HIMSS conference attendees walk the exhibition floor
Source: HIMSS
Debates over artificial intelligence and its role in health care took center stage at the HIMSS Global Health Conference in Chicago this week, where more than 35,000 physicians, other health-care workers, executives and engineers convened to discuss the latest advancements in health and technology.
Companies such as Microsoft, Google and Amazon prominently advertised new health applications for AI on booths across a sprawling exhibition floor, and panels of experts answered questions about how the technology can be used to address industrywide challenges such as staffing shortages and physician burnout.
Many health-care organizations and companies have been using AI in various capacities for years, but a subset known as generative AI exploded into public consciousness late last year when Microsoft-backed OpenAI launched its viral new chatbot called ChatGPT. Generative AI refers to programs that can use fairly complicated prompts from end users to generate text or images.
Just as generative AI has captured the attention of the general public, it has also captivated the medical community.
AI was the focus of the HIMSS conference’s opening keynote, and HIMSS CEO Hal Wolf prefaced the discussion by revealing that he had asked ChatGPT how to solve global health-care challenges. The Healthcare Information and Management Systems Society, or HIMSS, holds the conference each year.
Wolf posed the question to ChatGPT in jest, but David Rhew, global chief medical officer at Microsoft, told CNBC in an interview that generative AI could really be “transformative” for solving big problems in the health-care industry.
“The opportunity to apply these large language models and the artificial intelligence in clinical workflows is tremendous, and we have to do it responsibly,” he said.
For Rhew, that means starting with “high-impact, low-risk” uses for the technology, such as streamlining administrative tasks.
Developing diagnostic or directly patient-facing generative AI applications are higher risk since they pose significant regulatory questions for companies, academics and federal agencies such as the Food and Drug Administration to work through. Rhew said to think of AI as if the health-care industry has just been introduced to a car, while none of the stop signs, traffic lights or roads have been created yet.
“We still have to figure out how to do this together,” he said.
HIMSS CEO Hal Wolf speaks at the HIMSS conference
Source: HIMSS
But in the meantime, administrative or “back office” tasks require less regulatory oversight, and there is a real need for efficient solutions, since clerical work is often burdensome for clinicians.
A study funded by the American Medical Association in 2016 found that for every hour a physician spent with a patient, they spent an additional two hours on administrative work. The study said that physicians also tend to spend an additional one to two hours doing clerical work outside of working hours.
Similarly, in 2017, the Journal of the Association of American Medical Colleges published a survey where respondents said around 24% of their working hours are spent on administrative tasks. More than two-thirds of the physicians surveyed reported that administrative responsibilities “negatively affect their ability to deliver high-quality care.”
HIMSS attendees told CNBC they believe generative AI can help with these tasks.
Letting AI do the clerical work
On Monday, Microsoft announced an expanded partnership with Epic Systems, a health-care software company that helps hospitals and other health systems store, share and access electronic health records. More than 160 million people use Epic’s MyChart software, which provides patients with direct access to their health information and care team.
Epic’s first application of the AI technology automatically generates draft responses to the messages that physicians receive from patients through MyChart. The physicians don’t have to use the suggested draft at all, but it saves them time if they choose to edit or send it.
Seth Hain, senior vice president of R&D at Epic, told CNBC in an interview that AI could serve as an impactful hypothesis generation tool for physicians in the future. He said they will be able to ask patient-specific questions such as: What do you think I should look at next in regard to this problem?
Peter Lee, corporate vice president of research and incubations at Microsoft, told CNBC that an early look at Epic’s AI developments brought tears to his eyes.
“It just blew me away,” he said.
Microsoft’s speech recognition subsidiary Nuance Communications also announced a clinical notes application called DAX Express ahead of HIMSS in March. DAX Express aims to help reduce clinicians’ administrative burdens by automatically drafting a clinical note within seconds after a patient visit.
In a live demo at HIMSS, Nuance previewed future projects and showcased DAX Express’ capabilities, which were met with gasps and joyful exclamations from some of the physicians, nurses and health-care workers in the room.
More than 35,000 people attended the HIMSS conference in 2023
Source: HIMSS
Other companies are also working to use generative AI to reduce administrative burdens.
Amazon Web Services on Monday announced an expanded partnership with Philips, a Netherlands-based health technology company. AWS has already been supporting many of Philips’ existing cloud-based and AI initiatives, such as those that help radiologists analyze scans and medical images more quickly — even from their homes.
But Monday’s announcement means Philips will also use AWS’ generative AI technology to simplify its clinical workflows and advance its imaging capabilities even further.
“What’s most exciting is the fact that we are approaching a precipice where we have this tipping point, where we make the right thing the easy thing,” Shez Partovi, Philips’ chief innovation and strategy officer, told CNBC in an interview. “And right now, in most technology, the right thing is a lot of clicks away.”
Partovi said all the small tasks that physicians have to complete are like “death by 1,000 cuts,” so using AI to tease out administrative challenges can make a real impact on the quality of physicians’ lives.
On Tuesday, 3M Health Information Systems also announced that it is also working with Amazon Web Services’ machine learning and generative AI to help reduce physicians’ administrative workload. 3M HIS supports a conversational AI platform used by more than 300,000 physicians, and the company said in a release that the AWS technology will make it easier for doctors to automate and complete accurate clinical notes in the electronic health record.
Similarly, Google Cloud announced a Claims Acceleration Suite last week that uses AI to streamline health insurance claims processing and prior authorization.
According to the Centers for Medicare & Medicaid Services, the current prior authorization process takes an average of 10 days. Google’s AI will help alleviate some of that administrative burden for providers by converting the unstructured data that appears in images, PDFs or other health records into a more easily digestible, structured format.
“They actually require a human being to go in there and to take that data and rekey it into the system for review,” Amy Waldron, director of global health plans strategy and solutions at Google Cloud, said during a media briefing with reporters at HIMSS. “Which, to me, makes absolutely no sense given that someone has to take time to put all that rich data there, and we have AI that can unlock that value.”
Generative AI has “tremendous” potential to improve administrative efficiency in health care, said Microsoft’s Rhew. But as health-care and technology companies continue to make more sophisticated advancements, industry leaders, regulators and academics in the community will have to ensure that generative AI is equitable and does not cause harm to communities.
The technology is vulnerable to bias and discrimination if it is trained on health-care data that does not properly represent a patient population, which could ultimately lead to inadequate decision-making or treatment plans.
As a result, Rhew said, there is a collective responsibility to figure out how to deploy AI with care.
“It is a transformative technology,” he said, “but we have to figure out how to do it responsibly.”
Dina Powell McCormick, who was a member of President Donald Trump’s first administration, has resigned from Meta’s board of directors.
Powell McCormick, who previously spent 16 years working at Goldman Sachs, notified Meta of her resignation on Friday, according to a filing with the SEC. The filing did not disclose why McCormick was stepping down from Meta’s board, but said her resignation was effective immediately.
Meta does not plan on replacing her board role, according to a person familiar with the matter who asked not to be named due to confidentiality. Powell McCormick is considering a potential strategic advisory role with Meta, but nothing has been decided, the person said.
Powell McCormick joined Meta’s board in April along with Stripe co-founder and CEO Patrick Collison. Meta CEO Mark Zuckerberg said in a statement at the time that the two executives “bring a lot of experience supporting businesses and entrepreneurs to our board.”
Powell McCormick served as a deputy national security advisor to President Trump during his first stint in office and was also an assistant secretary of state during President George W. Bush’s administration.
She is married to Sen. Dave McCormick, R-Pa, who took office in January.
Powell McCormick is the vice chair, president and head of global client services at BDT & MSD Partners, which formed in 2023 after the merchant bank BDT combined with Michael Dell’s investment firm MSD.
With her departure, Meta now has 14 board members, including UFC CEO Dana White, Broadcom CEO Hock Tan and former Enron executive John Arnold.
Elon Musk‘s 2018 CEO pay package from Tesla, worth some $56 billion when it vested, must be restored, the Delaware Supreme Court ruled Friday.
“We reverse the Court of Chancery’s rescission remedy and award $1 in nominal damages,” the judges wrote in their opinion.
In the decision, the Delaware Supreme Court judges said a lower court’s decision to cancel Musk’s 2018 pay plan was too extreme a remedy and that the lower court did not give Tesla a chance to say what a fair compensation ought to be.
The decision on the appeal in this case, known as Tornetta v. Musk, likely ends the yearslong fight over Musk’s record-setting compensation.
Musk’s net worth is currently estimated at around $679.4 billion, according to the Forbes Real Time Billionaires List.
Dorothy Lund, a professor at Columbia Law School, told CNBC that while the Friday opinion may restore the 2018 pay plan for Musk, it leaves the rest of the lower court’s decision unaddressed and intact.
“The court had previously decided that Musk was a controlling shareholder of Tesla and that the Tesla board and he arranged an unfair pay plan for him,” she said. “None of that was reversed in this decision.”
“We are proud to have participated in the historic verdict below, calling to account the Tesla board and its largest stockholder for their breaches of fiduciary duty,” lawyers representing plaintiff Richard J. Tornetta said in an e-mailed statement.
Tesla did not immediately respond to requests for comment.
The Delaware Supreme Court issued the order per curiam with no single judge taking credit for writing the opinion and no dissent noted.
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Musk’s 2018 CEO pay package from Tesla, comprised of 12 milestone-based tranches of stock, was unprecedented at the time it was proposed. After it was granted, the pay plan made Musk the wealthiest individual in the world.
Tesla shareholder Tornetta sued Tesla, filing a derivative action in 2018, accusing Musk and the company’s board of a breach of their fiduciary duties.
Delaware’s business-specialized Court of Chancery decided in January 2024 that the pay plan was improperly granted and ordered it to be rescinded.
In her decision, Chancellor Kathaleen McCormick also found that Musk “controlled Tesla,” and that the process leading to the board’s approval of his 2018 pay plan was “deeply flawed.”
Among other things, she found the Tesla board did not disclose all the material information they should have to investors before asking them to vote on and approve the plan.
After the earlier Tornetta ruling, Musk moved Tesla’s site of incorporation out of Delaware, bashed McCormick by name in posts on his social network X, formerly Twitter, where he has tens of millions of followers, and called for other entrepreneurs to reincorporate outside of the state.
Tesla also attempted to “ratify” the 2018 CEO pay plan by holding a second vote with shareholders in 2024.
In November, Tesla shareholders voted to approve an even larger CEO compensation plan for Musk.
The 2025 pay plan consists of 12 tranches of shares to be granted to the CEO if Tesla hits certain milestones over the next decade and is worth about $1 trillion in total. The new plan could also increase Musk’s voting power over the company from around 13% today to around 25%.
Shareholders had also approved a plan to replace Musk’s 2018 CEO pay if the Tornetta decision was upheld on appeal. That plan is now nullified.
As CNBC previously reported, a law firm that currently represents Tesla in this appeal penned a bill to overhaul corporate law in Delaware earlier this year. The bill was passed by the Delaware legislature in March, and if it had applied retroactively, it could have affected the outcome of this case.
Every weekday, the CNBC Investing Club with Jim Cramer holds a “Morning Meeting” livestream at 10:20 a.m. ET. Here’s a recap of Friday’s key moments. 1. Stocks were higher Friday, led by a rebound in Big Tech as the AI trade attempted to regain momentum. Nvidia stock jumped nearly 3% after Bernstein noted it is trading at 25 times forward earnings, landing it in the eleventh percentile of valuation over the past decade. That’s cheap for the AI chip leader. Market strength carried across the semiconductor group, with Broadcom , AMD , and Micron all charging higher. A stock that did not participate in the rally was Nike . Shares of the sneaker and sportswear maker are down 9.5% a day after it reported solid earnings results but disappointing guidance. 2. Jim also highlighted the standout year for Wells Fargo under CEO Charlie Scharf. “Don’t bet against Charlie,” he said after The Wall Street Journal reported late Thursday that the bank climbed to No. 7 in the U.S. M & A league table, compared to No. 14 last year. The bank advised on high-profile deals, including Netflix ‘s bid for Warner Brothers and Union Pacific ‘s bid for Norfolk Southern . Financial stocks have been on a tear this year, prompting us on Friday to trim our position in Capital One and lock in significant gains. On Thursday, we increased the price target for Capital One to $270 from $250 and downgraded our rating to a 2. In addition, we increased Goldman Sachs ‘ price target to $925 from $850 and Wells Fargo’s price target to $96 from $90. 3. Boeing shares climbed 2.6% on Friday after JPMorgan reiterated the stock as a top pick while increasing its price target to $245 from $240, implying a 15% upside from its current price of $213 per share. Analysts argue the aerospace manufacturer’s path to growth is simple: build more planes and deliver them. While cash flow expectations have come down, JPMorgan believes there’s visibility to at least $10 billion by the end of the decade. Jim said he likes Friday’s stock price for a buy. He called Boeing a “long-term idea” given the strength in travel. 4. Stocks covered in Friday’s rapid fire at the end of the video were: FedEx , Conagra Brands , KB Home , Oracle , and CoreWeave . (Jim Cramer’s Charitable Trust is long NVDA, AVGO, WFC, GS, COF, BA. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.