AI Bests MDs, Stopping Pharmacies From Closing & 340B Basics

Hey all,

If any of you are at all unsure of how they 340B program works you should check out Jared Dashevsky’s post from Healthcare Huddle. Generally Jared is a great source of information on traditionally opaque areas of healthcare. Enjoy the rundown!

Jacob Brody (Co-Founder & CEO, ZorroRX)

(The New York Times) The Robot Doctor Will See You Now

Recent studies suggest that AI is outperforming doctors in certain diagnostic tasks, but physicians often undervalue AI’s input, limiting its potential impact on patient care. Rather than using AI as a mere tool for doctors, a more effective approach may be a structured division of labor—where AI independently handles routine tasks like screening normal X-rays, while doctors focus on complex cases requiring human expertise. Early trials in Denmark and Sweden show that this model can improve accuracy, reduce workload, and address healthcare worker shortages, but questions about liability, regulation, and training remain. Full Article

(First Opinion) Will PBM Reform Save Pharmacies from Closing?

While pharmacy benefit managers (PBMs) are often blamed for pharmacy closures in the U.S., similar struggles are occurring in countries without large PBMs, indicating that deeper market forces are at play. The retail pharmacy landscape has evolved, with large chain closures and the rise of “pharmacy deserts,” but independent pharmacies continue to open despite financial pressures. Policymakers are pushing PBM reforms to support pharmacies, yet broader economic trends—such as competition from online retailers, shifting consumer habits, and reliance on non-prescription sales—also impact the viability of brick-and-mortar pharmacies. To truly sustain pharmacies, solutions must go beyond PBM reform to include new revenue models, better pharmacy service evaluation, and potential subsidies. Full Article

(Healthcare Huddle) The 340B Drug Program

Dr. Jared Dashevsky provides a pretty good overview of the 340B program, which has evolved into a multi-billion-dollar revenue stream for hospitals, retail pharmacies, and middlemen—with little oversight on whether patients benefit. Hospitals can buy drugs at steep discounts, bill insurers full price, and keep the profits, often using them to expand into wealthier areas rather than reinvesting in low-income care. Reform efforts are focusing on transparency, limiting contract pharmacy involvement, and ensuring that 340B savings are directed toward the patients the program was meant to serve. Full Article