TTA Celebrates USA 250! Midjourney’s body scanner promises a revolution and Butterfly a future? Hype or reality? And more!

July 2, 2026 | by

2 -6 July 2026

An early close for a very big holiday this weekend–the 250th anniversary of United States Independence, a/k/a The Rebel Colonials Serving It Up Hot To King George III. And the UK and Europe returned this weekend’s 100 degree F temps (38 C) as a present…

Speaking of presents…our one story this week is a very deep dive into Midjourney Medical’s ‘magical’ whole-body scanner and the Butterfly Network ultrasound chips powering it. The Midjourney agreement is a substantial present to a once-promising POCUS company that was almost KO’d by the Devil of Demise after a cracked SPAC. Is it a future that Butterfly can bet on, or just another bridge to cross?

Set off fireworks (safely), drink up like a colonial, and stay cool!

Please feel free to comment on the articles and pass along this Alert. Let me know if this is worth it to you! Also check out my personal page on Substack.

Midjourney Medical audaciously promises a revolution in whole-body scanning, powered by Butterfly Network chips. Can the reality ever match the hype?

Last Week’s Headlines, from Cargo Culture to OpenEvidence   

Chutes & Ladders: Xsolis data breach affects 1.4M records, Five Eyes warns of AI-supercharged hacking; FDA closes Whoop BP warning, Centene adds HR/finance exec to board; $120M raises for Assort Health, $46M for xCures

Vinegary Must Reads This Week: Silicon Valley’s ‘Cargo Culture’; the clinical query tool explosion between OpenEvidence and general AI

Short takes: Bain report on anemic AI ROI, SVB report on women’s health, Ladder Health pedes virtual health raises $7M, an update on the Luigi Mangione trial

Amazon’s One Medical Seniors hacked by ShinyHunters, issues “final warning” on 8.8 TB of patient data

News roundup: Validic bought by ChartSpan; raises for Cadence, Prosper AI, Telepatia; Epic MyChart portal messages doubled in 5 years–study    

Perspectives: The most aggressive AI adoption in healthcare is happening off the books

Catch up with these if you haven’t

Chutes, and chutes: Microsoft’s $3B Oracle cloud leasing deal goes sideways, Defense Health Agency to replace Leidos as system integrator for MHS’ EHR, Centene offering voluntary buyouts to most employees

Tuesday 23 June–UKTelehealthcare webinar/virtual event: Keeping People at Home, Supported by Technology (this is now available on video–check the UKTelehealthcare website and LinkedIn)

Perspectives: Virtual Care, AI, and the Future of Autism Therapy

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Support not only a publication but also a well-informed international community.

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Help Spread the News

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Donna Cusano, Editor In Chief
donna.cusano@telecareaware.com

Telehealth & Telecare Aware – covering news on latest developments in telecare, telehealth and eHealth, worldwide.

TTA’s Here Comes Summer: two data breaches and a warning, six raises, Validic bought, Silicon Valley’s ‘Cargo Culture’, OpenEvidence scored in study, ‘off the books’ AI in healthcare, more!

June 26, 2026 | by

 

Friday 26 June 2026

Summer started and the doldrums lifted. We have not one but two data breaches with a big warning from Five Eyes that AI-powered breaches are coming. Six raises from seed to Series C–including in Brazil–and Validic after many years is bought. But scrutiny is piling on AI and AI clinical tools, from the economics to Silicon Valley ‘Cargo Culture’ to OpenEvidence’s performance to ‘off the books’ AI in healthcare. We also touch on the current status of the Luigi Mangione NY State trial, 18 months after the murder of UHC’s Brian Thompson.

Please feel free to comment on the articles and pass along this Alert. Let me know if this is worth it to you! Also check out my personal page on Substack.

Chutes & Ladders: Xsolis data breach affects 1.4M records, Five Eyes warns of AI-supercharged hacking; FDA closes Whoop BP warning, Centene adds HR/finance exec to board; $120M raises for Assort Health, $46M for xCures

Vinegary Must Reads This Week: Silicon Valley’s ‘Cargo Culture’; the clinical query tool explosion between OpenEvidence and general AI

Short takes: Bain report on anemic AI ROI, SVB report on women’s health, Ladder Health pedes virtual health raises $7M, an update on the Luigi Mangione trial

Amazon’s One Medical Seniors hacked by ShinyHunters, issues “final warning” on 8.8 TB of patient data

News roundup: Validic bought by ChartSpan; raises for Cadence, Prosper AI, Telepatia; Epic MyChart portal messages doubled in 5 years–study    

Perspectives: The most aggressive AI adoption in healthcare is happening off the books

Last Week’s Headlines

Chutes, and chutes: Microsoft’s $3B Oracle cloud leasing deal goes sideways, Defense Health Agency to replace Leidos as system integrator for MHS’ EHR, Centene offering voluntary buyouts to most employees

Tuesday 23 June–UKTelehealthcare webinar/virtual event: Keeping People at Home, Supported by Technology (this is now available on video–check the UKTelehealthcare website and LinkedIn)

Perspectives: Virtual Care, AI, and the Future of Autism Therapy

 * * *
Advertise on Telehealth and Telecare Aware
Support not only a publication but also a well-informed international community.

Contact Editor Donna for more information.

Help Spread the News

Please tell your colleagues about this free news service and, if you have relevant information to share with the rest of the world, please let me know!

Donna Cusano, Editor In Chief
donna.cusano@telecareaware.com

Perspectives: The most aggressive AI adoption in healthcare is happening off the books

June 23, 2026 | by

TTA has an open invitation to industry leaders to contribute to our Perspectives non-promotional opinion and thought leadership area. Today’s topic concerns how unapproved ‘off the books’ AI tools, also known as ‘shadow AI’, are becoming widespread in healthcare organizations. Difficult to track, they may save an individual’s valuable time but open the organization to data breaches and misuse of private data. The author, Errol Weiss, is chief security officer of Health-ISAC (Health Information Sharing and Analysis Center). His information security experience includes the NSA and senior positions at Citigroup and Bank of America. Health-ISAC is a non-profit organization based in Orlando, Florida that is dedicated to protecting the global health sector from cyber and physical threats through real-time alerts, collaboration, and usable intelligence.

Ask a hospital executive how their AI adoption is progressing, and you’ll hear about pilot programs, governance committees, and carefully vetted vendor deployments.

While illustrative, that answer is incomplete because most healthcare organizations have little visibility into how much AI is actually being used without approval. Clinical staff, administrators, and operations teams are independently adopting AI tools to draft documentation, optimize scheduling, assist with coding, and communicate with patients without waiting for approval.

There’s little point in blaming them: With technology advancing at a breakneck pace, today’s state-of-the-art will be obsolete next month. Who has the time to wait for months-long review processes?

For at least the past 40 years, whenever employees found IT’s procurement bureaucracy too slow, they simply implemented or signed up for software or cloud services by sidetracking corporate procedures and got on with their work. This is known as “shadow IT”, and organizations have come up with entire playbooks and best practices to limit its effects.

But its successor, “shadow AI”, requires a different approach simply because this new revolution in technology doesn’t work the same way as most software does. It doesn’t help that shadow AI usage is already widespread: A December 2025 Wolters Kluwer survey of more than 500 healthcare professionals found that 40 percent had encountered unauthorized AI tools in their workplace, nearly one in five admitted to using them, and one in ten had used an unauthorized tool for direct patient care.

Why governance keeps losing the race

The fact is, the people using these tools are behaving rationally. Healthcare staff operate under continuous and heavy workloads, so if a tool cuts a two-hour documentation task to 40 minutes, you’re fighting a losing battle if you expect employees to ignore the benefits of AI. Per the Wolters Kluwer data, half of those using unapproved tools cited faster workflows as their primary reason, and a quarter pointed to better functionality than anything their employer had sanctioned.

Meanwhile, the institutional approval machinery moves at its own pace. Enterprise approval channels were designed for software whose deployment cycles took quarters, and accounted for contracts, security reviews, and integration planning. A consumer AI tool requires a browser and an email address.

This is harder to contain than shadow IT ever was

Shadow IT, for all its headaches, could at least be tracked. An employee signing up for an unapproved file-sharing service needed to create an account and upload a file, leaving a trail security teams could identify and act on. Network telemetry and endpoint management tools like EDR could be used to track data stored on shadow IT devices. The behavior looked similar for most tools, so organizations eventually built the muscle to spot it. 

In contrast, AI tools encourage different user behavior because they work differently — the user interface is more conversational, dynamic and useful in different ways. Staff who would never think to upload a patient’s file to a third-party service may not feel so hesitant about typing a patient’s diagnosis into a chatbot because it doesn’t register as a data transfer; it registers as asking for help.

Regardless, the compliance risk and data exposure are similar. When information about a patient is uploaded to an AI model not constrained by a contractual agreement, the organization has no control over where that data is sent, how long it is stored, and whether it will be used to train future tools and AI models. There is no file to retrieve and no audit trail to close.

The costs are real: IBM’s most recent breach research found that shadow AI added an average of $670,000 to breach costs, and healthcare already carries the highest breach costs of any sector.

Govern the current instead of damming it

What can leaders do to keep shadow AI usage under control? One obvious answer is to flat-out ban such tools, but the problem with doing that without offering alternatives is that employees will find other ways to use them. It also turns compliance teams and clinical staff into adversaries, which is the exact opposite of what an organization wants to accomplish.

It’s more useful and realistic to establish a governance framework that gives this energy a sanctioned channel. Here are a few steps to consider:

  • First, get the lay of the land. Map where and how much shadow AI your organization has.
  • Next, build a process that lets clinical and administrative teams submit AI tools for review and receive a decision much faster — think days, not weeks.
  • Pair this with a clear policy definition of shadow AI, and educate your employees on why a consumer chatbot and an approved enterprise tool are not interchangeable.

Vendors and contractors are a part of this problem, too. They move through many hospital workflows and touch patient data, leaving the hospital organization to own the compliance exposure regardless of whose employee created it. Vendor assessments and contracts must change to account for how AI tools affect end-user behavior and control what data leaves your supply chain.

Thankfully, no organization needs to solve all these problems alone. Through information-sharing communities, security teams can compare and share notes on how their peers are detecting unsanctioned AI use, and which governance models hold up under real conditions.

Shadow AI grows because there’s a gap between what staff need and what the organization provides. That gap widens every month that governance stands still. Leaders must act now to shape the gap. Those who wait will eventually be mapping it from breach forensics instead.

Holiday weekend roundup: VA asks for ‘cyberspeed’ 25% EHR budget bump, update on EHRM fraud indictment; Commure raises $70M; Innovaccer buys Caduceus, lays off staff; Doximity, OpenEvidence slugfest gets hot

May 22, 2026 | by | 2 Comments

A slower news week preceding the Memorial Day holiday in the US and the UK late May bank holiday.

Federal budgets for 2027 are in the Congressional washing machine, and the cycle is on ‘agitate’. VA Secretary Doug Collins has tagged a 25% increase in the EHR Modernization budget for FY 2027 over what is currently in the 2027 Military Construction and Veterans Affairs Appropriations bill –$4.2 billion versus $3.4 billion, an increase of $840 million. He testified on Wednesday 20 May to the Senate Veterans’ Affairs Committee and Thursday 21 May to the House Appropriations Subcommittee on Military Construction, Veterans Affairs and Related. Apparently, the biggest problem VA has with the much-repaired and now standardized Oracle EHR is that every VA executive director wants it now, not later. An additionally funded EHRM would speed up the cutover for VA facilities to go from ‘dial-up’ to ‘cyberspeed’ internally, in communicating with other VA hospitals, community care, and in record sharing with the military system and civilian health facilities.

Difficulties reported to date (April for four sites in Michigan, VISN 10) are around transferring health records between VA and Department of War facilities. DoW healthcare also uses Oracle, but a different version suited for their needs that has been fully implemented. 

While the House has already passed the bill at the lower budget number and sent it to the Senate, the subcommittee chair John Carter (R-Texas) during the hearing said they’re “not through with the possibility of getting you some more money”. 

VA’s implementation timeline is 19 before the end of this year (13 new and the 2020-24 six), 26 new sites in 2027 and 28 VA Medical Centers in 2028. Even sped up, there are still 90 more to go and the deployment is not expected to be complete till 2031. FedScoop 21 May, 30 April

Update on the fraud indictment of the former EHRM director, John Windom. Surprisingly, there has been little to no mainstream media coverage of the Federal charges against John Windom, who was indicted on 25 March in the Federal District Court for the District of Columbia. The three counts related to accepting cash and gifts from vendors plus failure to report them could bring a maximum of 35 years. This article on conservative news website PJ Media is the most recent (re)telling of the tale and links to nearly all the same sources this Editor included in our 3 April article. It is more colorful than our reporting but brings up an important point I overlooked: where, oh where, are the indictments of some of the vendors who doled out cash, gifts, and maybe more, and in return got prime and sub-contracts. He knew, they knew to keep quiet–‘loose lips sink ships’. Because any Federal contractor–I worked for two, Viterion Digital Health and Collaborative Health Systems, then part of WellCare Health Plans–receives compliance training on working with their Federal agency counterparts. 

Perhaps there are investigations and indictments to come, as I’ve seen in Federal Medicare fraud cases that peel like an endless onion over years. According to the VA inspector general, Mike Missal, who served from 2016 until January 2025, evidence was being gathered internally back during the Biden administration. This fits the timeline of the US Attorney requesting a grand jury be summoned then sworn in on 30 October 2025. Mr. Missal was fired along with 16 other inspectors general by the incoming Trump administration.

Since Mr. Windom was deeply engaged in the choice of Cerner for the VA EHR in 2017-2018, and in the disastrous implementation of VA Mann-Grandstaff (VISN 20) in October 2020 and four more in 2022, resulting in the rollout’s termination in 2023, Oracle would be unwise to not prepare for a few questions about Cerner’s relationship with Mr. Windom, as I wrote at the time. 

The PJ Media article also references the comprehensive article in the 27 March Spokane Spokesman-Review, which has been on the Cerner/Oracle implementation story since the implementation failure in the region’s Mann-Grandstaff VA facility. Their check of the OEHRM website as of that date confirmed that Mr. Windom was still listed as the deputy director of the Federal Electronic Health Management Office, the joint VA-DOD initiative in the role he assumed in January 2022 after the Mann-Grandstaff problems detonated and the then-Secretary reorganized the department. (Heads did not roll, but they rarely do with SES members). FTA: “The Federal Electronic Health Record Modernization Office did not respond on Thursday (26 March) when asked if Windom remains employed there.” The article by Orion Donovan Smith is a recommended read.

In the funding/M&A department

Healthcare software integrator Commure received a $70 million funding from current investors. Commure’s lead investor is General Catalyst. Commure now has $750 million raised and a $7 billion post-money valuation for its AI infrastructure development. Its subsidiary, Athelas, provides AI-based revenue cycle management and clinical workflow tools. The General Catalyst funding of $200 million plus is an interesting scheme, in that GC fronts the cost of sales and marketing and, in return, receives a share of the revenue from new customers generated by that investment, up to a fixed cap. The new funding will be used for scaling its RCM and practice management platforms, advancing the ‘shared intelligence layer’ beneath Commure’s workflows, and expanding their AI infrastructure into global healthcare markets. Release, Mobihealthnews

Innovaccer acquires CaduceusHealth, a revenue cycle management (RCM) and management services (MSO) provider. Neither transaction cost nor management transitions were disclosed. Well-funded Innovaccer ($675 million through a Series F) has been growing in AI-centric healthcare IT services mainly through acquisition. CaduceusHealth is the fifth in their creating a “comprehensive agentic stack” for health systems and provider groups in their Flow suite. Innovaccer claims to serve over 200 health systems and payers, 95% of community pharmacies, and 80 million patient lives across the US. Release Unfortunately, their growth has been matched by a reduction in staff, with 340 layoffs in the US and India. It is their third layoff in four years as it applies its own AI to automate its own processes. (We are seeing a lot of this across the board, allegedly.) FierceHealthcare

We close with a major Must Read with the OpenEvidence-Doximity battle.

OpenEvidence and Doximity are slugging it out for the same market funding–and a third competitor has just sneaked into the ring. OpenEvidence is the upstart, founded four years ago, and the best valued ($12 billion) yet private healthcare AI company on the planet Earth and is generally thought of as the up-and-coming platform for physician information. Doximity is the mature company, public with a $3.6 billion market cap, proven revenue of $645 million, and (be still my heart) profitable with an EBIDTA margin of 55% and a stunning 49% free cash flow margin. It’s been dubbed ‘LinkedIn for doctors’ but is actually much more with tools for secure telehealth, news, reputation management, and free CME.

They are mutually litigious. Both OpenEvidence (OE) and Doximity tag-team each other in product offerings, use defamation tactics and key staff poaching, and in product development, copycat each other, with Doximity generally leading development and OE following shortly thereafter. Coming up is Doximity’s new product, an in-workflow e-prescribing, prosaically called Doximity Prescribe. Based on the pattern, how long will it be before OE develops a similar product?

Where they make their money is only indirectly from users. Both are supported by a fixed source–pharmaceutical advertising. They both slug it out for physician attention. While doctors love (or hate) both, if they become too similar, the balance will tip. Into this bout steps OpenAI with a new professional product, ChatGPT for Clinicians [TTA 30 April]. Lurking near the ropes is the AI-powered iteration of Wolters Kluwer’s UpToDate peer-reviewed medical content, integrated with Microsoft and Abridge, already in 70% of the largest enterprise health systems because it’s been around forever. OE’s vulnerability may be overpromising in claiming ‘no hallucinations’ of their AI-generated medical content–a claim that is structurally impossible, and results in deficits in completeness, communication quality, and systems-based safety reasoning.

Digging through all of this is the intrepid Sergei Polevikov on his Substack AI Health Uncut. Grab a cuppa and sandwich for this one. For most of the article (Part 1 of 2!), a subscription is required. Consider it money well spent for access to some of the best investigative reporting around with plenty of backup. OpenEvidence Prescribe Coming to Your Doctor’s Office This Month?

AI news: GE HealthCare’s 510(k) for Precision DL (+ GE stake sale), Samsung adopts care.ai for in-facility patient monitoring, Mayo Clinic-Google Cloud generative AI, Wolters Kluwer buys Invistics for drug diversion detection

June 8, 2023 | by

GEHC receives FDA clearance for Precision DL (deep learning) image processing software. It improves image quality on GEHC’s PET/CT, Omni Legend, which enables faster scanning time and improved small lesion detection. Deep learning as part of AI is a subset of machine learning (ML), which uses a neural network with three or more layers that simulates the human brain in processing and ‘learning’ from large amounts of data and drawing judgments from it. (See our recent Perspectives for a more nuanced explanation.)  According to GEHC’s presentation brochure on Precision DL, it is trained with thousands of PET images made using multiple reconstruction methods. Mobihealthnews

GEHC was spun off from parent General Electric (GE) in January. GE retained about 19% of its stock at the time with the remaining being distributed to GE shareholders, but on Monday announced that it would sell 25 million shares, or about $2 billion in value, in a debt-for-equity exchange. The debt is held by affiliates of Morgan Stanley which would then receive the stock, which has done well. This would reduce GE’s stake in the spinoff considerably.  Reuters, Yahoo Finance

Samsung partnering with care.ai for facility ‘smart care’. Orlando-based care.ai’s Smart Care Facility Platform monitors for conditions and learns from patient behaviors. It can be used for infection prevention and control, patient and protocol monitoring, workforce optimization, and virtual care. The AI-powered platform will be integrated into Samsung displays for clinician use, including virtual care. The system will be utilized in hospitals, nursing homes, and care facilities. care.ai release, 

Mayo Clinic is also jumping on the AI bandwagon with Google Cloud. Google Cloud’s Enterprise Search in Generative AI App Builder (Gen App Builder) will be used to make it easier for clinicians and researchers to find the information they need and improve the efficiency of clinical workflows to ultimately improve patient outcomes. According to the release, Enterprise Search in Gen App Builder unifies data across dispersed documents, databases, and intranets, making it easier to search, analyze, and identify the most relevant results. Mayo is an early adopter of the system. Google Cloud release  

Wolters Kluwer Health has acquired Atlanta-based Invistics. Invistics’ Flowlytics tracks medication in hospitals and other patient care settings through ML-based systems. The most critical ‘hot button’ use is for detecting drug diversion, which is when a healthcare worker illegally obtains or uses prescription drugs intended for a patient. This is done by reconciling drug transactions from purchase to patient, with their system being used to rapidly and accurately identify patterns of behavior consistent with drug diversion. More routine usage is for automating controlled substance compliance. This will fit in with Wolter Kluwer’s existing products Simplifi+ and Sentri7 in their Clinical Surveillance, Compliance & Data Solutions unit. Information on transaction cost and management transitions were not disclosed. Release

Hat tip to HIStalk’s new AI News feature 7 June for both Mayo-Google Cloud and WK-Invistics.

‘F for Fake’ in peer-reviewed journals

January 15, 2014 | by

F for Fake was the film master Orson Welles’ last released film; it was a small documentary on the art forger Elmer de Hory, with a side serving of Clifford Irving (the author of the fake Howard Hughes autobiography), and explored the nature of authorship and authenticity. We now have a burgeoning ‘F for Fake’ scandal in peer-reviewed open-access scientific journals which can’t–or won’t –detect bogus research. A Science Magazine (American Association for the Advancement of Science–AAAS) journalist, John Bohannon, drafted a ‘spoof’ paper which was submitted to 304 peer-reviewed, open-access journals. It detailed the anticancer qualities of a chemical derived from lichen. Despite the complete fabrication of the discovery, the researcher and his university  (more…)