The Healthtech Podcast #345 The importance of Health Economics with Dr Hugh Harvey, MD at Hardian Health
Apr 10, 2024
Dr. Hugh Harvey, MD at Hardian Health, discusses the importance of health economics in AI technologies in healthcare. Topics include navigating regulatory challenges, evaluating value propositions, and the role of errors in health tech innovation. Comparison of UK and US healthcare systems is explored, with advice on scaling healthcare startups and the significance of early economic modeling.
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EU AI Act Raises The Bar For Medical AI
- The EU AI Act creates sector-wide AI rules and classifies risks, explicitly treating medical devices as high-risk AI.
- It adds transparency, quality management requirements, and penalties up to €35M to protect against systemic harms.
Do Early Economic Modelling
- Do perform early economic modelling to map current care pathways and identify cost units before heavy investment.
- Use the model to estimate added costs and savings so you can de-risk go/no-go decisions early.
Saved Clinician Time Isn't Automatic Cash
- Time-saved claims often don't translate to cash savings because clinician pay isn't hourly marginal cost.
- Realisable savings require showing how freed capacity avoids hires or produces billable value.