AI Gets Its MD: Why More Docs Are Prescribing Algorithms (and What It Means for You)

Good morning, ! This week we’re diving into the U.S Health Insurance Market, physicians increasing belief in AI tools, top strategic concerns for healthcare executives over the next 10 years, and hypertension prevalence and coverage by region.Want to advertise in Healthcare 150? Check out our self-serve ad platform, here.

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— The Healthcare150 Team

DATA DIVE

Insurance in Recalibration Mode

The U.S. health insurance sector is bracing for a profitability reset. The uninsured rate rose from 7.6% to 8.2% in 2024, reversing pandemic-era gains and spotlighting renewed affordability and eligibility challenges — particularly from Medicaid redeterminations. Pediatric coverage erosion (from 3.9% to 5.1%) and growing uninsured rates among working-age adults (from 10.9% to 11.6%) add pressure to hospitals and commercial insurers alike.

At the same time, global non-life premium growth is decelerating — from 4.7% in 2024 to 2.3% by 2026 — as inflation cools and underwriting normalizes. Mature markets like North America are hitting saturation, while emerging markets maintain momentum, albeit with rising capital constraints.

Group insurance is also plateauing. Life and disability products are shifting from expansion to margin preservation, favoring carriers that can deliver product differentiation, pricing discipline, and embedded distribution.

Investor takeaway: Volume-led growth is over. The edge now lies in underwriting agility, ACA market exposure, and tech-led risk stratification. Firms that can absorb volatility — and monetize it — will lead the next cycle.

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TREND OF THE WEEK

Workforce Worries Eclipse Tech Hype

In a recent Bain survey of healthcare executives, 29% cited workforce shortage as the top strategic concern for the next decade—more than any other issue, including financial stability (17%) and patient experience (14%).

Despite the industry buzz around AI and digital health, only 8% flagged technology as a primary concern. Access to care came in at just 12%, and 20% of responses fell into the "Other" category—signaling a fragmented concern landscape beyond the top few.

Why it matters: For investors and operators, the message is clear: staffing is the choke point. Talent gaps—not tech gaps—are what threaten scalability, margins, and care delivery over the next 10 years. That means workforce-focused solutions—automation, labor platforms, clinical productivity tools—may be the real growth stories in a sector too often distracted by shiny software. (More)

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HEALTHTECH CORNER

Efficiency Over Everything

AI has officially graduated from pilot project to productivity engine. 75% of physicians now believe AI improves work efficiency, up from 69% last year. Optimism is also rising around clinical outcomes (62%) and patient safety (56%) — clear signs that the sector’s skepticism is giving way to performance metrics.

But the enthusiasm stops at patient privacy: only 15% see AI as helpful there. Translation: doctors love what AI does for their schedules, not their security teams. The new narrative? AI isn’t a “tech upgrade” — it’s a labor multiplier, reallocating budget from vacant headcount to algorithmic efficiency.

The takeaway: in healthcare, efficiency now beats ethics in the AI adoption curve — at least for now. (More)

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DEAL OF THE WEEK

Private Equity’s $9B Exit Drug

Thermo Fisher Scientific just bet up to $9.4B that data is the new drug. It’s acquiring Clario, a private equity-backed software firm that crunches clinical trial endpoint data—the vital signs of pharma R&D. Clario supports 70% of FDA approvals, and its tech fits like a missing puzzle piece next to Thermo’s PPD CRO platform. This deal is less about scale and more about digital dominance: Thermo’s pairing lab work with Clario’s digital brain to fast-track drug pipelines. PE shops Astorg and Nordic Capital exit with a healthy return—and a future earnout of up to $400M. Thermo gets a business expected to hit $1.25B in revenue next year. In other words: it’s no longer enough to run the trial—you’ve got to own the data stream. (More)

REGIONAL FOCUS

Obesity Is the New Majority

The UK is getting heavier, and the data isn’t subtle. By 2040, 21 million adults are forecast to live with obesity, making them a larger population than those at a healthy weight. That’s 36% of UK adults—or, to frame it differently, a future where health risks become the norm, not the exception.

Meanwhile, hypertension is playing global hide-and-seek, with 1 in 3 adults showing signs, yet effective treatment rates remain dismal, especially across Africa, Southeast Asia, and the Eastern Mediterranean. The implication? Global health systems are gearing up for chronic conditions they’re still not equipped to handle. If investors are still underwriting around a “healthy” middle, it may be time to recalibrate the curve. (More)

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