Oracle’s rock-and-hard place in Abilene TX: building out a data center with Nvidia chips that are already obsolete–and the financing it takes (updated)

March 10, 2026 | by

Another mystery solved, not looking good for Oracle. In yesterday’s update to pending record layoffs at Oracle, affecting Oracle Health, new reporting mentioned the breakdown of Oracle’s expansion agreement with OpenAI in building out a leased data center for OpenAI in Texas. Additional details have now come to light in reporting by Bloomberg (hat tip to Brody Ford and team), with separate reporting by CNBC.

The overall impression is not a good look for Oracle. This analysis combines both articles from their sources, plus additional background.

  • The location is part of a 1,000 acre site in Abilene. It is not just any datacenter build site. It is the first part of the $500 million Stargate Project, announced last year by the White House–a multi-year, public-private initiative with the objective of creating leading AI infrastructure within the US. The initial equity funders are OpenAI, Oracle, MGX, and SoftBank. OpenAI release 21 Jan 2025
  • Several parts are already built by the developer, Crusoe, and are up and running. But power for much of it won’t be on for another year.
  • Oracle has already filled the Abilene site with servers which are used by OpenAI for training and deployment. These facilities are on track.
  • Oracle, Crusoe, and OpenAI had been discussing since midpoint 2025 about expanding the facility by almost double, from 1.2 to 2 gigawatts of power demand. (See below for explanation of how big a gigawatt is.)

The differences between Oracle and OpenAI, two of the Stargate equity investors, apparently center on timing for opening the expansion site, which won’t be till next year; the use of a now older generation of Nvidia chips; and Oracle’s financing for the site. There are also differences with Crusoe, the developer.

  • Oracle had already committed to the site expansion, ordered the hardware, and already spent billions on construction and staff. The processing power would be based on Nvidia’s Blackwell chips.
  • The problem: Nvidia is now bringing out chips every year. It is already producing its Vera Rubin* chip, unveiled at January’s CES. Vera Rubin delivers five times the inference performance of Blackwell. Inference is critical to AI actually doing a job based on real world data.
  • OpenAI was not happy about being tied to Oracle’s commitment to Blackwell, already a less powerful and capable chip. There was also Oracle’s unhappiness over OpenAI’s often-changing demand forecasting.
  • Crusoe was also unhappy about the current Oracle facility’s downtime for days during the winter, attributed to weather affecting some of the liquid cooling machinery. This points to Oracle’s planning and building leading to reliability problems.

Three part unhappiness=plan cancellation. Meta is considering leasing the expansion site, brought to Crusoe by Nvidia, according to Bloomberg’s sources.

The ‘hard place’ that Oracle is in is this: the construction of data centers and their power sources is a 12 to 24 month taffy pull. At minimum. Things change in that time, like chips. Meanwhile, one ‘rock’ is that computing power for AI, whether Nvidia or AMD, is growing every year. First line AI companies like OpenAI (or Anthropic for that matter) want the latest, because that is critical to their business. Another ‘rock’ that Oracle has is that the datacenters are being financed via at least $100 billion in debt. Google, Amazon, Meta, and Microsoft are able to finance datacenter builds via their cash-generating businesses, even if this hyperscaling means that the cash cows become somewhat starved for feed. Oracle has to advance money in construction and equipment it must raise in debt markets for a return that may come in a year, two, or even more. [TTA 5 Feb] In other words, Oracle is in a tight spot compared to competition. The likely solution? Further downsize its businesses and employees to afford the Ellisonian Transformation as noted yesterday. 

The ‘rub’ of course is that what the OpenAIs and Anthropics want–the latest and greatest chip in their datacenters–isn’t possible in the brick-and-mortar world. Not even if you have tremendous cash flow out of your faucets and Blackbeard’s Chest in your bedroom.

Update 10 March: Oracle denies all of the above reporting. Here is Oracle’s reply on X.

Recent media activity about the Abilene site are false and incorrect. First, Crusoe and Oracle are operating in lockstep to deliver one of the world’s largest AI Data centers in Abilene at record-breaking pace. Two buildings are completely operational and the rest of the campus is on track. Second, Oracle has completed leasing for the additional 4.5GW to deliver on our commitments to OpenAI.

Unpacking this, Abilene is already a center for Oracle and OpenAI, as noted above. The expansion was only supposed to be 2 gigawatts, not 4.5, but Oracle and OpenAI have other sites that this could be referring to.

In effect, Larry Ellison, a 40% shareholder of Oracle, should bet the farms, the boats, and Lana’i to make these AI datacenters happen–if he really believes this is the future. Will he? And will they be revenue positive–quickly–to pay off the bet? Mr. Market’s stock price is still stuck on skepticism.

A corollary issue: there is major pushback against datacenters, rising up like daffodils in the early spring, but far less beautiful:

  • Extreme power consumption of datacenters causes rising rates for commercial and residential users. The Crusoe Oracle facility, according to the Bloomberg article, uses about 1.2 gigawatts and was seeking to expand to 2 gigawatts. One gigawatt is equivalent to one nuclear reactor and power to 750,000 homes.
  • Their massive, brutalist landscape footprint. If you like warehouses, you’ll love datacenters filling what used to be fields.
  • Their low employment after they are built, the scale of tax incentives that are being dished out, versus the capital investment required. This article from Futurism reports that one heavily subsidized datacenter facility run by Ark Data Centers in Ohio will employ upon completion exactly 10 people. Yet it is being heavily subsidized by Ohio through a 50%, ten-year sales exemption covering mainly new equipment–estimated to total $4.5 million. That is $450,000 per person over the 10 year span, or $45,000 per year subsidizing generally lower wage jobs in IT and security. One cited analysis, which could be exaggerated, indicated that in Virginia, one datacenter job took 100 times the capital investment for similar jobs in other industries. (Editor’s note: yes, these are single analyses and could be biased, nor factor in cash flow.)

Returning to Oracle, we await another shoe drop today on their earnings, projected layoffs, and their impact on Oracle Health.

*Named after the pioneering American astronomer, known for her work on galaxy rotational rates and the discovery of ‘dark matter’.

Summing up the speculation: will Oracle sell off Oracle Health/Cerner to finance $300B OpenAI datacenter buildout?

February 5, 2026 | by

Even Oracle can’t get all the money it wants for AI. The speculation has been building since late last week, kicked off by a report from financial analyst TD Cowen that percolated through financial media first. It centers on the five-year, $300 billion contract Oracle has with OpenAI (ChatGPT) that requires extraordinary financing to fulfill. According to the report (not publicly available), the capital expenditure needed is estimated at $156 billion to build or lease datacenters. To raise this, TD Cowen projects that the former Cerner, now Oracle Health, would have to be sold, as well as a potential cut of 20-30,000 jobs, about 10-15% or more of the current workforce, saving $8 billion to $10 billion in cash flow.

Why doesn’t Oracle go to the markets and banks, hold out the cup to finance this capital expenditure, and let them fill it? US lenders are apparently growing shy on lending for more AI datacenters, while Asian lenders are willing to lend funds albeit at premium rates. In TD Cowen’s analysis, Oracle is having great trouble financing this massive buildout. Investor nervousness shows in Oracle’s credit default swap (CDS) spreads tripling, as well as pressure on their stocks and bonds.

Let’s look at some factors why across several reports:

  • Oracle’s already raised $58 billion in the past two months: $38 billion for facilities in Texas and Wisconsin, and $20 billion for New Mexico. 
  • Since September, lenders have doubled their interest rates on these Oracle projects to near non-investment grade levels.
  • Oracle’s credit default swap (CDS) spreads have tripled,
  • Private datacenter operators can’t get financing, so Oracle can’t fill the gap with leases, even though a few months ago Oracle was able to lease 5.2GW of US data-center capacity across Texas, Wisconsin, Michigan, and New Mexico specifically for OpenAI.
  • On top of OpenAI, Oracle is also building datacenters for Meta and Nvidia in a $523 billion total commitment

Oracle is tightening the purse strings to reduce capital needs. They now require for new customers 40% upfront on building infrastructure. Another strategy being explored: requiring customers to buy their own hardware in BYOC (bring your own chip) arrangements which moves that expense off Oracle’s books and onto the customer’s. 

It appears to this Editor that Oracle is caught in a squeeze play. If the company doesn’t build the datacenters, it risks falling behind its massive strategy to dominate the AI datacenter business. Yet the price of this is to abandon its massive investment in healthcare, a linchpin strategy, and the customers there. And there are Federal consequences: the completely incomplete VA implementation scheduled to resume this year and the complete, but still in progress, Department of Defense system.

Let’s look at what the effect may be on Oracle Health. Oracle bought Cerner back in December 2021 for $28.3 billion–after Cerner’s troubles with the VA EHR implementation and in the midst of the Department of Defense rollout. Oracle now is a fading number 2 in health system EHR implementations. It was all Epic, all the time for the health systems attending HealthIMPACT, the conference this Editor attended over the past two days. If Oracle Health is sold, it represents a major strategic reversal for Oracle and personally for CEO Larry Ellison. Both have pumped and promoted changing healthcare through data and systems integration for the past five years. Perhaps Oracle and Ellison have gotten the data “milk” they want and will sell the ‘cow’ now that Old Bossy is not in great shape. Can the ‘cow’ on the block even get the $28 billion paid for it?

Sell, but to whom? Microsoft is the most probable since it is massively integrated into healthcare in multiple systems. The other two under speculation are Google and Amazon. What they have in common are recent and money-losing experiences with healthcare, closing down and selling various ventures. Google Health was shut down and scattered to the winds in August 2021, and Alphabet’s Verily, pivoting like  Nureyev over a decade, is now a ‘precision health’ entity. Amazon, in the midst of layoffs, has done well with Pharmacy, but One Medical. bought during the 2022 Practice Gold Rush, remains a lump of undigested matter in Amazon’s e-commerce digestive tract. Their agita with integrations such as with kiosks for Pharmacy [TTA 9 Oct 2025] and with Prime deserve Pepto-Bismol. Unlikely: any health insurer, for both cash and regulatory reasons. Spinoff? That won’t raise cash.  To be continued….

Sources for this article: CIO, The Register, and Fred Pennic at HIT Consultant, who broke it in the health tech press.

Weekend recap from HIMSS23: Glen Tullman’s 5 predictions, HIStalk’s random four-day walk, Oracle Cerner integration ‘going great’, Seema Verma to Oracle, Caregility’s debuts three enhancements

April 22, 2023 | by

From the reports on HIMSS23, it seemed almost–normal. Companies were there, attendance was back to near pre-pandemic levels, a normal exhibit hall, and while it was Chicago complete with snow flurries, and there were differences–no aisle carpet in the exhibit hall ‘for the environment’, suits were a rarity, Cerner disappeared into Oracle Health, and the industry was through a cycle of boom then bust–it was almost Old Times. 

So what’s next? Filling that hunger for a future view was Glen Tullman, late of Allscripts and Livongo, now 7wireVentures founder and CEO of Transcarent. His five predictions were:

  1. Consumers are in charge. They have an array of options unless in an emergency. The industry must build a new and different relationship with them
  2. AI will inform the experience. Eliminate paperwork, simplify documentation, analytics to optimize staffing levels, improve use of real-time data in care.
  3. Care will happen in 60 seconds. Quick and convenient response to care has to be the norm, especially for chronic conditions. Without this, three undesirables will happen: avoidance of care, wait until their condition is so serious that their healthcare costs become much higher, or wind up in the emergency department.
  4. Health systems will be the hub…maybe. They can own the consumer health experience. But health systems will need to change their payment model. 
  5. At risk is no risk. Health systems must “lead the way” to value-based care, care quality, and what appropriate care plans should look like.

Interestingly, payers aren’t mentioned in this model–and they see themselves as the hub, not health systems, through their acquisitions are providers and home health. MedCityNews. 

HIStalk’s random HIMSS23 walk. Perhaps the best ‘you are there’ take on HIMSS23 was published over four days by HIStalk, including Dr. Jayne’s commentary. They need no commentary from your Editor, including surviving Chicago’s weather, the distances, the no-aisle carpet exhibit hall, long lines for coffee, and local dining delights including wet beef and tavern pizza (avoid deep dish). Pro tips: if you’re an exhibitor, book meetings in advance to assure your ROI, and nothing beats F2F–true of both HIMSS and ViVE, booths were packed.  They were there so you and I didn’t have to be. Where do you think HIMSS24 will be?

Monday: Mr. HIStalk, Dr. Jayne

Tuesday: Mr. HIStalk, Dr. Jayne

Wednesday: Mr. HIStalk, Dr. Jayne

Thursday: Mr. HIStalk, Dr. Jayne  (see in Mr. H’s comments about how Microsoft has quietly taken the lead in health tech with Azure, Nuance, and now generative AI. Watch out Larry Ellison.) 

Healthcare Dive interviewed David Feinberg, now chairman of Oracle Health. According to him, everything is going great with the Cerner integration. “The integration has been pretty smooth” and they are well on their way to creating “a cloud-enabled health platform that brings all kinds of information together to make individuals and communities healthier around the world” and in building an EHR-agnostic health records database to link thousands of separate hospital databases. No mention of the troubled VA EHR implementation. (Ahem)

Announced during HIMSS as an exclusive to Healthcare Dive, Seema Verma, formerly Centers for Medicare and Medicaid Services (CMS) administrator during the Trump administration, is joining Oracle Life Sciences, the company’s clinical trials business, as senior VP and general manager. She has spent the last two years as senior adviser to private equity firms TPG and Cressey, and serving on the board of directors for health tech companies Lumeris, Monogram, Wellsky, and Lifestance.

And to this Editor, Caregility, a cloud-based virtual care and telehealth platform that connects virtual visits, clinical consultations, tele-ICU, remote patient monitoring, and point-of-care observation in hospitals, announced that they have a new portfolio of AI-enhanced hybrid care solutions built on best-in-KLAS (non-EMR) Caregility Cloud. According to the release, “A computer vision application analyzes live video streams of patients and their environment to detect movement and changes that could lead to adverse events such as falls or self-harm. A contactless monitoring system continuously captures patient vital signs, detecting variations in heart rate, breathing patterns, and movement that could be indicative of physiological events like awakening from sleep or an induced coma. An ambient clinical intelligence algorithm generates documentation from live clinician and patient conversations for the patient’s electronic health record.”

Mid-week roundup: another hurdle for Oracle Cerner VA delay, Walmart builds out clinic infrastructure, Cerebral round 3 layoff of 15%, Evolent Health’s 9% layoff, Quil Health age-in-place tech shuts

March 1, 2023 | by

Oracle Cerner EHR rollout faces yet another hurdle. The Department of  Veterans Affairs (VA) announced that the next go-live, Ann Arbor (Michigan) Healthcare System, originally scheduled for completion by July 2023, would be delayed until much later this year or even early 2024.  It turns out that a key reason for the delay is that Ann Arbor is a VA research center, and there are major concerns that the EHR changeover won’t blend well with their medical research. VA Under Secretary for Health Dr. Shereef Elnahal told FedScoop during a media roundtable that “…there are many VA medical centers that are heavy with clinical research because of their academic affiliations, and so those centers will need this research functionality. It’s not just an issue with the Ann Arbor Hospital.” In the article, Dr. Elnahal also lamented that the VA health system running on two separate EHRs, VistA and Oracle Cerner, presented additional risks to security. Also FedHealthIT   Hat tip to HISTalk 24 Feb

Walmart’s 32 clinics are building out their infrastructure. Working with their Epic EHR, all the clinics are now operating on the Horizon Cloud on Azure platform paired with VMware cloud infrastructure and digital workspace technology services. A blog published by VMware interviewing BreAnne Buehl, director of life sciences solutions for VMware, and David Rhew, MD, global chief medical officer at Microsoft, details the ambitions of Walmart to move beyond ‘minute clinic’ to broader primary care and chronic disease management, into proactive predictive analytics. Becker’s Hospital Review, VMWare

And on the less cheerful side:

  • Beleaguered telemental health/ADHD provider/prescriber Cerebral announced another 15% layoff, cutting 285 people. It is its third layoff in one year, following a 20% cut last October.  Cerebral is also closing its medication-assisted treatment (MAT) program for opioid use disorder (OUD). A Cerebral spokesperson said the decisions were made to reorganize the company to “refocus on the most important service offerings for our patients.” Another reason for the MAT program closing is the pending renewal of requiring in-person visits for certain mental health medications. For instance, the Drug Enforcement Agency (DEA) is proposing that buprenorphine can be prescribed via telehealth for treating OUD for 30 days but then an in-person exam would be required.  Last year, Cerebral faced still-unresolved DOJ and FTC actions on their telehealth prescribing of ADHD and other controlled Schedule 2 medications, from deceptive advertising (FTC) to overprescribing (DOJ) [TTA 18 Nov 22]. Topping this off are dueling lawsuits with former CEO Kyle Robertson [TTA 30 Nov 22]. Cerebral at the end of 2021 was valued at $4.8 billion by Softbank and other investors, but no one wants to talk about its worth today.  Reuters, Layoffs Tracker, Behavioral Health Business
  • Payer/provider management services organization Evolent Health quietly laid off 460 positions in its Chicago operations, about 9% of their 5,100 person staff, starting in December 2022 into last month.  Their Q4 net loss doubled to $11.25 million on $382 million in revenue, doubling 2021’s $5.65 million loss, though full year 2022 closed with a final loss of $19 million, about half of 2021. The company projects Q1 revenue of $420 million to $440 million, with 2023 revenue of $1.92 billion to $1.96 billion with a shift of emphasis to specialty care, bolstered by its closed acquisition in January of Magellan Specialty Health from Centene. Layoffs Tracker, Washington Business Journal
  • Quil Health shut down operations, with employees departing 10 February and executives 24 February. The Philadelphia-based Comcast-Independence Blue Cross joint venture was founded in 2018 to support older adults and caregivers in ‘aging-in-place’ alert and monitoring technology. The sole report in HISTalk states that the website is offline plus their CEO Carina Edwards updated her LinkedIn profile for Quil with a February 2023 end date and changed the company description to past tense, pushing up her board positions. Their Facebook page is still live but no posts after 16 January after announcing their joining the AARP AgeTechCollaborative. In 2019, this Editor wrote that they were developing pre- and post-care support through TV (!) with Comcast working on an ambient sensor-based device to monitor basic vital signs and fall detection, which launched in 2020 as Quil Assure. To this Editor, it sounded like a home version of QuietCare circa 2009 with multiple sensors and diagnostics. 

Friday short takes: ElliQ companion robot launches, Tunstall pilots chronic condition support in Ireland, Walmart Better(s)Up, TytoCare surveys virtual primary care, Microsoft closes $19B buy of Nuance

March 18, 2022 | by

ElliQ, a small size companion robot, was officially launched this week by its developer, Intuition Robotics. From the release, it’s a national launch but concentrated in senior-rich south Florida. ElliQ responds and ‘learns’ by voice commands and through a connected tablet. It has gained some notice for its unusual shape (like a small lamp), animation in place, and initiating conversation that resembles chit-chat. Behind this is interactivity–the companion part–checking in to say “good morning,” pointing towards sleep, but also informing family or friends that you’re OK and helping track appointments and medications. We noted at the end of January that Michael Cantor, MD, JD is their chief medical officer, as well as CMO of Uber Health. Intuition release, Fast Company profile of an ElliQ beta tester, aged 81.

It’s a day late for St. Patrick’s Day, but Tunstall Healthcare piloted with several agencies in County Wexford, Ireland, in a 12-week proof of concept test of remote monitoring support of 50 patients with three chronic conditions: heart failure, diabetes, and chronic obstructive pulmonary disease (COPD). The 2021 telehealth intervention measured the impact on the patient’s clinical condition and wellbeing; in-person use of health services; ascertaining patient and clinician perceptions of the intervention and technology; and an analysis of the cost-effectiveness of the intervention. The trial used the myMobile patient app and the triageManager clinical management software platform. Participating in the pilot: Age Friendly Ireland, Integrated Care Programme in the HSE, Wexford General Hospital, Tunstall Emergency Response and Wexford County Council-Age Friendly Programme. THIIS. Also in the same publication is a Tunstall take by Gavin Bashar, Tunstall UK & Ireland managing director, on aging in place with technology support.

In another expansion of Walmart into healthcare, they’re partnering with behavioral health-coaching platform BetterUp in a program dubbed ‘BetterUp for Caregivers’. The app will be offered exclusively through Walmart’s Wellness Hub. Caregivers can access support via BetterUp’s live group coaching circles hosted by a BetterUp coach. Release, Mobihealthnews

TytoCare’s quick survey found that their 300 users via a major insurer preferred more access to virtual primary care, which isn’t much of a surprise. Going through the numbers:

  • 67% felt they would be more likely to stay with their health insurer long-term as a result of being offered remote physical examinations (always catnip to insurers!)
  • 66% of users would consider a digital-first plan
  • 87% of respondents indicated they are pleased by health insurers who offer technology for remote visits
  • Much of this is a reaction to delayed in-person primary care: 90% of members wait an average of six days to see their primary care physician. Over 45% wait between 1-2 hours or more. 

And in the It’s About Time Department, Microsoft’s $19 billion purchase of Nuance Communications closed after the UK cleared the acquisition. It was our Really Big Deal of 21 April 2021. Nuance is a cloud and AI-based speech recognition company with well-known brands Dragon and PowerScribe. Becker’s. 

News and deal roundup: Best Buy’s $400M for Current, VA’s Cerner restart 2022, CVS-Microsoft product deal, and Athenahealth (finally) sold for $17B

December 3, 2021 | by

Whew! Best Buy revealed on its quarterly earnings call that they paid $400 million for Edinburgh/Boston-based RPM developer Current Health [TTA 13 Oct]. It’s near the end of the call transcript published on the Motley Fool. There will be no impact on their financial performance this year and will have a slightly negative impact on the Q4 non-GAAP operating income. Hat tip to HISTalk. 

Also today in HISTalk is a nifty summary of the Department of Veterans Affairs (VA) Cerner implementation timing and restaffing. There’s a graphic on the 2022-23 (FY 2022-24) rollout plus the new organization. VA has appointed a new Program Executive Director, Terry Adirim, MD, MPH, MBA, moving from Acting Assistant Secretary of Defense for Health Affairs, and established a new EHR Integration Council. VA release. VA also published a 10 page analysis on what went wrong with the initial tests and lessons learned, such as creating an EHR ‘sandbox’ for clinician training.

CVS Health and Microsoft continue with a new partnership, this time for digital health products. The five-year deal will include development in two areas: personalizing health recommendations that direct consumers to when and where they need a CVS, and operationally to leverage technology and machine learning for automation to reduce waste. Microsoft release, Healthcare Dive, HealthcareFinanceNews

And in the biggest non-surprise of the past few days, Athenahealth’s (or as they prefer, athenahealth) sale closed before the end of the year in a deal valued at $17 billion. The buyers were, as expected [TTA 19 Nov], Bain Capital and Hellman & Friedman, along with Singapore’s sovereign wealth fund GIC and a wholly-owned subsidiary of the Abu Dhabi Investment Authority. The 24 year-old Athenahealth, one of the EHR pioneers, was acquired by Elliot Investment Management’s PE arm Veritas and Evergreen Coast Capital in 2019 for about $5.7 billion. Its base is down to about 140,000 ambulatory care providers, having exited the small hospital market some time back. In the EHR market dominated by Epic and Cerner, surely Veritas and Evergreen are relieved to be at least getting some cash back. But there’s Misery Sharing, as they are both retaining a minority investment. (A small hint from a marketer–never lower-case the first letter in any part of your name. You make yourself unimportant and it hasn’t been ‘modern’ for a loooong time. It wasn’t lucky for British Airways, either. Perhaps the new majority owners will get this.)  Healthcare Dive, Business Wire

Is healthcare too much for Big Tech’s Google and Apple? Look at the track record. And David Feinberg’s $34M Cerner package.

August 24, 2021 | by

With Google scattering Google Health to the four winds of the organization--the heck with what employees recruited for Health think of being reorg’d to, say, Maps or YouTube and falling through the corporate rabbit hole–more detail has leaked of Apple’s struggles. This time, on the scaleback list (a/k/a chopping block) is Health Habit. It’s an app in the Apple Store that connects users with AC Wellness, a doctor’s group in Cupertino, California. The ‘eligible participants’ are restricted to Apple employees. From the app site, they can check weight, nutrition, blood pressure, and schedule wellness checks. It seems to be the typical ‘skunk works’ project that’s not ready for prime time, but its public fate seems to be poorly timed and simultaneously, overblown because they are–well–Apple. 

Bottom line, is healthcare once again proving rather resistant to being leveraged by technological solutions? Those of us who go back to the Stone Age of health tech, or those of us who joined in the Iron and Bronze Ages, remember when you couldn’t get into a conference cocktail party without a “wellness” app. (You say you’re in behavioral and remote patient monitoring for older adults? Oh, look! A squirrel!)

Microsoft was going to dominate consumer health with their HealthVault for personal health records (PHRs). We know how that turned out–dead apps, Fitbit an also-ran bought, Pebble and Misfit going to the drawer of failed toys, Jawbone t-boning plus Intel and Basis written off in 2017, and HealthVault unlamentedly put out with the trash at the end of 2019. Oh yes, there was an earlier Google Health for PHRs, which died with a whimper back in 2012 or so.

The press releases crow about Big Tech’s mastery of complexity, yet going off on their own without partners–or even with partners–never seems to work. In the industry, it makes for a few good articles and the usual rocket launching at places like Forbes, but the pros tend to treat it with a shrug and pull out a competitive plan. Glen Tullman, founder of Livongo who will never have to worry about paying for chateaubriand for two for the next billion years or so, stated the obvious when he said that patients cared about the overall experience, not the tech.

Speaking of experience, Amazon Care promises the best for its employees and enterprise accounts–a one-minute telehealth connection, a mobile clinician if needed within the hour, and drugs at the door in two hours. All with direct pay. This has met with skepticism from telehealth giants like Teladoc and Amwell with established corporate bases. There’s also CVS Health and Walgreens. The Editor has opined that care isn’t Amazon’s game at all–it’s accumulating and owning national healthcare data on Amazon Care and Pharmacy users that is far more valuable than whatever is spent on providing care and services [TTA 16 June]. Will Amazon really be able to pull it off?

Paddy Padmanabhan, the author of Healthcare Digital Transformation, lists a few more reasons It’s Too Hard For Big Tech In Healthcare in his HealthcareITNews article here….

  • Healthcare is a part-time job for Big Tech
  • Big tech firms want to solve the healthcare problem by themselves
  • Selling technology is not the same as selling healthcare services

…but holds out some hope that the initial success of “digital-first and virtual-first providers of healthcare emerging as challengers” will point the way for them.

And speaking of Google Health and former employees, Cerner’s necessary SEC disclosure today of new CEO and president David Feinberg, MD’s compensation package was sure to create some talk in Googleville among his now-scattered team. $34.5 million over the next 15 months is structured as follows:

  • $900,000 base salary
  • a target cash bonus of $1.35 million
  • a one-time cash bonus of $375,000 stock
  • $13.5 million in Cerner’s restricted shares for 2022
  • $3.375 million in stock shares for the fourth quarter of 2021
  • a new hire award of $15 million in restricted stock shares to offset his equity loss with Google. 

Whew! Becker’s HealthIT

News and deal roundup: Microsoft’s $20B deal for Nuance; Cigna Evernorth finalizes MDLive; GoodRx buys HealthiNation; Papa’s $60M Series C

April 21, 2021 | by

Our Big Deal is Microsoft’s acquisition of Nuance Communications, a cloud and AI-based speech recognition company which has been a leader in healthcare for a few decades. Most recognizable are their Dragon and PowerScribe trade names. Microsoft is paying $56.00 per share, a 23 percent premium to the closing price of Nuance on 9 April, an all-cash transaction valued at $19.7 bn. Closing is projected to be end of 2021 as subject to regulatory and final shareholder approvals.

Nuance and Microsoft have closely worked together for some time with Microsoft Cloud using Nuance speech recognition and Nuance clinical speech recognition offerings built on Microsoft Azure. Nuance claims that in the US, 55 percent of physicians, 75 percent of radiologists, and 77 percent of hospitals use their products. It’s a big but expected bet for Microsoft in healthcare against Apple that is expected to double Microsoft’s total addressable market (TAM) in the healthcare provider space to nearly $500 billion. It also adds enterprise AI expertise and customer engagement solutions in Interactive Voice Response (IVR), virtual assistants, and digital and biometric solutions for companies outside of healthcare. Microsoft release, Becker’s Health IT

Cigna closed its purchase of telehealth provider MDLive on 19 April. Purchase price and management transitions were not disclosed. MDLive will be part of Evernorth, Cigna’s health services portfolio. That portfolio includes Accredo, Express Scripts, Direct Health, fertility health, and more. Earlier coverage 27 February. Evernorth release, FierceHealthcare. 

GoodRx closed its purchase of health education video producer HealthiNation. Sale price was not disclosed. HealthiNation’s video library will reinforce GoodRx’s consumer information on prescription prices for better consumer decisions. Release, Mobihealthnews  

Senior services and socialization ecosystem Papa now has a brand new Series C of $60 million, via Tiger Global Management. Papa connects seniors with Papa Pals, a ‘family on demand’ that appear to be heavily college students. Papa Pals visit with them and provide in-person and virtual companionship, assist with house tasks, technology training, and transportation to doctors’ appointments. Scheduling is done via a smartphone app. The company added Papa Health last year, connecting in ‘Papa Docs’ (an unnerving term for those who recall ‘Papa Doc’ Duvalier of Haiti) for primary care, chronic care management, and urgent care. Papa works extensively with Medicare Advantage plans such as Humana, Reliance, Florida Blue, and Aetna. Founded in Miami in 2017 with now total funding of over $91 million and available in 50 states, earlier round funders include Comcast Ventures and Canaan Partners. Release, Crunchbase, FierceHealthcare

Can technology speed the return to office post-COVID? Is contaminated office air conditioning a COVID culprit?

July 23, 2020 | by

Most offices in the US are still not open or only ‘essential personnel’. As this Editor noted on 19 May, a number of companies, including startups, are focusing on working with employers on return-to-work strategies. There are a raft of approaches including on-site clinics, temperature screening checkpoints, and check-in/reporting apps from Verily (Alphabet) and Fitbit’s Ready to Work. These screeners generally monitor for self-reported symptoms, but some will advise and track you to testing if you demonstrate risk, such as UnitedHealth Group and Microsoft’s ‘ProtectWell’ with a closed loop of testing recommendations that are reported to the employer. Collective Go from Collective Health goes a bit further in emphasizing up-front (molecular [PCR]) testing and continuous employee monitoring into their protocols for, apparently, every worker. OneMedical, which works with 7,000 employers, adds to their on-site management and testing additional contact tracing. FierceHealthcare

Maybe it’s in the air-conditioned air you breathe? Office building air circulation may be a culprit in the spike in Florida, Arizona, and Texas cases. The uptick in cases in Southern states where the contagion rates were initially fairly light may be due to the mostly recirculated air in office air conditioning systems. Most modern buildings don’t have windows which open. Older buildings have their own problems like mold from leaky systems and ‘soot’ (from air pollution and when people used to smoke in offices, remember when?). Newer LEED buildings are so ‘tight’ and energy efficient that air tends to be stagnant. Few buildings have good ratios of air exchange with the outside plus use HEPA filtration throughout the HVAC system. The total picture is that any virus can make its way through offices–six feet of distancing, masks, sanitization, no cafeterias, and acrylic panel separators be d****d.  (Contrast your average office building with modern commercial aircraft where about 50 percent of air is recirculated at any one time, there’s a total change about every three minutes, and HEPA filters are used! AskThePilot, a great site for all things airline)

A return-to-work readiness strategy suggested here by a Harvard Medical epidemiologist whose main area is TB spread are germicidal UV lights high in the room to catch the viruses that go up, then down. UV light for sanitization and disinfection is a technology used for several years to disinfect patient care areas (PurpleSun is one). Far-UVC, versus near-UVC, and potential uses are outlined in this Nature article from February 2018.  Harvard Gazette

Post-COVID back to work: for workplace screening, testing, contact tracing, there’s an app for that

May 19, 2020 | by

If you’re looking forward to going back to the office without the children and the dog barking, and seeing people other than your family, don’t expect to go back to “The Office” Normal with kibitzing over the divider and in the kitchen/break room. Chances are the latter will be locked, and the nearest person over the divider will be six feet away. There will not only be serious physical changes to the office, starting with many fewer people there, but also apps to track your health and who you come in contact with. Your employer will be managing your potential risk for infection of yourself and others.

  • UnitedHealth Group and Microsoft’s ‘ProtectWell’ app will screen your health everyday (using Microsoft’s COVID-19 triaging Healthcare Bot and Azure. If there’s a risk of exposure or if you are exhibiting symptoms, it will direct you to a COVID-19 testing process that enables closed-loop ordering and reporting of test results directly back to employers, managed (of course) by UnitedHealth. The app will also provide guidelines and resources for a safer work environment, including physical distancing, personal hygiene, sanitation, and more. UHG and Microsoft are furnishing the app to employers at no charge. UHG has already implemented this ‘contact tracing lite’ for frontline workers and will roll out to its over 320,000 employees; Microsoft will do the same for its US-based workers. Release
  • Enterprise software company Appian released Workforce Safety and Readiness, an app to enable HR departments to plan and maintain a return to work for employees and to maintain a safer workplace. This ’employee re-entry’ app as their CEO Matt Calkins put it, is not for every company. The app will quiz employees on factors such as health data, possible virus exposures, and details about their jobs to determine when and how they should return, based on their jobs plus CDC and state guidance, both of which keep shifting; state and local guidance in particular is keeping more than one law firm quite busy. The app can then push information to workers about their new hours, area, and similar. When the employee is back to work, they can then use the app to provide feedback on crowding and lack supplies such as hand sanitizer or wipes. The app is built on a HIPAA-compliant system and originated with a self-reporting disease app. Appian is targeting larger companies with thousands of employees on a $5,000 per month subscription model. Appian page, The Protocol
  • Companies large and small have devised their own mass testing procedures for current workers and those returning, as early as the next two weeks. This next article from Protocol details several approaches, mostly around detecting the imminently ill.
  • PWC has already set up a contact tracing system for returning workers, an app that tracks contacts with the phones of others of a person who self-reports being ill. While the privacy seems pretty robust–it works on employee self-reporting and his or her AD ID on my phone, then all the other phones it had contact with over the past X days via Bluetooth. As PWC’s David Sapin of their connected solutions area put it, “But if you’re going to come back into the workplace, you need to accept having this type of app on your phone.”
  • For a really dystopian view, see this article in Bloomberg. You may be scanned thermally, have an elevator operator (back to the past!), and lots and lots of sensors monitoring your comings and goings. Facilities departments will be retrofitting for anti-microbial surfaces and plexiglass guards. Before you are allowed to return, if you are allowed to return, you may be pre-assessed for risk before you are allowed to, with bonus point for antibodies. And when you’re back in your ‘six feet office’, you’ll have many more rules governing daily desk coverings, how you interact with your colleagues, walk in the hall, go to the bathroom. Hint: buy acrylic polycarbonate manufacturer stock. ZDNet

Of course, one wonders if Unintended Consequences will be to very firmly establish a remote workforce, which is anathema to some companies, or encouraging further outsourcing of work to offshore entities.

News roundup: Walgreens Boots-Microsoft, TytoCare, CVS-Aetna moves along, Care Innovations exits Louisville

January 17, 2019 | by

Walgreens Boots finally does something. Their teaming with Microsoft to migrate their IT infrastructure to the Azure platform will eventually lead to “more personalized care experiences from preventative self-care to chronic disease management. WBA will leverage the cloud for wellness and lifestyle management programs.” It was important enough to both companies to have a photo op with twin CEOs: Walgreens Boots’ Stefano Pessina and Microsoft’s Satya Nadella. The ‘consumerization of healthcare’ and ‘transforming healthcare delivery’ phrases liberally sprinkled throughout the article and the press release are today’s prevalent clichés, as ‘synergy’ was the buzzword of say, 1999. Healthcare IT News, CNBC  In the long run, this IT overhaul may actually mean more to their customers than, say, the Amazon-JP Morgan-Berkshire Hathaway hydra.

A vote of confidence in diagnostic telehealth pioneered by young Israeli company TytoCare. They added $9 million to their Series C from investors including Sanford Health, Itochu and Shenzhen Capital Group (and its affiliates). This adds to last year’s round led by Ping An Global Voyager Fund for a total Series C of $33.5 million. TechCrunch. TytoCare also was named one of Wired’s Best of CES (CBS TV video, at 1:35) and earlier this month announced the integration of Health Navigator’s symptom checker into their system.

The judge says ‘No Delay For You’! In the CVS-Aetna hearing, Federal Judge Richard Leon refused to give the Department of Justice any more time to submit comments in the CVS Health and Aetna merger case. The deadline remains 15 February despite the government shutdown furloughing much of the antitrust division. Judge Leon is reviewing the decree under the Tunney Act requirement that the merger meet the public interest. Healthcare Finance

Care Innovations ankles Louisville. A modest and mainly paywalled item in Louisville Business First may point to something larger at Care Innovations. After two years of operation and a much-touted expansion to one of Louisville’s better addresses, the telehealth/RPM company has quietly vacated its 7,200 square foot space at Brown & Williamson Tower and pulled its operations from the city. Reporters from the publication were unable to obtain a statement from Care Innovations, which is now in Folsom, California, closer to majority owner Intel. At the time of their Louisville expansion in April 2017 (still on their website), Care Innovations received a $500,000 KBI tax incentive to create 24 high-paying jobs, which now are departed. It is ironic as Louisville is a health hub dominated by insurer Humana but has successfully campaigned for health tech. Last July [TTA 17 July], CI sold its Validation Institute and their VA win disappeared from their website. Of late, there has been no news from the one-time Intel-GE partnership.

News roundup: Walmart and Microsoft AI, are derm apps endangering public with 88% skin cancer diagnosis?

July 19, 2018 | by
[grow_thumb image=”https://telecareaware.com/wp-content/uploads/2017/12/Lasso.jpg” thumb_width=”150″ /]Walmart and Microsoft partner to change the retail experience via AI. The five-year agreement will switch over applications to the cloud and will affect shipping and supply chain. It’s projected in Healthcare Dive that the impact will be in healthcare as well. Microsoft announced last month that it is forming a unit to advance AI and cloud-based healthcare tools. The landscape is under extreme pressure in retail and healthcare delivery, and Walmart needs to ready for future moves which will certainly happen. Walmart is rumored to be interested in acquiring Humana and is currently working with Emory Healthcare in Atlanta. Then there is CVS-Aetna, Cigna-Express Scripts, Google, and (looming above all) Amazon. (Though you can tuck all the years of Amazon’s profits into one year of Walmart’s.)

The ITV News headline grabs attention — but are dermatology apps really endangering the public when teledermatology can help diagnose 88 percent of people with skin cancer and 97 percent of those with benign lesions? A University of Birmingham-led research team did a metastudy of the literature and found three failings: “a lack of rigorous published trials to show they work and are safe, a lack of input during the app development from specialists to identify which lesions are suspicious and flaws in how the technology analyses photos” particularly for scaly or non-pigmented melanomas. But did access to these apps encourage early diagnosis which can lead to up to 100 percent five-year survival? Of course review is required as recommended by the study, but this last factor was not really examined at the British Association of Dermatologists’ annual meeting in Edinburgh. University of Birmingham release with study abstract

Google’s ‘Medical Brain’ tests clinical speech recognition, patient outcome prediction, death risk

June 28, 2018 | by | 2 Comments

Google’s AI division is eager to break into healthcare, and with ‘Medical Brain’ they might be successful. First is harnessing the voice recognition used in their Home, Assistant, and Translate products. Last year they started to test a digital scribe with Stanford Medicine to help doctors automatically fill out EHRs from patient visits, which will conclude in August. Next up, and staffing up, is a “next gen clinical visit experience” which uses audio and touch technologies to improve the accuracy and availability of care.

The third is research Google published last month on using neural networks to predict how long people may stay in hospitals, their odds of re-admission and chances they will soon die. The neural net gathers up the previously ungatherable–old charts, PDF–and transforms it into useful information. They are currently working with the University of California, San Francisco, and the University of Chicago with 46 billion pieces of anonymous patient data. 

A successful test of the approach involved a woman with late-stage breast cancer. Based on her vital signs–for instance, her lungs were filling with fluid–the hospital’s own analytics indicated that there was a 9.3 percent chance she would die during her stay. Google used over 175,000 data points they saw about her and came up with a far higher risk: 19.9 percent. She died shortly after.

Using AI to crunch massive amounts of data is an approach that has been tried by IBM Watson in healthcare with limited success. Augmedix, Microsoft, and Amazon are also attempting AI-assisted systems for scribing and voice recognition in offices. CNBC, Bloomberg

Can unused “TV white spaces” close the rural and urban broadband–and telehealth–gap?

August 22, 2017 | by

[grow_thumb image=”https://telecareaware.com/wp-content/uploads/2017/08/Radio-tower.jpg” thumb_width=”100″ /]The digital divide comes one step closer to closing. Microsoft’s release of its white paper proposing an alternative to the expensive build-out of the US broadband network deserved more attention than it received in July. The Rural Broadband Strategy combines TV white spaces spectrum (the unused UHV television band spectrum in the 600 MHz frequency range which can penetrate through walls, hilly topography, and other obstacles) with fixed wireless and satellite coverage to economically deliver coverage to un/under-served areas versus fiber cable (80 percent savings) and LTE fixed wireless (50 percent).

34 million Americans lack broadband connection to the internet. Some of these are voluntary opt-outs, but 23.4 million live in rural areas without access, with huge economic consequences estimated in the hundreds of billions. TV white spaces can also expand coverage in small cities and more densely populated areas, including usages such as within buildings. This effort also presses the FCC, which in turn has pressed for broadband for two decades, to ensure that at least three channels below 700 MHz are kept unlicensed in all markets in the US, with more TV white spaces for rural areas.

The first part, the Rural Airband Initiative, builds on Microsoft’s present 20 programs worldwide, and is planned to connect 2 million people in by July 4, 2022, with 12 projects across the US running in the next 12 months. Much of the connectivity is dedicated to nonprofit efforts like 4-H’s digital literacy program and ‘precision agriculture’ in New York State and Washington. Microsoft is also granting royalty-free access to 39 patents and sample source code related to white spaces spectrum use in rural areas.

A positive move for telehealth’s spread. Rural healthcare providers pay up to three times as much for broadband as their urban counterparts. Telemedicine increasingly connects for consults between hospitals in rural areas and city-based health systems for specialty coverage and to provide assistance in specialized medical procedures. Telemedicine and telehealth remote monitoring has difficulty spreading with poor internet coverage; this has already been a barrier to patients in rural ACOs who can be 1-2 hours from the doctor’s office and notably for the VA in providing rural veterans with home telehealth support. Paramedics increasingly rely on internet connections and dropped connections lead ambulances to go to hospitals at a greater distance. If the FCC cooperates and Microsoft’s partners can find a way to profitably execute, broadband can finally achieve that promise about closing the ‘digital divide’ made back in the Clinton Administration. A Rural Broadband Strategy: Connecting Rural America to New Opportunities  The Verge, mHealth Intelligence, Becker’s Hospital Review

Petya no pet as it spreads: is it ransomware or a vicious design for data destruction? (updated)

June 28, 2017 | by

Breaking–The ‘more and worse’ experts predicted after WannaCry is here.  In two days, the Petya or PetyaWrap (or NotPetya) ransomware has spread from Ukraine to affect organizations in 64 countries with 2,000+ attacks involving 12,000+ machines. On the hit list are mostly Eastern European and trans-national companies: Maersk shipping, Merck, Nuance cloud services, WPP advertising, Mars and Mondelez foods, Rosneft (Russia’s largest oil producer), Chernobyl, unnamed Norwegian firms, Beiersdorf and Reckitt Benckiser in India, Cadbury and law firm DLA Piper in Australia. One local US healthcare provider affected in a near-total shutdown of their computer systems, and resorting to backups, is Heritage Valley Health System in western Pennsylvania. There are no reports to this hour that the NHS, major US, Asia-Pacific, or European health systems being affected. Update: Trading in FedEx shares were halted 29 June due to the Petya attack on its TNT Express international division. Update 30 June: The Princeton Community Hospital in rural West Virginia is running on paper records as Petya forced a complete replacement of its EHR and computer hardware. Fox Business

Like WannaCry, the ransomware exploited the EternalBlue backdoor; a report from ArsTechnica UK adds an exploit touchingly dubbed EternalRomance. But unlike WannaCry, according to ZDNet, both “Symantec and Bitdefender have confirmed that it’s a Petya ransomware strain dubbed GoldenEye, which doesn’t just encrypt files — it also encrypts hard drives, rendering entire computers useless.” ArsTechnica goes deeper into methodology. Petya uses a hacking tool called MimiKatz to extract passwords and then uses legitimate Microsoft utilities and components to spread it. (Ed. note: if you have time for only one technical article, read ArsTechnica’s as the latest and most detailed.)

The Microsoft patch–and Microsoft has just issued an update for Win10, which this Editor heartily recommends you download and install–while defending against WannaCry, still isn’t preventing the spread. It’s speedier than WannaCry, and that says a great deal. Its aim appears not to be ransom, but data destruction. Updated: this POV is confirmed in today’s ZDNet article confirming that Comae Technologies and Kaspersky Lab strongly believe that Petya is a ‘wiper’ designed to destroy data by forever blocking it on your hard drive.

Another article in ZDNet (Danny Palmer) attempts to isolate why hackers remain one step ahead of us:

Law enforcement agencies and cybersecurity firms across the world are investigating the attack – and researchers have offered a temporary method of ‘vaccinating’ against it** – but how has this happened again, just six weeks on from a previous global ransomware outbreak?

One reason this new form of Petya is proving so effective is due to improved worm capabilities, allowing it to spread across infected networks, meaning that only one unpatched machine on a whole network needs to become infected in order for the whole operation to come crashing down.

Not only that, but cybersecurity researchers at Microsoft say the ransomware has multiple ‘lateral movement’ techniques, using file-shares to transfer the malware across the network, using legitimate functions to execute the payload and it even has trojan-like abilities to steal credentials.

**  The inclusion of this link in the quote does not imply any recommendation by TTA, this Editor, or testing of said fix.

What you can do right now is to ensure every computer, every system, you own or are responsible for is fully updated with Microsoft and security patches. If you’re in an enterprise, consult your security provider. Run backups. Remind employees to not click on links in suspicious messages or odd links even from known senders–and report them immediately. Based on reports, phishing emails and watering hole attacks are the main vectors of spread, like WannaCry. (A suggestion from this Editor–limit web search to reputable sites, and don’t click on those advert links which are buggy anyway!) Be judicious on updates for your software except by Microsoft and your security provider; there is growing but still being debated evidence that the initial Ukrainian spread was through a hacked update on a popular tax accounting software, MeDoc. More on this in ZDNet’s 6 Quick Facts. Another suggestion from Wired: run two anti-virus programs on every computer you have, one free and one paid.

And no matter what you do–don’t pay the ransom! The email provider within hours blocked the email so that the payment cannot go through. Updates to come. More reading from Bleeping Computer, Healthcare IT News, CNBC, HIStalk, US-CERT, Fortune, Guardian,

Updated 15 May: 20% of NHS organizations hit by WannaCry, spread halted, hackers hunted

May 15, 2017 | by

Updated 15 May: According to the Independent, 1 of 5 or 20 percent of NHS trusts, or ‘dozens’, have been hit by the WannaCry malware, with six still down 24 hours later. NHS is not referring to numbers, but here is their updated bulletin and if you are an NHS organization, yesterday’s guidance is a mandatory read. If you have been following this, over the weekend a British specialist known by his/her handle MalwareTech, tweeting as @malwaretechblog, registered a nonsensical domain name which he found was the stop button for the malware as designed into the program, with the help of Proofpoint’s Darien Huss.

It looks as if the Pac-Man march is over. Over the weekend, a British specialist known as MalwareTech, tweeting as @malwaretechblog, registered a nonsensical domain name which he found was the stop button for the malware, with the help of Proofpoint’s Darien Huss. It was a kill switch designed into the program. The Guardian tagged as MalwareTech a “22-year-old from southwest England who works for Kryptos logic, an LA-based threat intelligence company.”

Political fallout: The Home Secretary Amber Rudd is being scored for an apparent cluelessness and ‘wild complacency’ over cybersecurity. There are no reported statements from Health Secretary Jeremy Hunt. From the Independent: “Patrick French, a consultant physician and chairman of the Holborn and St Pancras Constituency Labour Party in London, tweeted: “Amber Rudd is wildly complacent and there’s silence from Jeremy Hunt. Perhaps an NHS with no money can’t prioritise cyber security!” Pass the Panadol!

Previously: NHS Digital on its website reported (12 May) that 16 NHS organizations have been hacked and attacked by ransomware. Preliminary investigation indicates that it is Wanna Decryptor a/k/a WannaCry. In its statement, ‘NHS Digital is working closely with the National Cyber Security Centre, the Department of Health and NHS England to support affected organisations and ensure patient safety is protected.’ Healthcare IT News

According to cybersecurity site Krebs on Security, (more…)