ZorroCard Round Up (11/12/2024)

Hey all,

I’m a little late today due to no wi-fi on the plane. Enjoy the rundown!

Jacob Brody (Co-Founder & CEO, ZorroCard)

Sword Health Cuts Clinical Staff Amid AI Push (Business Insider)

Sword Health, a $3 billion digital-health startup, has laid off 17% of its physical therapists as it shifts toward managing more patients using AI. The company aims to increase therapists’ caseloads from 200-300 to 700 patients each by late 2024, with AI supporting messaging and patient prioritization. Sword’s AI-driven strategy aligns with its profitability goals, potential IPO by 2025, and competition with Hinge Health and Omada Health in the musculoskeletal care market. Full Article.

Breaking Down the Health Care Dollar (BenefitsPro) 

According to AHIP, hospital costs dominate health care spending at 40.7 cents per dollar, including outpatient, inpatient, and emergency services. Prescription drugs take 24.2 cents, while doctor visits and other outpatient care account for 18.7 cents combined. Administrative and overhead expenses, including taxes, fees, profits, and cost containment, make up 16.4 cents, with just 0.8 cents dedicated to quality improvement. This breakdown highlights the complexity of medical costs and the significant share spent on non-patient care. Full Article.

Veterans Deserve Better: The VA’s Privatization Problem (HEALTH CARE un-covered) 

Wendell Potter critiques the VA’s quiet shift toward privatization, which outsources veterans’ care to insurers like Cigna and Humana. The result? Narrow networks, higher costs, and worse access—all while studies show VA care outperforms private alternatives. Despite promises of “efficiency,” the real winners are insurance companies, not veterans. Potter calls for a renewed commitment to strengthening the VA rather than hollowing it out under the guise of cost-cutting. Full Article.