SVB aftershocks

While the full effects of SVB’s failure may not be known for some time, repercussions are already playing out. Following the historic bank collapse and its parent company’s subsequent filing for Chapter 11 bankruptcy, confidence in other regional banks is taking a hit. Shares for the recently-rescued First Republic Bank slid more than 30 percent amidst a rapid succession of credit rating downgrades, prompting questions about whether skyrocketing interest rates have finally come home to roost. Ripples extended internationally with the acquisition of Credit Suisse by USB, portending big changes afoot in the overall financial sector. While investigations continue—and the government grapples with its role—the fallout from SVB is being felt throughout the startup ecosystem, as many entrepreneurs relied on the attractive terms of SVB and other regional banks to fund innovation. For these leaders, another unintended outcome of this unnerving moment has been the opportunity to see which investors and advisors are truly in their corner with consistent support and guidance.

There was brighter news coming out of Google Health’s annual event The Check Up. Announcements included new search functionality to improve access to low-cost and no-cost care, updates to Google’s large language model—Med-PaLM 2—that allow it to provide “expert” level answers to healthcare questions, and new AI partnerships for early disease detection. Google Health also launched Open Health Stack, a new set of open source tools to help developers build digital health apps. Given Amazon, CVS, and, now, Google’s healthcare announcements this year, it’s clear retail and tech players are leaning into their respective strengths to grab their share of the healthcare market.

Headlines

How Medicare Advantage Plans Cut Off Care Using AI
Investigation finds MA plans’ use of algorithms has cut off care for seniors in need STAT

Noom Quietly Started Writing Prescriptions For Trendy New Weight-Loss Drugs
New program called Noom Clinical can prescribe anti-obesity medications like Ozempic and Wegovy Insider

Culling The Health Tech Herd
Health systems are buying less technology due to financial pressures Politico

Pear Therapeutics Seeking Financial Lifeline
The first Rx DTx SPAC (say that three times fast) may need to restructure or liquidate Modern Healthcare

Five Key Trends Driving Purchasing Decisions In Healthcare IT
Executives weigh in on purchasing decisions within an evolving IT landscape HIT Consultant

Recent Funding

• Rock Health port co Zus Health lands $40M for its data interoperability solution
• Maribel launches with $25M to build, connect, and optimize at-home care programs
• SpectrumAi secures $20M for its autism care-focused EHR and payer solutions 
• OpenLoop snags $15M for its white-labeled telehealth solutions and provider marketplace
• Biometrics-based fitness optimization and coaching program Fount wrangles $12M
• Healium, a VR-based meditation solution with biofeedback technology, raises $3.6M
• Personalized at-home allergy medication service Allermi nabs $3.5M