh Wilda On Digital Transformation, AI, and The Future of Healthcare IT.”
  • Infinx announces that it has been named as a Representative Vendor in the “Gartner 2026 Market Guide for Intelligent Prior Authorization, US Healthcare Organizations.”
  • Judi Health releases a new episode of “The Astonishing Healthcare Podcast” titled “Proactive, Personalized, and Powerful: The Future of AI in Health Benefits with Amit Srivastava.”

Blog Posts


Contacts

Mr. H, Lorre, Jenn, Dr. Jayne.
Get HIStalk updates.
Send news or rumors.
Follow on X, Bluesky, and LinkedIn.
Sponsorship information.
Contact us.

EPtalk by Dr. Jayne 4/2/26

April 2, 2026 Dr. Jayne 2 Comments

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Epic once again understood the April Fools’ Day assignment. They shared a trio of tricks this year.

The first was the addition of “introvert mode” for AI-powered charting, which is designed for physicians “who would really rather not have to narrate everything out loud.” It promises to convert “pauses, sighs, key taps, and meaningful silence to generate complete documentation of the conversation that almost happened.” I’ve helped train a number of physicians that fit the introvert profile, so this definitely generated a chuckle.

The second joke involved the remaining of Epic’s AI assistant Penny to Nickel in recognition of the US Mint halting production of the one-cent coin. Epic poked fun at itself. An FAQ published for affected hospitals reportedly includes the question, “Will Nickel cost five times as much?” followed by the single word, “No.”

The one that had me rolling the most though was “MomChart” powered by Epic’s new patient-facing AI assistant, Emmie. The spoof logo included a helicopter and the sample conversations incorporated typical mom-style guilt, including preventive care reminders such as “You know I don’t ask for much. Just One Screening. For me.” Describing the new persona as “warm, persistent, and just wants what’s best for you” had me laughing out loud, which fortunately was not while multitasking on a call involving video.

I cackled at the mention of MomChart combining “evidence-based clinical guidance with the unconditional love of someone who has been worried about you since the day you were born.” Future personas were proposed including “The Friend Who Happens to Know a Lot About Medicine,” which should resonate with every physician who has been on the receiving end of questions from well-meaning friends and family. “Dad Mode” was also mentioned as being in development, including daily weather updates, oil change reminders, and random news articles under the header “Thought you should see this.” Well played, Epic, well played.

I spent a big chunk of today playing phone tag with a physician who doesn’t seem to understand basic workplace courtesies. He emailed me asking for the opportunity to chat about a recent change to the EHR, and when I offered times, he countered with a request to “send me a secure chat at 8 a.m. and we’ll see what my day looks like.” We are all about serving our internal customers, so I did as he asked.

He then texted me multiple times over a 10-minute period, telling me he was free at the moment, He then escalated to tell me that he only had a few minutes and then that he could no longer wait for me. I guess I didn’t understand that I was supposed to text him to see what his day looked like and then sit staring at my phone just in case he was free. 

I replied again and outlined my schedule, letting him know what blocks of time I had available. He then called in the middle of two meetings in a row. When I was finally able to reach him, he asked if I had any training materials for the new feature that explained why his department should use it, and if so, could I send them.

I’m still baffled why that request couldn’t have been included in the original email or why it required several rounds of phone and chat tag between two physicians who have plenty of other things demanding their time.

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An Original Investigation in the Journal of the American Medical Association this week looks at the impact of AI-powered scribe tools on clinician visit quantity and time expenditure. Across five academic medical centers, they examined the metrics of 8,581 clinicians, including 1,809 who were using AI-powered scribe tools. The locations were diverse, including Mass General Brigham, Emory Healthcare, University of California San Francisco, Yale New Haven Health, and the University of California Davis.

The sites used three AI scribe tools, Ambience, Nuance DAX Copilot, and Abridge, either individually or in combination. The institutions provided data on clinicians over at least a 12-week period, including six weeks pre-adoption and six weeks post-adoption for those using the tools.

Using data from Epic’s Signal database, the authors found decreases in total EHR time and documentation time, and an increase of approximately one half patient visit per week. They felt that due to the multisite nature of the sample, they were able to identify the characteristics of clinicians who benefitted most from using the tools, namely female clinicians and those practicing in primary care and medical subspecialties.

I didn’t see specific mention of results for surgical subspecialists, but based on my own experience, a recent office visit with a surgical subspecialist probably contained fewer than 100 words, and was largely procedure focused. From experience with their EHR in a past life, I suspect that the visit could have been documented in fewer than five clicks, so I can’t imagine that having a scribe, whether human or AI, would have been helpful.

I would say that I can’t wait to see the visit summary from that one, but I guess I’ll be waiting a long time because they didn’t offer me access to their patient portal or even mention having one. I was so glad to be in and out quickly that I didn’t think to ask.

The biggest limitation of study in my mind was the fact that the study focused on academic practices where the average weekly visit volume was 20. Most of the clinicians I work with see more than 20 visits per day, so it’s likely that they would demonstrate different results than were seen in the study.

A corresponding Editorial notes that “what is known today about the effectiveness of ambient AI scribes reflects outcomes that are easiest to count: electronic health record (EHR) time, documentation minutes, visit volume, and billing.” It goes on to question whether the time saved “is reinvested in ways that measurably improve outcome and equity for patients.”

I would go farther to ask whether the use of AI-powered scribes impacts clinical outcomes on a per-encounter basis, such as by helping clinicians better organize their thoughts or better focus on their patients and therefore arrive at different recommendations than they might have had they not used scribe technology.

The editorial calls the relationship of productivity to value: “If health systems rely on increasing visit volume to justify the cost of ambient AI adoption, they risk squandering the benefits of time savings if that time is simply converted into more visits per clinician, rather than investments in higher-quality care.”

Based on my interactions with hospital leaders for a few decades now, I’d bet the farm that a large number of hospital executives are looking strictly at the cost/benefit analysis and how they can use the technology to trigger more visit revenue. The editorial specifically calls on organizations to evaluate how AI scribe use impacts chronic disease management, preventive care, and delivery of unnecessary services.

Is your organization looking at how AI tools can improve care quality as well as how they can reduce documentation burden? Or is the focus on improving coding and billing? Leave a comment or email me.

Email Dr. Jayne.

Morning Headlines 4/2/26

April 1, 2026 Headlines No Comments

IKS Health Announces Acquihire of ThinkDTM, an AI-led Company

Care enablement company IKS Health acquires product, strategy, and digital services business ThinkDTM.

OpenAI raises $122 billion to accelerate the next phase of AI

ChatGPT parent company OpenAI, which launched ChatGPT Health in January, raises $122 billion.

Activist Pineal Capital pushes Teladoc to consider split, other changes to boost value

Teladoc shareholder Pineal Capital Management calls on the company to conduct a strategic review and to consider a separation of its BetterHelp and Integrated Care businesses.

Healthcare AI News 4/1/26

News

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Noah Labs receives FDA breakthrough device designation for Vox, which detects heart failure from a five-second daily voice recording.

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Penguin AI launches a build-your-own platform that allows health systems to design digital workers. The tool includes 100 pre-built digital workers for tasks such as HCC retrospective coding, clinical document summarization, and eligibility verification.

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Butterfly Network receives FDA clearance for an AI-powered ultrasound tool that estimates gestational age in under two minutes without requiring a sonography-trained user.

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Hartford HealthCare begins beta testing PatientGPT, which uses patient medical records to provide guidance and education and allows users to launch a virtual visit or schedule an appointment. The tool was developed by K Health.

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Clinical copilot developer Avo raises $10 million in a Series A round.

Ambience Healthcare introduces Chart Chat for Nursing, which embeds conversational AI in the EHR to allow inpatient nurses to query patient charts in plain language.

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OpenEvidence adds medical coding capability to its evidence-based knowledge system.


Business

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Jimini Health, which offers a patient-facing behavioral health triage chatbot called Sage, raises a $17 million seed round.


Other

NYC Health + Hospitals President and CEO Mitchell Katz, MD says in a panel discussion that AI could immediately replace a significant portion of radiologists. He asked panel attendees whether there is any reason not to pursue state regulation that would allow AI to read imaging studies without supervision, referring only abnormal findings to a radiologist. A radiologist responds:

Undeniable proof that confidently uninformed hospital administrators are a danger to patients: easily duped by AI companies that are nowhere near capable of providing patient care. Any attempt to implement AI-only reads would immediately result in patient harm and death, and only someone with zero understanding of radiology would say something so naive. But in some sense, they’re correct: Hospitals are happy to cut costs even if it means patient harm, as long as it’s legal.


Contacts

Mr. H, Lorre, Jenn, Dr. Jayne.
Get HIStalk updates.
Send news or rumors.
Follow on X, Bluesky, and LinkedIn.
Sponsorship information.
Contact us.

HIStalk Interviews Reed Liggin, CEO, SlicedHealth

April 1, 2026 Interviews 1 Comment

Reed Liggin, RPh, MBA is co-founder and CEO of SlicedHealth.

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Tell me about yourself and the company.

I went to University of Georgia College of Pharmacy and got into healthcare as a hospital pharmacist. I got  an opportunity to get into health tech in the e-prescribing field in the late 1990s. I worked for a California company that flamed out in the dot-com bust of 1999. I worked briefly for Allscripts as it was becoming an EHR company, and from there I went to McKesson and started selling the number one hospital pharmacy system in the market that they had acquired. I built my career at McKesson, which is where I really learned the business.

I started my own company, RazorInsights, in 2009 with a couple of friends from McKesson. I worked there for almost three years and we had an exit in 2015 to Athenahealth. I was then hired as CEO of EazyScripts in Chicago. We were doing e-prescribing for telemedicine. We successfully sold that company in the spring of 2019. From there, I got together with one of my co-founders from the Razor days, Mike McKenzie, and three other seasoned health tech guys who had worked for us at Razor and Athena to start SlicedHealth.

Our goal was to solve the payer contract intelligence problem for community hospitals, which largely lacked solutions. Going back to the Razor days, we got asked about contract management and payer contract intelligence a lot. As the problems of denied claims and underpaid claims exacerbated over the last few years, we saw a great opportunity to serve that part of the market. 

Today we serve 140 clients in community hospitals under 400 beds across the country, and many of those are under 100 beds. We also have some larger health systems, and we also serve specialty practices like orthopedics, pain management, and women’s health. We offer payer contract intelligence, hospital price transparency, claim estimation for the No Surprise Act, and business intelligence. We recently introduced embedded artificial intelligence, which is called SlicedIQ. Clients can pick any module or combination of modules that suit their needs. We launched in January 2020, just in time for the pandemic, and have been doing this for just over six years

What creates the situation that you call hidden underpayments and what is the financial impact of fixing it?

I don’t want to totally point the finger at payers, but I will point the finger at the payers to a degree. They use sophisticated technology, including AI, to deny claims for various reasons. They are often good reasons, such as where the provider hasn’t put the right information into the claim or has made mistakes on their side, and they are sending it to the payer incorrectly. But often we see systematic denials of claims for a variety of reasons, and we often see claims that are underpaid where something in the contract is not adhered to. It is inefficiency in a highly complex system.

It’s interesting that the customer has to buy the technology to catch their vendor trying to cheat them. Would a payer that doesn’t follow the contract ever be assessed financial or legal penalties?

I’m not aware of any. Providers that are large enough could probably take those things to court and get some restitution. But smaller providers, such as independent community hospitals and practices, have a lot less leverage to fight those sorts of things.

Many people don’t know how bad the problem is. Or they know, but it’s a lot worse than they think. There has been a lack of awareness over the last few years. We saw a big technology gap in certain parts of the market, independent specialty practices and smaller community hospitals. Their core vendor might have a contract management module or some old technology that didn’t do the best job in the world and relied on the client to do the install and maintenance work. It was a big burden for organizations that are already resource constrained. That was the problem we set out to solve.

Does provider adoption of technology level the playing field, or does it just force both sides to one-up each other as in AI wars?

It absolutely levels the playing field and makes the system more efficient. We take in claims data every night through a file drop in the cloud from the claims clearinghouse that the organization uses. As claims are processed nightly, users can review the next morning what hasn’t been paid correctly. You can get on top of these problems quicker and with a high degree of accuracy.

How do large health systems address the issue differently?

Epic and Oracle offer strong native technology in their platforms. As you get above 400 beds, there’s a lot of penetration and use of this technology that we found was not being used in those community hospitals. We had discovered, through our time at Athena and afterward, that a lot of specialty practices were not using that technology as well.

Is it inevitable that revenue cycle is complex when companies are making money from that complexity?

Absolutely. Healthcare is inherently complex and participants can benefit from leveraging that with technology, such as gaming the system by holding on to money longer.

Everybody expected the heaviest use of AI to be in imaging and clinical work, but the big expectations and the gold rush often involve revenue cycle management. How do you run a business around that when AI changes literally every day?

You just described a day in my life right now. As a management team, we are huddling almost daily on how fast things are changing because of artificial intelligence.

I’ll give you a good example. We released our SliceIQ platform, which embeds AI in the payer contract intelligence platform. You had the ability to get step-by-step instructions on how to resolve a claim that had been denied or underpaid, generate an appeal letter, that sort of thing.

We came out with that last November. By January, a half dozen companies were doing the same thing. They tended to be niche companies, startups around AI technology to specifically address mainly pre-adjudication claims issues to prevent them from happening in the first place, but resolving them post-adjudication as well. They were companies that I had never heard of, so we will see if what they are doing is real. We are starting to see some bigger players in the clearinghouse space and the EHR side that are starting to come out with that same sort of technology.

For us as a small company, we have a nice customer base. We were trying to figure out how to solve unique problems in the midst of all this. We are focused on payer contract intelligence, because only a few companies do it and even fewer of them do it well. We are making sure that we carve out what I call our little blue ocean of unique problem solving, while a vast red ocean of people are trying to use AI to automate everything in the revenue cycle.

A payer recently announced that their analysis showed that providers are upcoding, as evidenced by lack of diagnosis or treatment for what they billed. Will it become a trust but verify situation, where providers will need to submit more data or payers will take on the role of clinical auditor?

Absolutely. As the technology enables it, the bar will be raised. You have value-based care as well. We’ve held off moving into that and the jury is out on where it will go, but it seems to be starting to grow. That’s an area that we will help our clients solve.

As a pharmacist, what do you think about how pharmacy has changed? Are you happy with the contributions that technology has made?

It has been overcomplicated by being part of Meaningful Use. Interoperability should have been job one, but it got pushed to the back burner. It doesn’t feel like we are as far along as we should be in some ways.

In other ways, pharmacists in particular are using technology in a very good ways. Nobody has to read physicians’ handwriting any more. We eliminated a lot of safety issues around illegible handwriting and drug interactions that weren’t being caught. From a safety standpoint, we’ve come a long way across all clinical systems.

But it’s still an issue that when you go to a couple of different doctors, if they aren’t using the same system, good luck in being able to share information. We’re still a long way from where we need to be. That’s been frustrating for me as a clinician, where I go to one specialist and then another specialist, they are on completely different systems, and I have to educate them on what’s going on with my whole record and hope they get it right.

The terms CPOE and e-prescribing aren’t used much these days since those are now standard. Will we see other areas where technology will become an expected piece of plumbing that replaced processes that we barely remember?

As someone who is sitting in the claims and revenue cycle space, I don’t think it will get any simpler anytime soon, especially as you introduce VBC contracting and all the data that it will require. The bar will continue to go up as far as what providers need to provide to make sure that their claims are paid properly. Trust but verify systems will ensure that they are getting paid exactly what they are supposed to be.

On the clinical side, I haven’t thought through what will become automated. I assume that prior authorization will get there, but that will still require payers to get some uniformity to make it possible. I tell my team that if you’ve done one claims appeal, you’ve done one claims appeal, because they are like snowflakes. Prior authorization is not much different.

How much of the eventual success of an early-stage company is the result of planning versus just reacting to events as they happen?

I think it’s reacting. We started this business with payer contract intelligence, or payer contract management if you want to call it that, as a goal. But we really started it around business intelligence. Then a pandemic happened, the price transparency law came along, and the No Surprises billing act came along. We just continued to react to those things. They led us down a path to what has become our flagship product, which is payer contract intelligence. But if you had asked me on day one if that was the path that we would take, I don’t know that I would have said that.

Particularly with AI and how fast things are happening, you have to react well to change. You set a plan, but you will have to adjust that plan. We like to stay focused. We have had a lot of opportunities to build other things in the revenue cycle besides payer contracting and price transparency, which uses essentially the same data. We have resisted that, because we want to stay focused. Having built a whole EHR system, with clinicals and financials [laughs], I’ve learned that’s certainly a better way to run a business.

Do you see a day where AI allows tiny companies that have few employees to be major players in health tech or healthcare in general?

I do. We have a project going on where we have been able to do some amazing stuff with AI, and we will be pushing out a couple of new products in the next couple of months. Really it was one person who was behind all of that. AI is going to create opportunities for people to create things and fill in gaps. What I’ve always done in healthcare is to look for gaps where certain providers were underserved or missing capabilities or services that they needed. AI will give people the ability to get there faster with a lot less capital.

What is the company’s strategy over the next few years? 

We want to continue to be known as the best, fastest payer contract intelligence company in the market. We will continue to push up-market. We focus on three key things for our clients. Taking the work off their plate of the build and maintenance of the system and getting them live faster than traditional companies have, and using AI to lean into that those two things to service our customers better. The third thing is making our pricing as low as possible. Obviously as a for-profit company you want to keep decent margins, but as we drive our costs down, we will share that with our customers. That will make it a no-brainer for them to want to do business with us.

We see ourselves as a disruptive force because of the way that we build a model contracts faster using technology, and then take the work off our clients’ plates. We will continue to lean into that. Then we will look for ways to expand our value in that payer contract space. We have AI that will give clients advice on how to negotiate a new contract with the payer, what point they should try to negotiate to improve their deal. We are looking at other ways to expand the knowledge that clients will have around payer contracts.

Morning Headlines 4/1/26

March 31, 2026 Headlines No Comments

HHS Aligns Health Technology Leadership to Deliver Data Liquidity, Affordability, and an AI-Enabled Health Care System for Americans

HHS retires the Office of the Assistant Secretary for Technology Policy and ASTP leadership role and restores ONC to its former role as the sole government body charged with advancing healthcare technology policies and regulations.

Oracle cutting thousands in latest layoff round as company continues to ramp AI spending

Oracle conducts massive layoffs across its service lines, with some sources indicating that the company will part ways with 20,000 to 30,000 employees.

Jimini Health Gets $17M to Enhance Patient-Facing AI Infrastructure

Behavioral health support AI chatbot developer Jimini Health raises $17 million in seed funding.

Omaha healthcare company files for bankruptcy amid lawsuits over alleged fraud

Virtual nursing and technology company Banyan Medical Systems files for bankruptcy amid an investor lawsuit and claims that its former CFO stole millions of dollars.

Avo Raises $10 Million Series A to be the Clinical AI Platform Powered by Trusted Knowledge

Clinical copilot developer Avo raises a $10 million Series A round.

News 4/1/26

March 31, 2026 News No Comments

Top News

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HHS retires the Office of the Assistant Secretary for Technology Policy and ASTP leadership role that was created in 2024. The move restores ONC to its former role as the sole government body charged with advancing healthcare technology policies and regulations.

National Coordinator Thomas Keane, MD, MBA will continue in that position.

HHS has also moved the roles of CTO, chief artificial intelligence officer, and chief data officer from ONC to its Office of the CIO.


Reader Comments

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From Yup: “Re: Oracle Health. You predicted a while back that Oracle Health SVP of products Suhas Uliyar would not see a single Epic-to-Oracle displacement before he moved on to a different job. It seems that he has left Oracle entirely while seeing the aforesaid zero displacements.” Suhas Uliyar said last July that the Oracle-to-Epic train would reverse course and send former customers clamoring back to Oracle Health after seeing the technical whizzbangery that he was touting. I countered that he would leave that job without seeing a single Epic displacement, which is what apparently happened. I will defer to the opinion of Redditor DeCernerfucation from eight months ago:

Suhas has been in the healthcare space for how long? A couple years? Amateur. That’s an awfully big stupid mouth for him to have with such a small amount of experience. He’ll probably just move on to something else when he finds out how hard it will be. This kind of hubris pretty much applies to all of them. I have no respect for their unprofessional trash-talking. The Dunning-Kruger effect is alive and well with Oracle leadership.


Sponsored Events and Resources

None scheduled soon. Contact Lorre to have your resource listed.


Acquisitions, Funding, Business, and Stock

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Oracle conducted massive layoffs Tuesday that are apparently continuing, with some sources indicating that the company will part ways with 20,000 to 30,000 employees. Those who were affected learned of their status via a 6 a.m. email that was sent to their personal email address and by discovering that their access to the company’s electronic systems had been revoked overnight. They were not offered a chance to speak with a human, ask questions, or return to the office. Oracle Health was reportedly not spared, based on many LinkedIn posts from those affected. ORCL shares rose 6% on the news.

Health Management Associates acquires Medicaid-focused technology, analytics, and compliance company HealthTech Solutions.

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Virtual nursing and technology company Banyan Medical Systems files for bankruptcy amid an investor lawsuit and claims that its former CFO stole millions of dollars. The company’s owner says that the former CFO has stated that he will repay the company the $21 million he owes. Banyan has sued the former CFO and his 24 shell companies, claiming that he obtained dual citizenship in the Caymans and bought a $4 million house and a $1 million boat there.

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Clinical copilot developer Avo raises a $10 million Series A round.


Sales

  • Rush University System for Health (IL) selects Charge Infusion automated coding and billing software from Medaptus.
  • Mount Sinai Health System (NY) will make OpenEvidence’s medical AI tool available from within its EHR.
  • Carina Health Network (CO) will implement Innovaccer’s Healthcare Intelligence Cloud.
  • Hendry Regional Medical Center (FL) will replace four separate systems with Meditech Expanse.


Announcements and Implementations

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Sutter Health goes live as the first site to use Epic Emmie, a chatbot that can answer patient questions.

Linus Health secures a supplier agreement with group purchasing organization Provista.

The Veterans Health Administration implements an agentic AI-based operating system developed by Salesforce across 150 VA facilities. Built on Slack, the system unifies service management and patient care coordination.

Document Storage Systems will integrate Sightview’s EHR for eyecare with the VA’s current EHR.

EHR/PM services company Focus Solutions changes its name to Focus while insisting that “the name change is not cosmetic.”


Government and Politics

The McChord Clinic at McChord Air Force Base (WA) rolls out ambient listening technology as part of the DoD’s facility-wide implementation.


Sponsor Updates

  • Agfa HealthCare announces that Spain’s Osakidetza health network has implemented Agfa Enterprise Imaging.
  • Altera Digital Health releases a new client story titled “Transforming Care at St. Luke’s Medical Center Through Digital Health Innovation.”
  • The “This Week Health” podcast features Clearsense executives in an episode titled “From Archive to Intelligence: How Clearsense Is Embedding AI to Accelerate Healthcare Cost Optimization.”
  • Clearwater will sponsor the  SCALE Community Gold Club Retreat 2026 April 10-12 in Park City, UT.
  • Black Book Research founder and President Doug Brown publishes a new book titled “The Black Book of Reshoring: The Essential Guide to America’s New Manufacturing Boom.”
  • Artera shares the successful results Atlantic Health achieved after implementing its AI agents for colonoscopy patient outreach.

Blog Posts


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Morning Headlines 3/31/26

March 30, 2026 Headlines 1 Comment

VHA Deploys Agentic AI Operating System to Improve Care Delivery

The Veterans Health Administration implements an agentic AI-based operating system developed by Salesforce across 150 VA facilities.

Stedi Raises $50M in Series C Funding

Healthcare clearinghouse company Stedi announces $50 million in Series C funding, bringing its total raised to $142 million.

Oracle Scales Up Nashville Offices to Support Rapid Growth

Oracle signs an additional lease in Nashville, increasing its footprint to three locations to accommodate anticipated growth.

Curbside Consult with Dr. Jayne 3/30/26

March 30, 2026 Dr. Jayne No Comments

One of my colleagues from medical school is a residency program director. He was having a virtual conversation with his fellow faculty members about the program’s plans for technology and AI-related education in the coming year. He mentioned that he has a friend who practices clinical informatics and has some experience with AI and asked if it was OK to pull me into the chat.

The topics that they had been discussing were basic, including EHR efficiency, inbox management, and accessing the program’s online educational tools. One faculty member had suggested a lecture about AI, but that was the limit of the discussion.

The program is affiliated with a major health system. I was surprised to learn that none of the program’s faculty members are involved with any of the system’s informatics committees. No faculty member has been identified as a physician superuser for the EHR. Faculty members have had no involvement in the development of order sets or other tools, where their input might result in adjustments that would make them more useful for trainees or students.

I quickly figured out that my colleague’s invitation was not only a request for subject matter expertise, but also a cry for help. Because of the time commitments of being program director, he doesn’t feel like he has the bandwidth to lead technology initiatives, so he was looking for assistance with convincing his faculty that stepping up would be beneficial.

We all agreed that an asynchronous chat wasn’t the best venue to discuss the issues. They agreed to extend an upcoming faculty meeting so that I could attend and give some advice. 

In the meantime, I asked them to brainstorm tech-related topics about which they wish they knew more, tech they’ve seen residents and students use but not faculty, understanding of organizational governance and technology policies, and articles they have seen in their specialty literature that address tech-related or educational issues.

I asked them to send those to me in real time so that I could start to put together an agenda for the meeting. I assured them that I would keep their submissions confidential so that they wouldn’t have to worry about what their peers thought about their technology knowledge or lack thereof.

I also asked my colleague to reach out to his health system to ask if they had specific resources that are targeted towards trainees and learners. His program is the only one in his area, but the health system is a multistate organization and has other residency training programs.

With that in mind, I suggested that he reach out to the chairs of graduate medical education at the other sites to see if they had any recommendations. Nothing is worse than reinventing the wheel, but sometimes solving your own problem, you forget about resources that might be available. He agreed to do that before our meeting.

I did some quick web searching and found a number of resources that are available through the specialty’s faculty development organization, including a telemedicine curriculum. I also found a digital health curriculum that had been shared by a residency program at a similarly sized hospital, which seemed like a good start.

I also found some conferences that are related to technology in academic medicine. They are targeted toward staff and faculty from medical schools, but they looked like they would also be useful for residency faculty.

I also investigated the residency program itself. I discovered that it had only a few full-time faculty members, but a greater number of part-time or voluntary community faculty who are involved in precepting the residents. I suggested that those physicians might also be good resources to consult about their use of technology in the real world of private practice as well as their interest in AI and other related topics.

While I was searching for resources, I ran across some curricular areas that weren’t covered during my time in residency and was glad that they are now part of training. During my early career, medical aid in dying consisted of a single headline-worthy practitioner. It’s now available in multiple states.

I also ran across a free curriculum for managing personal finances, to which all medical students and residents should be exposed. Personal finance is required for high school graduation in a number of states, but I still encounter students, residents, and even young attending physicians who don’t understand the basics of managing their debt and resources.

The curriculum element that most warmed my heart covered using evidence-based resources in clinical practice. It’s one thing to talk about evidence-based medicine, but another to actually incorporate recommendations into patient care, particularly given challenges with insurance coverage of services and the rise in patients who are skeptical about medical recommendations.

The curriculum also includes surveys that assess the effectiveness of the learning module, which included a pre-test to uncover what residents already knew and a post-test to evaluate whether they felt the module made them better prepared for the realities of practice.

In the ultimate “copy off the student next to you” move, I found a program in the same specialty that listed its entire technology curriculum on its website, likely as part of their residency recruiting strategy. The program emphasizes that it strives to “foster an environment where technology enables and enhances patient care.” I did a quick comparison with my own residency program as well as one for which I serve as a preceptor and I didn’t see anything like that on their websites. I wonder if this is a new trend for programs to specifically call that out or whether that program is ahead of the game for technology enablement.

After a couple of days, I began receiving emails from the faculty members with their ideas and questions. One noted that he was glad that I had offered a confidential option to submit his thoughts since he really doesn’t understand “all the fuss about AI” and felt that he must be missing something but didn’t want to seem “like a fossil” by asking.

Another mentioned that she has a particular interest in technology because her husband works for a company that handles a lot of process automation. She didn’t feel like she knew the avenues for participating at the hospital level and was too overwhelmed with other duties to ask.

The faculty meeting occurred last week, and I thought it went well. I think that they appreciated having a relative outsider who they could bounce ideas off of. They were interested in the program that I had found that listed its technology curriculum online and were also excited about some learning modules that had been created by programs elsewhere in the health system.

I had to do very little during the call. They seemed motivated by the fact that other programs offer specific technology features to residents. I’m not sure how this program fared in the recent residency match, but if they didn’t match their ideal candidates, it might be a big motivation.

This started as a favor for a friend, but it made me wonder if there is some room for consulting efforts around this topic. I’m not looking to take on new work, but I would imagine that if one program is struggling in this regard, others are likely in the same position. I will be asking about that at my next informatics conference.

Do residency programs at your institution use technology as a recruiting tool, or are they just trying to keep up? Leave a comment or email me.

Email Dr. Jayne.

Readers Write: AI in Revenue Cycle Demands More Than Innovation

March 30, 2026 Readers Write No Comments

AI in Revenue Cycle Demands More Than Innovation
By Patrice Wolfe

Patrice Wolfe, MBA is CEO of AGS Health.

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​It’s hard not to conclude that the US healthcare system is at an inflection point. After more than 40 years in this industry, I feel that few other moments (perhaps COVID?) have carried the same weight of urgency, disruption, and potential.

Our complex healthcare ecosystem has always operated under pressure. Financial constraints, reimbursement changes, and a shifting regulatory environment are constants in the revenue cycle and across the broader system. What is different now is the pace and scale of technological change, particularly with artificial intelligence (AI).​

Healthcare has never been known for leading in technological innovation. Our industry is deeply tied to regulatory requirements and complex data structures and infrastructures that tend to slow adoption. Even so, we are seeing rapid movement in several pockets of our industry. AI is no longer a future consideration. It is becoming central to how revenue cycle operations and care delivery evolve.​

At the same time, the conversation has shifted from possibility to practicality. The question is no longer what AI can do in theory, but what works in real-world environments that are constrained by margin pressure, operational complexity, limited data liquidity, and uncertainty.​

The One Big Beautiful Bill Act (OBBBA) and other recent legislative and policy changes are beginning to translate into real financial impact. Analysis from Premier Inc. suggests that as much as $68 billion in hospital revenue could be at risk, with some provider organizations facing net patient revenue declines of up to 10%. For many health systems, revenue cycle optimization has already been a key strategic priority. It is increasingly becoming a necessity across the board.​

At the same time, insurance coverage continues to shift. Federal Marketplace enrollment declined 5% in 2026. That is better than expected. But signup numbers are a poor proxy for coverage. Enrollees have until March 31 to pay their premium bill, and after that, coverage will be retroactively terminated, driving higher uninsurance rates. We won’t have a clear picture until July 2026 of the impact that this will have on the insurance mix.

Pressure is also coming from the payer side, where AI adoption has progressed more quickly. Roughly 20% of claims are now being denied, and more than 60% of those denials are never appealed. That represents both a growing challenge and an opportunity for providers to recover revenue more effectively.​

Against this backdrop, health systems are taking a more disciplined approach to AI investment.

Interest in denials management, prior authorization, automation, and clinical documentation integrity remains high. The use cases are compelling. However, the standard for adoption has changed. Organizations are demanding clear, measurable return on investment before committing to solutions that often require high upfront cost and operational change.​

This shift is reflected in conversations across the industry. One health system CIO recently described being approached by a steady stream of AI vendors, each pledging transformation. His response was direct. Show proven results in comparable environments or the conversation does not move forward.

That perspective is increasingly common. Emphasis is shifting to pragmatism over experimentation. Even with that focus, implementation is not simple.​

AI adoption requires more than selecting the right use case. It depends on underlying capabilities that many organizations are still developing. Cybersecurity architecture and governance must be strong enough to support more advanced technologies. Oversight, both operational and regulatory, remains in flux. Federal-level AI regulation has shown some movement, but clarity is limited on what that framework will ultimately look like. In the meantime, organizations are moving forward in an environment that is defined by uncertainty.​

Given these conditions, the way forward is not about broad, rapid adoption. It is about targeted, disciplined execution. There is real opportunity. Modeling from McKinsey & Company suggests that AI could reduce provider collection costs by 30% to 60% over time. Realizing that potential will require a measured approach that balances automation with skilled human expertise.​

Innovation on its own is not enough. Solutions must function within existing workflows, not outside of them. Healthcare revenue cycle workflows are complex, and successful transformation depends on adopting technology that reduces friction rather than adds to it. When done effectively, this can streamline manual work, boost financial performance, and improve both patient and provider experience. The common thread is execution. ​

Healthcare does not lack ideas or innovation. What it requires now is the ability to apply both in ways that are practical, scalable, and measurable. AI will play a central role in that transformation, but only if it is deployed with discipline and a clear understanding of what success looks like in actual conditions.

Readers Write: Revealing Hidden Rural Health Funding Opportunities

March 30, 2026 Readers Write No Comments

Revealing Hidden Rural Health Funding Opportunities
By Phil Sobol

Phil Sobol is chief commercial officer at CereCore.

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Rural healthcare leaders are some of the most resourceful people in the industry. But even the most seasoned administrators are often surprised to learn how many funding opportunities exist beyond the federal bills that dominate the news cycle, including state-specific grants, national resource hubs, and coalition programs. The money is more accessible than you think. Here is where to start.

It’s Not Just About Federal Funding

Sweeping federal legislation like the Rural Health Transformation Program creates meaningful opportunities for rural communities that are working to reimagine care delivery and outcomes. That program alone supports systemic transformation at scale. But for many rural hospitals and health systems, waiting for large legislative vehicles to materialize and then competing for a slice of a heavily subscribed pool is not a funding strategy.

Another path is to look at the full ecosystem of available funding, much of which carries fewer restrictions and less competition than headline-grabbing programs.

State-Level Funding Is Underused

One of the most overlooked categories of rural health funding is state-specific grants and programs. States vary enormously in what they offer, but patterns emerge when they are studied closely. Several states have developed dedicated funding streams specifically for coalition formation. Rural healthcare delivery increasingly depends on networks of providers coordinating care rather than isolated facilities doing it alone.

Funding themes that recur across states include clinical integration, access and infrastructure investment, and health information exchange. The specific states prioritizing each theme differ, which means that a funding opportunity that is perfectly suited to one organization might not exist for a neighbor two states over.

Geography matters. Knowing your state’s funding priorities and how those align with your organization’s strategic goals is not optional background knowledge. It is the foundation of a viable grant strategy.

National Resources That Deserve More Attention

Beyond state-level programs, several national resources provide structured pathways to funding that rural health leaders should bookmark and revisit regularly.

The Rural Health Information Hub is one of the most useful and underused resources. It is available to organizations in all states. It functions as a centralized library, aggregating funding opportunities, implementation tools, evidence-based models, and best practices from across the country. For organizations without a dedicated grants team, it’s an accessible entry point into what is available and what has worked elsewhere.

The Health Resources & Services Administration (HRSA) offers multiple grant programs that are specifically relevant to rural and underserved communities. Among these are programs that support coalition development and cross-provider partnerships, funding categories that are often better fits for rural organizations than infrastructure-heavy grants that assume resources and capacity those organizations simply don’t have.

Technology Is Often an Eligible Use of Funds

This is where the conversation gets particularly interesting for health system leaders who are thinking about long-term sustainability. Many of these funding programs explicitly support technology acquisition and modernization. That means that eligible organizations can use grant funding to purchase or upgrade core components of their technology stack, EHR systems, care coordination platforms, telehealth infrastructure, cybersecurity tools, and broadband connectivity.

For rural hospitals operating on decades-old systems, this changes the math significantly. Technology upgrades that once felt financially out of reach become viable when grant funding offsets or covers the cost entirely.

Telecommunications infrastructure is a particularly underused category. Rural facilities may qualify for programs that reduce or eliminate the cost of voice, data, and broadband services, which directly enables telemedicine, improves EHR performance, and strengthens care coordination across dispersed networks.

The key is to understand which programs allow technology as an eligible expense and structuring your application to demonstrate how that investment serves the broader clinical or community health outcome that the grant is designed to support.

Where to Start

If rural health funding feels overwhelming, the practical first step is not to research every available program simultaneously. It’s to get clarity on your organization’s most pressing strategic needs, whether that’s clinical integration, cybersecurity, telehealth capability, or a long-overdue technology upgrade, and then systematically identify which funding streams align with those priorities.

Start with the Rural Health Information Hub to understand the national landscape. Check HRSA’s current grant offerings for programs relevant to your community type and focus areas. Investigate what your state specifically offers, including any coalition-focused programs that may have fewer applicants and less competition than federal grants.

Funding will never solve every challenge that rural healthcare faces. But the right resources, pursued consistently and strategically, can meaningfully change what’s possible for your patients, your staff, and your community. That is worth the effort of knowing what’s available, and this is a good place to start.

Readers Write: RHTP is Money for Rural Hospitals, But States Say Maybe Not

March 30, 2026 Readers Write 1 Comment

RHTP is Money for Rural Hospitals, But States Say Maybe Not
By Mike Lucey

Mike Lucey, MBA is president of Community Hospital Advisors.

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What happened to “hospital?”

“Protecting Rural Hospitals and Providers” is the title of Chapter 4 (section 71401) of the Big Beautiful Bill, which defines the Rural Health Transformation Program (RHTP). It is six pages of clear instruction on how $50 billion will be funneled into rural healthcare over five years. It outlines who gets it and how they can spend it.

This is an impressive economy of words for a federal document with such a bold objective. The word “hospital” appears 15 times in those six pages. The longer federal Notice of Funding Opportunity (NOFO), which calls on states to submit applications for this funding, includes about 80 instances of “hospital,” which reveals an understanding that rural hospitals are the main access points for a wide variety of care, services, and resources for these communities.

But in many state applications, the word “hospital” fades or completely disappears. How is it possible that a law that was written to protect rural hospitals can morph into a series of state programs and agencies with no explicit mention of hospitals in their objectives?

Delivering rural healthcare faces two key challenges: too much space and too little money. When it comes to money, things are clear. The AMA reports that half of rural hospitals are operating at a deficit. The reasons are complex and varied, but location is intrinsic to all of them.

Too much space makes it less profitable to provide healthcare in a rural setting. Rural patients are, on average, two to three times farther from care than urban or suburban patients. The farther people are from anything, the less they do it. It doesn’t matter whether it is a gym, a bar, a parent, or a doctor. Distance becomes a reason or an excuse for why we can’t get there.

Can RHTP Help? Yes!

RHTP provides an opportunity to address these challenges by providing hospitals with the resources to hit new standards for how they provide care, especially in how they use technology. Nothing is going to change the length of a mile. But technology can close the access and contact gaps that distance creates.

Telehealth and home medical devices are great care tools that continue to get better over time. Full-access portals allow scheduling and reminders, and make messaging clinicians as easy as texting. Transportation can be scheduled and managed for patients with mobility issues through a fully functioning patient portal.

Once technology is in place to increase frequency and consistency of patient contact, technology can enhance these interactions and the quality of care with AI-augmented applications for notes, orders, and coding. These improve provider workflow, decrease burnout, allow better physician-patient interaction, and set the stage for AI clinical guidance. Finally, robust analytics and data management systems will improve the exchange of clinical data between facilities and providers, allowing high quality care regardless of location or specialty.

This vision for better rural care through technology is at the heart of RHTP, and these objectives are stated plainly in those six pages of section 71401. They are worthy and important goals. Improving just these three areas: patient contact, care delivery, and data exchange, improves care for every patient accessing every service the hospital provides. This care foundation can then expand to improve chronic care, nutrition, behavioral health and substance use disorder services, all of which are stated goals of RHTP.

RHTP exhibits a good understanding of the rural “too much space, too little money” challenge. It identifies the problems that space causes and then offers solutions and the money that is needed to deliver those solutions.

But somewhere between the authoring of the original bill and the allocation of funds from the states, many programs veer off course. Money wakes the bureaucratic beast, and the word “hospital” begins to fade.

But that doesn’t mean that the Rural, Critical Access, and Community Hospitals that serve one in five Americans, should accept defeat.

How Do Hospitals Stay at the Table?

My first encouragement to hospitals: don’t be complacent. Don’t take it as inevitable that this money is going to get siphoned off by large and connected entities. States vary widely in how friendly or not they are toward hospitals, but all will make some funds available directly. The difference in how much may well depend on how many hospitals are presenting well-constructed, justifiable projects.

Second: don’t be patient. States are just now assembling staff and drafting processes that will eventually become a method to distribute funds. Now is the time to get to work.

  • Create your project list. Not the list every rural hospital has, which includes things you will get to when you have the money. It is that list plus all the things that you have not even let yourself think about because the budget was so restricted.
  • Tie each project to your state initiatives and to the federal Use of Funds. Include estimated cost, timeline, and metrics.
  • When your state publishes its protocols, format your request to be compliant.
  • Whenever possible, team up with other sites. A collective of voices is harder to ignore.

Finally, don’t get discouraged. These processes are intentionally painful. OK, that is my opinion, but I find the process painful and have come to believe it is meant to cull the number of applicants and leave just the group that makes the process a profession. Stick with it.

Patients in rural communities are being left behind. RHTP is an opportunity to change that. There will always be too much space in rural healthcare, but with the right investment and execution, hospitals can close the gap and make a meaningful difference.

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