An investment here could have big implications for drug costs, value-based care, and population health.
Seventeen health systems are investing in a genomic database that could significantly drive down clinical costs.
Truveta, a Washington-based software company, unveiled the Truveta Genome Project on January 13. The large collaboration aimed at creating a diverse database of genotypic and phenotypic information could transform billions of data points with industry-leading normalization and aid in everything from drug discovery to accelerating value-based care.
Health systems like Advocate Health, CommonSpirit Health, Henry Ford Health, Northwell Health, Providence and Trinity Health have all invested in the project.
The project is taking shape through two health companies:
-Illumina, which does DNA sequencing, which is investing $20 million.
-Regeneron, a biotech company focused on medicine creation, which is investing $119.5 million.
Regeneron’s investments are enabling the discovery and development of new therapies, as well as new solutions for healthcare delivery and population health management.
Together, Illumina and Regeneron, and the 17 health systems have invested $320 million in Truveta preferred equity at a valuation exceeding $1 billion, according to Truveta.
Additionally, Microsoft Azure will be the exclusive cloud provider for the Truveta Genome Project.
Why Does It Matter?
The process: Truveta, alongside its health system partners, will gather leftover biospecimens from routine lab tests that are linked to de-identified medical records for genetic research that will remain anonymous. Then, the first 10 million volunteers will have their exomes sequenced by the Regeneron Genetics Center.
The Truveta Language Model, an AI system designed to process and standardize large volumes of genetic and clinical data, built on Microsoft's Azure, is a key ingredient. By applying AI to this dataset, researchers hope to better understand genetic contributions to health and disease.
This database differs from ones that preceded it. There’s been a lack of large and representative datasets in healthcare that are fit to apply current AI tech to uncover connections between genetics and medical outcomes.
With more information comes more options and more informed medical outcomes that accelerate efficiency and operational excellence.
This project could be huge for the healthcare industry. With more precise datasets focused on genetics, healthcare could cut back on the massive drug discovery price tag ($25 billion last year, by the way), and accelerate tailored medical research, inching the industry towards value-based care models.
Why CFOs Should Pay Attention
Not only are projects like this vital for advancing research for more informed and generally better medical decisions, they also work towards driving down costs and accelerating care models that will benefit the entire industry.
Many CFOs have expressed high confidence in the economy this year, and are feeling more comfortable with taking risks and investing. When able, CFOs should look to invest in projects like this that further the advancement of medicine to help better the overall healthcare industry outlook. Healthcare is a group effort, and in the long term projects like these are helping the entire industry, which can collectively help drive down costs.
Marie DeFreitas is the CFO editor for HealthLeaders.
KEY TAKEAWAYS
A new project called the Truveta Genome Project, is working towards creating a genetics -based dataset that could have big implications for drug discovery and tailored care models.
The project is a collaboration between Truveta, seventeen different health systems, two biotech companies, and Microsoft.
CFOs should pay attention to projects like this that could have long-term implications for drug costs, care costs and how the industry manages population health.