Cover Story: What the TechMed Revolution Means for Healthcare

The integration of advanced AI, machine learning, and computer vision tech with medical devices, dubbed the TechMed revolution, is a bold, empowering new chapter happening now in healthcare, and differentiated from MedTech, describes Alan Cohen, General Partner at DCVC. This data-driven new era is poised to improve patient outcomes worldwide.

Not all that long ago, groundbreaking medical technology began to change healthcare as we know it. Advanced, hardware-centric devices impacting the lives of patients during the MedTech Revolution, ranging from transcatheter heart valves to knee replacement implants, have improved patient outcomes and quality of life for problematic and prevalent health conditions. Today, the traditional, $500-billion-a-year medtech industry is being overshadowed by the transformational power of data, in a bold new era in patient-centered healthcare, coined by Alan Cohen, General Partner at deep tech venture capital firm, DCVC as TechMed.

Cohen, whose keynote address at LSI Europe ‘24 in Sintra, Portugal in September 2024, “The TechMed Movement Has Arrived,” offers a thought-provoking view on the emerging but current impact of data and deep tech in healthcare. This tech-enabled movement represents a shift from traditional medical technology, to a data-first, innovation-driven approach aimed at empowering healthcare professionals and transforming patient outcomes, describes Cohen.

"TechMed is a speciation event—a new species emerging from medtech, driven by a technology-first approach," he told the audience.

Cohen’s tech background and role at DCVC parallels his futuristic, but realistic view. He been a successful entre­pre­neur, technology executive, and board member for over 25 years for a range of companies including DCVC-backed Illumio, Nicira (acquired by VMware), Airespace (acquired by Cisco), Cisco (where he led the $25 billion enterprise marketing and solutions orga­ni­za­tion), General Growth Properties, and IBM.

The TechMed paradigm represents the evolution of traditional medtech by integrating advanced technologies such as sensors, machine learning (ML), and proprietary datasets, says Cohen. This approach prioritizes technology as the foundation for medical applications, rather than retrofitting existing medical disciplines. By blending advanced artificial intelligence (AI), ML, and computer vision with hardware, TechMed companies—differentiated from their MedTech brethren—are poised to tackle some of the healthcare industry’s most difficult and long-standing challenges.

Advancements in the use of AI/ML are enabling the identification of population trends and the ability to forecast health outcomes by evaluating enormous amounts of medical data, including images, test results, and patient records. These powerful, novel capabilities promise to offer healthcare professionals a whole new level of diagnostic accuracy, individualized treatment strategies, and effective patient monitoring, that hold the potential of democratizing access to high-quality care, reducing costs, and improving patient quality of life worldwide. 

And, the term TechMed is catching on big time within industry. NVIDIA, a leader in AI hardware and software, promoted the term at the recent annual J.P. Morgan Healthcare Conference in San Francisco. Tom Oxley, CEO of Synchron, described in a LinkedIn post and in presentations that there is a new, fast-growing and high-potential sector that is data-first in healthcare, TechMed, that they are calling Digital Devices, that is comprised of robotics and Brain Computer Interfaces (BCI). This is akin to the “'TechBio” subset of Biotech that is data-first, according to Oxley. To the Medtech analysts and VCs, he says this is real, it is coming, and it is big.

Here we take a look at the main takeaways from Cohen’s keynote and his vision of TechMed, which he presented to the LSI Europe ‘24 audience as offering unprecedented opportunity for the MedTech and healthcare ecosystem. 

Hardware and Software Fusion is Enabling Precision

The seamless integration of hardware and software is a driving force behind transformative medical technologies, enabling more accurate diagnostics, streamlined workflows, and improved treatment outcomes, notes Cohen. As a powerful example, innovative medical devices are combining AI with imaging tools to identify anomalies with a level of precision that was once considered impossible. Robotic-assisted surgery platforms use 3D imaging and haptic feedback to allow surgeons to perform minimally invasive procedures with enhanced precision. This fusion is also being used to improve workflow efficiency, such as automating data collection and analysis in hospitals to reduce the burden on clinicians and increase operational efficiency.

"Hardware and software are fusing in transformative ways, changing how we approach healthcare," he says.

Human Enablement as the Ultimate Goal

A central theme of the TechMed revolution is its ability to empower rather than replace healthcare professionals, says Cohen. Tools like AI-assisted imaging systems enable radiologists to interpret scans faster and more accurately, while wearable technologies provide nurses with real-time patient vitals, allowing for timely interventions.

TechMed innovation focuses on providing tools that enhance the capabilities of medical practitioners, ranging from sonographers to surgeons. For instance, AI-powered guidance systems allow non-specialists to perform tasks like capturing diagnostic-quality images, helping to alleviate workforce shortages. This democratization of expertise means that care can reach more patients, particularly in underserved areas.

“The goal is to give superpowers to people to do their job better, to be more effective,” emphasized Cohen.

AI as a Catalyst for Transformation

AI and machine learning are unlocking new possibilities across the healthcare continuum. Examples include Caption Health’s use of AI to guide imaging and diagnostic tools (more about Caption Health on the next page), as well as semantic AI, which creates hyper-detailed anatomical models. These innovations are revolutionizing areas like personalized medicine, where algorithms analyze a patient’s unique characteristics to tailor treatments.

"Machine learning and neural networks collect information from the periphery and bring it back—just like what we do in medicine," notes Cohen.

Despite AI's transformative potential, its adoption in healthcare lags behind other industries, he says. Cohen emphasized the urgency for the medical device sector to harness AI for diagnostics, digital therapeutics, and clinical insights.

He also introduced the concept of "Semantic AI," focusing on using AI to create highly detailed anatomical models and improve the understanding of the body's interactions with drugs, devices, and procedures. Semantic AI is poised to revolutionize healthcare by integrating and visualizing diverse health data streams, including lifestyle, medical interventions, and environmental factors.

"Semantic AI will enhance our ability to understand human anatomy and its interactions with medical interventions down to the millimeter," he describes.

Data-Driven Decision Making

Data is the backbone of the TechMed revolution. And, the transition from static, point-in-time measurements to continuous, real-time data flows is enabling more proactive and personalized care, says Cohen. Wearables, implants, and monitoring devices are now capable of generating dynamic datasets that allow clinicians to detect issues early and intervene proactively. For instance, platforms like Sickbay aggregate data from multiple devices to monitor for conditions such as sepsis or heart failure, enabling faster and more informed clinical decisions, he notes.

"Using AI to enhance healthcare outcomes is dramatically more important than building models to write marketing copy," says Cohen.

In effect, Cohen notes, both in his keynote address and in his thesis entitled “The TechMed movement has arrived,” that TechMed companies cultivate a ​“data river” rather than a data moat, a continuous and dynamic flow of data that spans the entire patient lifecycle, from diagnostics to intra-procedures, and post-procedure phases. The depth, breadth, and constant updating of these datasets ensure they remain compre­hen­sive and relevant, with each new data input enhancing the model’s capabilities. This contrasts with tradi­tion­ally ​“siloed” insti­tu­tional data stores that are fragmented, narrow in scope, and quickly become stale, Cohen notes.

This concept aligns with the growing trend of real-time health monitoring and adaptive care models. For the medical device industry to thrive, leveraging continuous, real-time data from implants, wearables, and other devices is crucial, Cohen continues. "To fulfill the promise of TechMed, we must move from static snapshots to dynamic, real-time insights."

A Mission-Driven Approach

TechMed is as much about purpose as it is about innovation. Many TechMed pioneers are inspired by deeply personal experiences, driving them to create solutions with lasting societal impact. For Cohen, when his father, a Navy corpsman providing medical care during the Korean War, was diagnosed with glioblastoma in 2016, he talked Cohen into leaving the tech industry and doing something that would have a more long-lasting impact on society. Based on his father’s impact on troops during the war, he chose the field of medicine.

TechMed in Action: Proprio and Caption Health

Drawing from his work with AI pioneers, Cohen underscores the role of neural networks and machine learning in advancing medical technologies. Two DCVC-backed companies exem­pli­fy the TechMed thesis: Proprio and Caption Health, he describes. 

Proprio is a surgical navigation and intel­li­gence company focused initially on spine procedures like posterior spinal fusions to correct curvature of the spine. The company’s flagship product, the Proprio Paradigm platform, revolutionizes the surgical process by providing AI-guided visualization and data-driven insights that improve precision, efficiency, and patient outcomes.  It relies on an advanced array of sensor tech­nolo­gies including lightfield imaging, which captures visuals with far more depth and dimen­sion­ality than traditional cameras. The company’s system gives surgeons real-time 3D guidance akin to ​“surgical GPS,” contin­u­ously mapping and adjusting the operative field to ensure optimal implant placement and spinal alignment. It leverages computer-vision AI models built from analyzing hundreds of prior procedures by world-class surgeons across 250+ gigabytes of multi-modal operating room data per procedure. This proprietary data pipeline allows Proprio’s system to improve with every surgery, learning new techniques and adjusting for any intraoperative changes.

In 2023, Proprio secured landmark FDA 510(k) clearance as the first such AI-guided surgical navigation system for spine surgery. With a robust pipeline of further FDA submissions across other spine procedure types and ultimate ambitions to expand into orthopedics, neuro­surgery, and more, Proprio is looking to become the default ​“co-pilot” platform, augmenting surgeons across myriad therapeutic areas.

Companies like Proprio demonstrate the strength of diverse expertise, blending machine learning, medical device engineering, and clinical knowledge to advance surgical technology. "The fusion of disciplines at Proprio shows how collaboration builds entirely new platforms for the industry," describes Cohen.

Caption Health, acquired by GE Healthcare in 2023, took a similar data-driven AI approach but for the imaging diagnostic realm. Its break­through product was an AI guide that enabled minimally trained operators to capture diagnostic-quality ultrasound image sequences on par with expert sono­g­ra­phers or cardi­ol­o­gists. By studying tens of thousands of prior exams, Caption’s AI learned to identify standard views and provide real-time instruc­tions on properly manip­u­lating the ultrasound wand.

For conditions like heart disease, which require assessing the heart’s ejection fraction, Caption’s ​“virtual instructor” democ­ra­tized the ability to administer these studies at the point of care, rather than having to rely on scarce, trained staff constantly shuttling between imaging rooms and offices. Caption subse­quently expanded its product into other use cases like lung imaging and maternal health, creating AI-guided imaging protocols for a variety of acute and chronic conditions, describes Cohen.

What Does TechMed Mean for Healthcare?

The human and economic impact of the TechMed movement is multi­fac­eted and trans­for­ma­tive, says Cohen. Unlike the slower innovation cycles of traditional MedTech companies, TechMed players like Proprio and Caption more resemble agile tech industry disruptors, he notes.

This new revolution is not just a technological shift but a profound transformation of how healthcare is delivered. By harnessing the power of data and deep tech, this movement holds the promise of democratizing access to high-quality care, reducing costs, and improving lives worldwide. And, it's already happening.

Ultimately, TechMed stands at the forefront of a healthcare trans­for­ma­tion, promising better patient care, more efficient medical practices, and a more econom­i­cally sustainable healthcare system, says Cohen. It also means that the traditional medical device business model faces disruption. Startups and incumbents alike must rethink how they deliver value, says Cohen. Subscription-based and value-driven pricing are emerging as sustainable models, aligning costs with benefits for providers and patients.

"If you provide a compelling solution for users, they will help pull you through on the business model," he describes. Cohen concludes his address with a call to action for MedTech innovators: the time to lead this change is now, and to work with tech-forward companies to not only innovate but to profoundly enhance human health. For those ready to embrace the TechMed vision, the possibilities for impact are immense.

Alan Cohen, General Partner, DCVC

Alan Cohen is a partner focusing on an array of AI-enabled health tech, energy, security, and enterprise oppor­tu­ni­ties that are trans­forming industries. In addition to his board roles, he works across our portfolio on product/market fit, go-to-market strategy, and executive leadership development, and led DCVC’s successful exits at Element AI, Evolv (Nasdaq: EVLV), and Caption Health.

He has been a successful entre­pre­neur, technology executive, and board member for over 25 years for a range of iconic companies, including DCVC-backed Illumio, Nicira (acquired by VMware), Airespace (acquired by Cisco), Cisco (where he led the $25 billion enterprise marketing and solutions orga­ni­za­tion), General Growth Properties, and IBM. He has authored over 200 articles, undertaken over 1,000 press interviews, and delivered over 100 keynotes at industry conferences. In addition to his DCVC respon­si­bil­i­ties, Cohen is a member of the Advisory Committee of the Secure Community Network, a mentor at the NYU-backed Endless Frontier Lab, and an adviser to Black Women on Boards.

He received a bachelor’s degree in English from SUNY Buffalo, a master’s degree in English from the University of Vermont, a master’s degree in inter­na­tional affairs and economics from the American University School of Inter­na­tional Service, and an MBA from New York University.