Anthem has reached a $115 million deal to settle a class-action lawsuit over a 2015 data breach in which hackers stole personal information from 78.8 million employees and current and former members.

The settlement is the largest data-breach settlement ever. As part of the deal, Anthem will offer two years of credit protection to those affected—in addition to the two years of monitoring they already received—and will set aside funding for cybersecurity improvements, including modifying its current cybersecurity systems. It will also set aside $15 million to pay plaintiffs for out-of-pocket costs due to the breach.

The deal comes more than two years after Anthem announced hackers had gained access to its IT system. They stole the names, birthdates, Social Security numbers, addresses, and other information of tens of millions of people.

“As we have seen in cyberattacks against governments and private sector companies including Anthem over the past few years, many cyberthreat actors are increasingly sophisticated and determined adversaries,” the company wrote in a statement. “Anthem is determined to do its part to prevent future attacks.”

The settlement must be approved by a U.S. District Court in California.


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During the first half of this year, digital health startups raised more money than ever, with 188 digital health deals and $3.5 billion invested, according to a new report.

If financing continues at this clip, 2017 will see $2.7 billion more in investments than last year, when there was $4.3 billion invested.

The second quarter of 2017 was a dramatic change from the first, when deals were on par with those of the prior year. But in the last few months, a couple of huge deals brought the funding up to an unprecedented level at the midpoint of the year, when funding in 2016 was around $2.5 billion, according to a report from Rock Health, which tracks healthcare venture funding.

Outcome Health, which delivers health information to practices, raised a record $500 million in its first round of funding, with investors that included Goldman Sachs Investment Partners and CapitalG. Rock Health reported that Peloton Interactive, which makes spin bikes and is not a traditional healthcare organization, had the second-largest round of funding, with a $325 million series E round.

However, this year lags behind 2016 in one major way: There have so far been no digital health IPOs. Rock Health expects that to change soon, with well-funded companies poised to make exits.

Overall, the digital health category with the most funding in the first half of 2017 was consumer health information, with eight deals totaling $757 million. That reflects the push to get consumers involved in their own care, given the shift to value-based models and the resulting demand for innovative, cost-cutting healthcare delivery solutions.

“As provider reimbursement is increasingly based on outcomes, providers are more likely to invest in solutions that promote healthy patient behaviors in and outside the hospital,” said Megan Zweig, Rock Health’s director of research and one of the report’s authors.

Demand for patient-centric solutions has persisted despite the uncertainty caused by the debate over healthcare legislation in Washington. With the prospect of consumers paying more of their own healthcare costs because of high deductible plans or loss of coverage, providers must find ways to make healthcare more affordable, according to Rock Health.

“Regardless of the outcome of the healthcare policy kerfluffle, we look forward to seeing how startups will continue to meet the urgent needs of patients and transform healthcare for the better,” wrote Rock Health’s Halle Tecco and Zweig in a blog post.

Some of those startups, such Healthify—which announced $6.5 million in series A funding today—are addressing patients’ needs by looking to issues not typically included in healthcare. Healthify’s software helps connect patients with community organizations that address social determinants of health, including healthy food and affordable housing. The company will use the funding to broaden its customer base and expand its network of social-service partners.

“Our latest round of funding is another indicator of the leading role digital health companies can play in system transformation,” said Eric Conner, co-founder and chief revenue officer of Healthify. “Good digital health companies take the risk out of the decisionmaking process.”

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Cleveland Clinic names CIO

On July 21st, 2017, posted in: Industry News by

Cleveland Clinic has named Edward Marx as its new chief information officer.

Marx, a former University Hospitals CIO who most recently served as executive vice president at the Advisory Board Co., will start in his new role Sept. 1. He takes over the role vacated by Dr. C. Martin Harris, now the chief business officer and associate vice president of the health enterprise at Dell Medical School at the University of Texas at Austin. Doug Smith had been serving as the clinic’s interim chief information officer.

“Ed has spent his career fostering a culture of innovation and leading teams at the forefront of health care information technology,” Cleveland Clinic President and CEO Dr. Toby Cosgrove said in a news release. “As CIO he will advance the Cleveland Clinic’s ‘Patients First’ culture by providing information-enabled, data-driven technology focused on facilitating world-class patient care.”

While at the Advisory Board Co., Marx provided IT leadership and strategy for NYC Health + Hospitals, the largest public health system in the United States. Before that he served for eight years as chief information officer at Texas Health Resources. Before that, he served for five years at UH’s CIO.

“Successful healthcare IT has to ask, ‘How do we innovate to save lives?’ ” Marx said in the release. “Technology has such potential to save many, many more lives, if we can innovate and impact patient safety and the quality of care we deliver.”

Marx appointment, meanwhile, comes at a time of transition for the clinic’s IT department. Late last year, the clinic and IBM announced they were entering a five-year agreement to expand the clinic’s health information technology capabilities. At the time, the parties said IBM would bring design and security expertise, as well as support for a portion of the clinic’s technology infrastructure and operations.

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