Inside HHS’ AI purchases

Sep 13, 2024

Presented by

With Daniel Payne

A bar graph shows that HHS has spent nearly $129 million in AI purchases.

ARTIFICIAL INTELLIGENCE AT HHS — HHS, one of the federal government’s top users of artificial intelligence, has spent nearly $129 million on AI and AI-related purchases in the past five years, Chelsea and POLITICO’s Mohar Chatterjee report.

That’s according to a POLITICO analysis of government data, which found that the top spenders within HHS include:

— The Office of the Assistant Secretary for Management and Budget at $53 million

— The NIH at $26 million

— The FDA at $32 million

Why it matters: AI experts who spoke with POLITICO said the investments, which accelerated before President Joe Biden’s October executive order directing federal agencies to be more intentional about how they use and regulate AI, aim to sort through massive datasets and advance research at the FDA and the NIH.

“This is encouraging,” said Dr. Don Rucker, who was HHS’ National Coordinator for Health IT in the Trump administration. As the health care industry works out what the proliferation of AI means for the sector, “HHS is sort of working out a version of the same question,” Rucker added.

A bar graph shows that FDA and NIH are among HHS' biggest AI purchasers.

Some ways HHS agencies use AI:

— To date, the OASMB purchased from AI company Spectral MD more than $39 million in optical imaging devices that use machine-learning algorithms to classify burns, which can be used to handle wounds in mass-casualty events.

— In 2020 and 2021, the Centers for Medicare and Medicaid Services awarded tech consulting firm ESimplicity nearly $4 million to plan how to efficiently transition its data to cloud services that could support AI use.

— Last year, the National Institutes of Health awarded a nearly $3.5 million contract to AI company BelleTorus for the experimental development of telehealth AI tools that could digitally assess a child’s throat and airways.

According to a GAO report from December, HHS is one of the top federal government agencies using AI — fourth only to NASA and the Commerce and Energy departments.

Just last month, HHS merged two tech offices and increased its focus on AI, posting job listings for three new roles related to creating AI policy: A chief AI officer, a chief technology officer and a chief data officer.

WELCOME TO FRIDAY PULSE. One-third of cinnamon samples in a variety of products have elevated levels of lead in them, a new report said. I guess I won’t be making Snickerdoodles this weekend. Send your tips, scoops and feedback to ccirruzzo@politico.com and bleonard@politico.com and follow along @ChelseaCirruzzo and @_BenLeonard_.

LIVE EVENT ON WEDNESDAY:

THE FUTURE OF PATIENT CARE AND ACCESS

Join us on Wednesday, Sept. 18, starting at 8:30 a.m. ET, as we dive into how health care delivery innovations fueled by AI and tech are empowering providers to focus more time and resources on patients.

Watch our keynote conversation with HHS’ Micky Tripathi, assistant secretary for technology policy and acting chief artificial intelligence officer. Stick around for a panel conversation with Nancy Howell Agee, CEO of Carilion Clinic; Andrea Downing, president and co-founder of The Light Collective; Kolaleh Eskandanian, VP and CIO of Children’s National Hospital; and Hafeezah Muhammad, founder and CEO of Backpack Healthcare.

RSVP to attend and watch here.

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Abortion

The Red River Women’s Clinic is seen.

The Red River Women's Clinic was the only abortion clinic in North Dakota when Roe v. Wade was overturned. The clinic has since moved to Minnesota. | Jack Dura/AP

NORTH DAKOTA ABORTION BAN STRUCK — A state judge struck down North Dakota’s abortion ban Thursday, siding with an abortion clinic and abortion-rights activists who argued the ban violated the state constitution’s protections for residents’ rights to make medical decisions.

In his decision, state District Judge Bruce Romanick said the abortion ban was too vague and “impermissibly infringes” on fundamental rights outlined in the state’s constitution.

“[P]regnant women in North Dakota have a fundamental right to choose abortion before viability exists under the enumerated and unenumerated interest protected by the North Dakota Constitution, for all North Dakota individuals, including women,” he wrote.

Background: The suit was filed in 2022 by the state’s sole abortion provider after Roe v. Wade was overturned. The following year, state lawmakers passed a near-total abortion ban. North Dakota authorities had called on Romanick to dismiss the suit because the abortion provider has since left the state.

Fourteen states ban abortion, and dozens of others have gestational limits on the procedure. This November, voters in a handful of states will be able to vote on amendments to enshrine abortion rights in their state constitutions.

In Congress

GOP SHRUGS OFF TRUMP’S ACA ‘CONCEPT’ — Former President Donald Trump said he has “concepts of a plan” to replace Obamacare, but some Republicans aren’t ready for another campaign to repeal the popular law, POLITICO’s Robert King reports.

Several GOP lawmakers said they should focus instead on modifications to the law instead of a wholesale repeal.

“We have health care now. It is not just Obamacare. It is health care,” said Sen. James Lankford (R-Okla.). “This has been in place now [for] a decade. You are not going to just be able to pull everything out that was there.”

Sen. Bill Cassidy (R-La.), ranking member of the Senate Health, Education, Labor and Pensions Committee, called for fixes to the law that could garner bipartisan support.

During Tuesday’s presidential debate, Trump said he had the “concepts of a plan” to replace Obamacare. The Trump campaign promised to release more details but said that his position "remains the same: bring down costs and increase the quality of care by improving competition in the marketplace," said Karoline Leavitt, the campaign's national press secretary

The House passed the 2017 American Health Care Act , which partially repealed the law. However, the Senate voted down a narrow version of the bill after a dramatic late-night vote in opposition from then-Sen. John McCain (R-Ariz.).

Some Republicans want to move on for good from the issue.

“We should reform our health care system, but getting into this repeal-and-replace banter, I am not going to engage on that,” said Sen. Mike Crapo (R-Idaho).

ANOTHER SWING AT NO SURPRISES — A bipartisan group of lawmakers yesterday afternoon introduced legislation that would tighten how the 2020 No Surprises Act can be enforced, Daniel reports.

The No Surprises Act aimed to limit the amount of money an insured patient must pay for some out-of-network providers at in-network facilities, but health providers have complained that the law hasn’t been enforced fairly.

The new legislation, introduced by Reps. Greg Murphy (R-N.C.), Raul Ruiz (D-Calif.), John Joyce (R-Pa.), Kim Schrier (D-Wash.) — all doctors — and Nathaniel Moran (R-Texas), would increase penalties for not complying with the law or missing payment deadlines, as well as adding new reporting requirements, according to a copy of the text reviewed by POLITICO.

Why it matters: The new legislation comes after years of concerns and court battles from providers who say they’re not paid fairly under current law.

Some lawmakers have complained that the Biden administration hasn’t enforced the law as it’s written and seek to adjust that process legislatively.

A message from Aflac:

AROUND THE AGENCIES

RESEARCH MISCONDUCT RULE FINALIZED — HHS finalized an update to a 20-year-old policy on research misconduct, such as political meddling, in public health today, Chelsea reports.

The update:

— Improves the ability of institutions, such as labs and universities, to identify and report research misconduct and extends the timeline for an institutional inquiry from 60 to 90 days.

— Streamlines the appeals process for those who want to dispute findings of misconduct.

— Clarifies the responsibilities of HHS, the Office of Research Integrity and Public Health Service-funded institutions about how to address, report, document and investigate research-misconduct allegations. For example, findings by HHS and the institutions are separate, and the latter can choose to make its findings public.

— Allows research institutions to determine what constitutes an honest error and make exceptions when that happens. The final rule takes effect next year.

Why it matters: The Biden administration has pledged to restore trust in public health efforts. In September, HHS told the Government Accountability Office that overhauling the 2005 scientific integrity policy is part of an initiative to prevent political meddling in health decisions.

ORGAN TRANSPLANT RULE PROPOSED — HHS proposed a rule Thursday that would streamline the process of transplanting a kidney or a liver from an HIV-positive donor to another HIV patient.

The rule, if finalized, would remove clinical research and institutional review board requirements that the agency said are burdensome and slow down the process. A 2013 law made it possible to transplant organs from donors with HIV to other donors with HIV under certain research protocols.

The proposal comes as the federal government undertakes a complete overhaul of the organ transplant system but faces congressional scrutiny over its progress and implementation.

The proposed rule is open for comments through Oct. 15.

Names in the News

Carolyn McNiven and Jessica Natali are now partners at Faegre Drinker’s litigation group. Brittany Fisher is now an associate. All three came from Greenberg Traurig and have experience as federal prosecutors.

WHAT WE'RE READING

POLITICO’s David Lim and Marcia Brown report that feds don’t know where a Missouri human case of bird flu came from.

POLITICO’s Sophie Gardner reports on what to know about worsening insect-borne illnesses.

The Wall Street Journal reports on competition between Pfizer and two biotech firms for investors in treatment for a little-known heart condition.

A message from Aflac:

Most people who experience a major medical event will end up with unexpected expenses such as transportation and unexpected hospital and doctor charges. As health care costs continue to rise, even those with major medical insurance are struggling to afford care and exhausting their savings to cover medical bills. Supplemental insurance can offer financial protection by helping to cover out-of-pocket costs like copays and deductibles.

Learn more about how supplemental insurance helps with the unexpected.