$110 Million In New Funding For AI Helping Hospitals Address Acute Labor Shortage
Israel-based Aidoc announced today a $110 million Series D round investment, bringing its total funding to $250 million. The round, co-led by TCV and Alpha Intelligence Capital (AIC), with participation from CDIB Capital, will help the startup expand the reach of its Aidoc AI Care Platform beyond the over 1,000 hospitals and health centers it already serves.
With 15 FDA-cleared clinical solutions, the Aidoc platform operates as an intelligent layer on top of hospitals’ IT systems, offering physicians a centralized platform to address all the care points, across the health system. The platform’s AI algorithms deliver actionable insights derived from imaging data and electronic medical records. This allows physicians to manage larger patient volumes by reducing time to treatment, shortening length of stay in the ED and capturing more patients requiring advanced treatments.
Hospitals today face growing labor shortages. Consider this:
· 18% of health care workers have quit their jobs during the COVID-19 pandemic, while another 12% have been laid off.
· Among health care workers who have kept their jobs during the pandemic, 31% have considered leaving.
· In five years, the U.S. healthcare labor shortage is projected to reach 3.2 million workers.
· 47.5% of all registered nurses (RNs) in the U.S. are now over the age of 50 and 1.2 million new RNs will be needed by 2030.
· The World Health Organization (WHO) estimates that by 2030 there will be a shortage of more than 18 million health care workers worldwide.
· U.S. hospitals’ operating margins remained in the red for a fourth consecutive month in April 2022.
Aidoc announced recently an agreement with New Jersey’s Atlantic Health System which rolled out Aidoc’s AI solution to several hospitals within its vast network. Physicians at Atlantic Health use Aidoc’s platform to triage patient CT scans and receive alerts notifying them of critical situations, such as potential brain bleeds, cervical spine fractures, blood clots in the lungs, rib fractures, and bowel injury, expediting care when every second counts. These AI tools help physicians keep pace with increasing demands while maintaining high quality outcomes.
This Practical AI solution from Aidoc is part and parcel of the digital transformation of healthcare. Spurred by the increased digitization of medical records, healthcare’s share of all the data created worldwide in 2020 amounted to 21 zettabytes or 21 trillion gigabytes, representing about 30% of the world’s data volume, according to RBC and IDC. The compound annual growth rate of healthcare data between 2018 and 2025 is predicted to be 36%, a much faster rate of data growth than that of other industries.
With more and more data, healthcare organizations are ready to put AI to work. According to the fourth annual Optum Survey on AI in Health Care, 98% of healthcare organizations have or planning to implement an AI strategy, including 48% who have implemented already. 41% of respondents said they are excited about using AI to improve patient outcomes and 39% about automating administrative workflows. Healthcare executives are increasingly optimistic that their AI investments will soon pay dividends, with 55% believing that AI will lead to more career opportunities for employees and 42% expecting a return on their AI investment over the next three years.
“We are building the kind of breadth and depth in AI that is allowing hospitals to fundamentally change the way they do business and provide the solutions needed to successfully compete in these challenging times. Aidoc is already the leading imaging AI platform, but with this new round of investment, our aim is to massively ramp up our AI Care suite to cover (a) the various hospital medical service lines; and (b) the depth of the integration into the clinical workflows, empowering hospitals to activate cross-specialty care teams and deliver the best quality of care in a scalable, efficient way to patients,” Aidoc CEO Elad Walach said in a statement.