San Francisco, famous for its abundance of tech employees in hoodies, was overrun this week by 1000’s of executives in suits JPMorgan's annual health conference.
Executives from major health systems, enterprise capital firms and firms across the globe gathered in hotel lobbies to debate deals and techniques for 2025. The sunny skies were a welcome relief from the downpours of years past, but other absences were harder to disregard.
This yr's conference, known colloquially as JPM, got here a month after UnitedHealthcare CEO Brian Thompson fatally shot in New York City. The news was greeted by Americans with quite a few social media posts expressing their displeasure with the healthcare industry and plenty of sharing their negative experiences with insurers.
More than 10 corporations including Cigna And WalgreensThey subsequently canceled their appearances at JPM, in line with CNBC's evaluation of the conference agenda. There was a noticeably large police presence on the conference's major venue, the Westin St. Francis Hotel, and plenty of corporations increased security at their private events and parties.
“The subterranean issue that I think people are talking about around the water and over cocktails is obviously what happened to the CEO of UnitedHealthcare,” said Wei-Li Shao, president of metabolic health startup Omada. “What does this mean for healthcare? What transformation should take place? And how can things become more responsible?”
Thompson's murder was a “stunning, sad event” that served as a wake-up call for the health care industry, said Erik Wexler, CEO of the nonprofit Providence Health System, which consists of 51 hospitals and 1,000 clinics in seven states.
“Why are we on separate paths here? “Why are we fighting?” Wexler said. “Our job is to do good for people who urgently need us at the most important time in their lives, regardless of whether you are the payer or the hospital.”
While Thompson's death played a big role on the conference, there was also palpable excitement and excitement surrounding the yr 2025. There was no shortage of debate concerning the potential advantages of artificial intelligence and the blockbuster weight reduction drug called GLP-1, and investors appear to to be cautiously optimistic that this can be the case. The digital healthcare market might be a game-changer.
“There are so many amazing things on the horizon for healthcare,” he said Dexcom CEO Kevin Sayer.
“Pharmaceutical companies and companies like ours 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 little break, we’re all trying to do good.”
Here are CNBC's key takeaways from JPM 2025:
Generative AI stole the show
Generative AI was undoubtedly the “it girl” of healthcare in 2024, and that seems unlikely to vary in 2025.
U.S. healthcare systems are fighting burnout, staff shortages and razor-thin profit margins. That's why corporations are scrambling to develop AI tools that may streamline a few of the industry's more tedious administrative tasks. At JPM the subject was practically unavoidable.
For example, a healthcare payment company Waystar announced a brand new generative AI feature designed to assist doctors quickly address insurance denials by robotically writing dispute letters. Amazon Web Services and enterprise firm General Catalyst announced a brand new partnership geared toward accelerating the event and deployment of AI tools for healthcare. The healthcare startup Abridge announced Mayo Clinic will provide its AI-powered clinical documentation technology to roughly 2,000 clinicians across the organization.
“At the highest level, I don’t think it should be underestimated the impact AI is already having on healthcare,” said Dr. Shiv Rao, Founder and CEO of Abridge. “At least in our segment, the feedback we get on a daily basis is just incredible, and the adoption rate shows that this is a real thing.”
Nvidiawhich makes the hardware for AI applications, was a very popular participant at JPM this yr. The company announced partnerships with several healthcare organizations, including clinical research provider IQVIANeurotech startup Synchron, genomics company Illumina and Mayo Clinic Academic Medical Center.
“We have a well over a billion dollar business between direct revenue and revenue with our partners,” said Kimberly Powell, Nvidia's vp of healthcare. She added that Nvidia sees more room for growth for AI applications in healthcare.
Executives are optimistic about GLP-1s
At presentations and cocktail parties this week, CNBC spoke to executives who wondered concerning the advantages of the booming class of weight-loss drugs generally known as GLP-1.
Novo Nordisks And Eli Lilly's Diabetes and obesity treatments have been extremely successful in helping patients drop pounds in recent times. A May study found that patients taking Novo's obesity drug Wegovy, for instance, maintained a median weight reduction of 10% for as much as 4 years.
Research shows that GLP-1 could also help treat heart problems, kidney disease and addictions, amongst other things. The U.S. Food and Drug Administration approved Lilly's weight-loss drug Zepbound in December to treat sleep apnea.
Some analysts estimate that obesity drugs could grow right into a $100 billion industry by the tip of the last decade.
“These drugs are remarkable and are not going away,” said Dexcom’s Sayer.
Supply shortages are considered one of the main hurdles for corporations available in the market, as increasing demand makes it difficult for a lot of patients to access treatment. The drugs typically cost $1,000 a month without insurance, and coverage still varies for a lot of Americans.
Still, many health care leaders are optimistic that GLP-1 will significantly improve public health within the United States
“I was joking, it was the two Gs, right? It’s like GLP, GPT,” said Omada CEO Sean Duffy.
Uncertainty surrounding the Trump administration
Ahead of President-elect Donald Trump's inauguration on Monday, JPM executives had many unanswered questions on what his administration has in store for the healthcare sector.
Health care was not a spotlight for Trump throughout the campaign, meaning his policy goals for the industry are unclear. In addition, he has made some controversial cabinet decisions because the election.
Trump appointed vaccine skeptic Robert F. Kennedy Jr. to move the Department of Health and Human Services, distinguished television host Dr. Mehmet Oz to move the Centers for Medicare & Medicaid Services and a pancreatic surgeon Dr. Marty Macary take over leadership of the Food and Drug Administration. All three nominees still need Senate confirmation.
“Until we have a little more insight into the incoming administration in the U.S., the market is going to be volatile and a little more depressed,” Rebecca Stevenson, HSBC head of healthcare investment banking for the Americas, told reporters at a roundtable.
Owen Tripp, CEO of virtual care platform Included Health, said the Trump administration appears to be pro-business and has indicated it would push for greater access to health care.
“It's not even so much about who is in the White House, but more about having a Republican Congress and Senate that is fundamentally committed to expanding access and transparency,” Tripp said. “I think there will also be more transparency in drug pricing and healthcare pricing, which is also extremely positive.”
Regard: The UnitedHealthcare tragedy is a wake-up call for corporate America, says Wharton's Americus Reed
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