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Still, Marion noted, even the concept of AI, as applied to imaging informatics, remains an area with some areas lacking in clarity. “The reality, he said, “is that I think it means different things to different people. The difference between last year and this year is that some things are coming to fruition; it’s more real. And so some vendors are offering viable solutions. The message I’m hearing from vendors this year is, I have this platform, and if a third party wants to develop an application or I develop an application, or even an academic institution develops a solution, I can run it on my platform. They’re trying to become as vendor-agnostic as possible.”
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They found Collective Medical Technologies, a little company from Salt Lake City, Utah, belonging to Adam Green and Wylie van den Akker, childhood friends from Boise, Idaho. Between school and daytime jobs, they had managed to sell their software to 35% of hospitals in Washington. Emergency doctors raved about it and pushed for its adoption. The governor gave the go-ahead, but all 98 hospitals in the state had to comply. To be effective, they had to share patient information. “The value of the network is in participants,” says Chris Klomp, CEO of Collective Medical, and a childhood friend of the founders.
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“Event notification systems (ENS) and care coordination applications have historically struggled to provide actionable information to providers at the point-of-care,” says Noah Knauf, partner at Kleiner Perkins. “Collective Medical is the first technology we’ve seen that allows the providers and payers in a local healthcare system to efficiently collaborate, delivering significantly better outcomes through risk analytics, real-time notifications, and shared care planning tools. Supporting this team is a rare opportunity to be a part of something that is meaningfully changing the way care is delivered in this country.”
Anderson, who’s been practicing emergency medicine for 30 years, relies on Collective Medical for 40% of his patients. Recently, a 25-year-old woman showed up in the ER at Auburn Medical Center with abdominal pain. At check-in, an alert popped up next to her name. It was her fifth visit in a year. Her chart showed that she had also been to St. Francis Hospital, Highline Medical Center and Valley Medical Center—all within a 20-mile radius of Auburn. Her prescription drug history revealed that six doctors had ordered narcotics. Anderson contacted her primary care doctor, who was unaware of her ER visits, for a next day appointment, and started her on a treatment for opioid dependence.
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“It turned out that little hospital was part of what would become Providence St. Joseph Health, the second-largest nonprofit health system in the country,” Klomp says. Eventually use of their Emergency Department Information Exchange (EDIE) solution started to spread across the state of Washington. The Washington State Health Care Authority reported that use of EDIE by hospital EDs had helped save the state $34 million in Medicaid spending and there was a 9.9 percent reduction in total Medicaid ED visits across the state. “That was big,” Klomp says. “There were compelling results around opioid utilization, in terms of visits resulting in opioid prescriptions and related deaths.”
The AI application uncovered relationships and patterns that physicians either would not have identified or would have taken much longer to identify, Sanders says. For instance, the analysis revealed that for patients with pneumonia and COPD, beginning nebulizer treatments early in their hospital stays improved outcomes tremendously, hospital leaders report.
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Next, Providence drove usage across its five-state system, and Oregon adopted it. “All of a sudden, the world caught up as healthcare started paying for quality instead of just volume,” Klomp says. Growth was slow and methodical as the co-founders sought to understand clinical workflows. “We worked to get real demonstrable outcomes from a clinical and economic perspective,” he adds. “We are pretty conservative. This is a different story than raise a whole bunch of money and try to grow the business fast.”

One day in March 2012, two hospitals emailed him requesting the software. “I remember thinking ‘this is odd,’” says Green. Then, a nurse from Olympia, Washington called. “How do you guys like being mandated?” she asked. Unbeknownst to them, doctors had proposed Collective Medical to the state to curtail ER visits. Says van den Akker: “If you want providers to be advocates of your software, it takes time and effort. Anyone trying to sell a quick solution to something is in for a lot of pain.”

We realized that while bootstrapping a company gives you tremendous autonomy to do the right thing, it’s a rate limiter to growth. Building a network effects-enabled platform hasn’t been previously done at scale in healthcare. We raised capital to accelerate our growth across the country, to deepen our technical capability with significant R&D dollars, and to gain partners who can help us think through these things since this is our first rodeo.


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Next, Providence drove usage across its five-state system, and Oregon adopted it. “All of a sudden, the world caught up as healthcare started paying for quality instead of just volume,” Klomp says. Growth was slow and methodical as the co-founders sought to understand clinical workflows. “We worked to get real demonstrable outcomes from a clinical and economic perspective,” he adds. “We are pretty conservative. This is a different story than raise a whole bunch of money and try to grow the business fast.”
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One day in March 2012, two hospitals emailed him requesting the software. “I remember thinking ‘this is odd,’” says Green. Then, a nurse from Olympia, Washington called. “How do you guys like being mandated?” she asked. Unbeknownst to them, doctors had proposed Collective Medical to the state to curtail ER visits. Says van den Akker: “If you want providers to be advocates of your software, it takes time and effort. Anyone trying to sell a quick solution to something is in for a lot of pain.”
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