good morning.
The debate about technology in healthcare can induce both euphoria (live forever!) and fear (the Change Healthcare ransomware attack is still ongoing). The transformative power of AI, biotech and robotics in medical research is truly exciting. But it's software that puts powerful information in the hands of healthcare professionals that has the most potential to change people's lives right now.
This week, I met with some of the leaders on the front lines. Stryker CEO Kevin Lobo told me that medical device companies have bet big on software, driving their focus on transforming workflows far beyond the operating room. “Five years ago, I never would have thought Stryker would be in this space,” Lobo said. “But we're committed to solving problems for our customers, and we'll continue to grow.”
“The companies that will succeed are the ones that have a strong customer base, unique data and content,” said Nancy McKinstry, CEO of digital health data provider Wolters Kluwer. And, most importantly, of course, they help them solve hard, real-world problems.
To get a sense of the global perspective being experienced by healthcare leaders, take a look at the latest Future Health Index, released this week, a global survey conducted by Royal Philips among healthcare leaders across 14 countries, highlighting the challenges and how to address them.
The top priority for this group is talent: 92% of healthcare leaders report poor staff health, morale, and mental health, and 81% report delayed care due to staff shortages. It's no surprise, then, that 88% believe technology that automates repetitive tasks is essential to solving staff shortages, and 82% say virtual care has had a positive impact on mitigating staff shortages at their organization. Areas where AI is already being used include radiology (27%), inpatient monitoring (23%), preventive care (16%), and remote patient monitoring (16%).
These issues were brought home to me at a Fortune dinner hosted by Philips earlier this week with hospital system leaders. Along with sharing exciting innovations that are transforming how services are delivered, they spoke of multiple pilot programs that need to be expanded and the frustration of insurers whose payment models have not kept pace with innovation, despite clear cost savings from implementing new solutions.
As Jeff DiLullo, chief executive officer of Philips North America, said during our discussion, “The technology exists to address these challenges. To make an impact, we just need leadership to decide where to start.”
For more news, please see below.
Diane Brady
diane.brady@fortune.com
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Living will denial
The Federal Deposit Insurance Corp. has rejected Wall Street giant Citigroup's “living will,” a detailed plan outlining how the bank would wind down its operations if it were to fail. The FDIC is particularly concerned that Citi's data management is “inadequate.” Regulators previously raised concerns about the bank's ability to provide data in a timely manner during the financial crisis. Financial Times
New AI Models
Anthropic, an AI startup founded by former OpenAI researchers, has released a new version of the Claude model, called Claude 3.5 Sonnet. The company claims that the new model is better than OpenAI's GPT-4o, released just a month ago. The speed of new releases shows how hard it is for AI startups to stay on the cutting edge. “The pace of progress is incredibly fast,” says Daniella Amodei, president of Anthropic. Fortune
Islamic Banking
Banks around the Islamic world are developing financial products that do not rely on interest payments, which are prohibited under some interpretations of Shariah law. For example, instead of offering mortgages to prospective homebuyers, Islamic banks might buy the entire house and offer customers a rent-to-buy model. Shariah-compliant financing now accounts for more than 25 percent of pre-tax profits at Maybank, ranked 17th on Fortune magazine's list of Southeast Asia 500 companies. Fortune
Around the water cooler
Microsoft and Nvidia are now the world's most valuable companies. How Intel, once the top chipmaker, failed to join them, by Geoff Colvin
A new study by Oriana Rosa Royle finds that one in four millennial workers would quit their job after one off-hours request from their boss.
CFTC is investigating JumpCrypto, formerly one of the sector's biggest players. By Leo Schwartz
Synopsis: How I went from poor, single mom living in a trailer park to the semiconductor industry's first female CEO, by Christine King
Thomson Reuters CEO: AI guardrails still unclear, but every company can start by pledging to protect customers' data privacy. By Steve Hasker
Billionaire Melinda French Gates Endorses Presidential Candidate for the First Time by Alena Botros
This CEO Daily was curated by Nicholas Gordon.
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