Jamie Dimon, CEO of JPMorgan Chase & Co., at the Institute of International Finance (IIF) during the IMF and World Bank annual meetings in Washington, DC, USA, on Thursday, October 24, 2024.
Kent Nishimura | Bloomberg | fake images
San Francisco, famous for its abundance of hoodie-clad tech workers, was invaded this week by thousands of suited executives. JPMorganThe annual healthcare conference.
Leaders from major health systems, venture capital firms and companies from around the world gathered in hotel lobbies to talk business and strategy for 2025. The sunny skies were a welcome respite from the downpours of previous years, but other absences were harder to ignore.
This year's conference, known colloquially as JPM, took place a month after Brian Thompson, CEO of UnitedHealthcare, was shot and killed in New York City. The news was welcomed by Americans with numerous social media posts expressing resentment toward the healthcare industry, and many sharing stories about their negative experiences with insurers.
More than 10 companies, including Cigna and Walgreensthey subsequently withdrew their appearances at JPM, according to CNBC's analysis of the conference agenda. There was a noticeably large police presence at the conference's main venue, the Westin St. Francis hotel, and many businesses beefed up security at their events and private parties.
“The underground issue that I think people are talking about around water and cocktails is obviously what happened to the CEO of UnitedHealthcare,” said Wei-Li Shao, president of metabolic health startup Omada. “What does that mean for health care? What transformation should happen? And how can things be made more responsible?”
Thompson's murder was a “shocking and sad event” that has served as a wake-up call for the health care industry, said Erik Wexler, CEO of the nonprofit Providence Health System, which is made up of 51 hospitals. and 1,000 clinics in seven states. .
“Why are we here on a separate path? Why are we fighting?” Wexler said. “Our job is to do good for people who desperately need us at the most important time in their lives, whether it's you paying or the hospital.”
While Thompson's death loomed large at the conference, there was also palpable excitement and buzz about the year 2025. There was no shortage of discussion about the potential benefits of artificial intelligence and blockbuster weight-loss drugs called GLP-1, and investors seem cautiously optimistic that the digital health market could turn a corner.
“There are so many amazing things on the horizon for health care,” he said. dexcom CEO Kevin Sayer.
“At pharmaceutical companies and like ours, we work hard to improve people's lives and we make a big difference,” said Sayer, who knew Thompson well. “Be a little optimistic and give us a break, we are all trying to do good things.”
These are CNBC's main conclusions about JPM 2025:
Nvidia headquarters in Santa Clara, California, USA, on Tuesday, November 19, 2024.
David Paul Morris | Bloomberg | fake images
Generative AI stole the show
Generative AI was undoubtedly the healthcare “it girl” of 2024, and that seems unlikely to change in 2025.
Health systems in the United States are struggling to deal with burnout, staff shortages and razor-thin margins, so companies are rushing to develop artificial intelligence tools that can streamline some of the most tedious administrative tasks in the United States. industry. The issue was practically impossible to avoid in JPM.
For example, a healthcare payment company road star announced a new generative AI feature that aims to help doctors quickly combat insurance denials by automatically drafting appeal letters. Amazon Web Services and venture firm General Catalyst announced a new partnership that aims to accelerate the development and deployment of artificial intelligence tools for healthcare. Healthcare startup Abridge announced that Mayo Clinic will deploy its AI-based clinical documentation technology to about 2,000 physicians companywide.
“At the highest level, I don't think you can underestimate the impact that AI is already creating in healthcare,” said Dr. Shiv Rao, founder and CEO of Abridge. “At least in our segment, the response we get on a daily basis is just incredible and the adoption rate proves that this is a real thing.”
NVIDIAwhich makes the hardware that powers AI applications, was a particularly popular attendee at JPM this year. The company announced partnerships with several healthcare organizations, including clinical research provider. IQVIAneurotech startup Synchron, genomics company glow up and Mayo Clinic academic medical center.
“We have a business of more than $1 billion between direct revenue and revenue with our partners,” said Kimberly Powell, vice president of healthcare at Nvidia. He added that Nvidia sees more room for growth in AI healthcare applications.
Ozempic and Wegovy containers seen at Children's Hospital in Aurora, CO on November 18, 2024.
Kevin Mohatt | The Washington Post | fake images
Executives are optimistic about GLP-1
At presentations and cocktail parties this week, CNBC spoke with executives who marveled at the benefits of the booming class of weight-loss drugs known as GLP-1.
Nordisk and Eli Lilly Treatments for diabetes and obesity have been very successful in helping patients lose weight in recent years. A May study found that patients taking the anti-obesity drug Wegovy de Novo maintained an average weight loss of 10% for up to four years, for example.
Research shows that GLP-1 may also help treat cardiometabolic diseases, kidney diseases, and addictions, among other conditions. The U.S. Food and Drug Administration in December approved Lilly's weight-loss drug Zepbound as a treatment for sleep apnea.
Some analysts estimate that anti-obesity drugs could become a $100 billion industry by the end of the decade.
“These drugs are extraordinary and they're not going away,” said Dexcom's Sayer.
Supply shortages are one of the big obstacles for companies in the market, as growing demand has made it difficult for many patients to access treatments. Medications typically cost $1,000 a month without insurance, and coverage still varies for many Americans.
Still, many healthcare executives are optimistic that GLP-1 will significantly improve public health in the US.
“I've been joking, it's been the two G's, right? It's like LPG, GPT,” said Omada CEO Sean Duffy.
US President-elect Donald Trump speaks after a meeting with Republicans in Congress at the US Capitol building in Washington on January 8, 2025.
Jeenah Luna | Reuters
Uncertainty around the Trump administration
Ahead of President-elect Donald Trump's inauguration on Monday, JPM executives had many unanswered questions about what his administration has in store for the healthcare sector.
Health care was not a big focus for Trump during his campaign, meaning his policy goals for the industry are murky. Additionally, he has made some controversial cabinet picks since the election.
Trump nominated vaccine skeptic Robert F. Kennedy Jr. to lead the Department of Health and Human Services, famed TV host Dr. Mehmet Oz to lead the Centers for Medicare and Medicaid Services, and pancreatic surgeon Dr. Marty Makary to run the Food and Drug Administration. . All three nominees still need Senate confirmation.
“Until we have a little bit more visibility on this administration that's coming in the United States, the market is going to be volatile and a little more depressed,” Rebecca Stevenson, Americas head of healthcare investment banking, told reporters. HSBC, during a round table.
Owen Tripp, CEO of virtual care platform Incluido Health, said the Trump administration appears to be pro-business and has suggested it will push for greater access to care.
“It's not even so much about who is in the White House, but the fact that we have a Republican Congress and Senate that, in principle, have aligned themselves with expanding access and transparency,” Tripp said. “I think we will see more transparency in drug prices and also in healthcare prices, which is also hugely positive.”
Look: UnitedHealthcare tragedy is a wake-up call for corporate America, says Wharton's Americus Reed
