The Radiological Society of North America is hosting its highly anticipated annual meeting in the vibrant city of Chicago this week. This gathering brings together a diverse community of clinicians and tech professionals from around the world, creating a platform for the sharing of innovative ideas and the showcase of the latest advancements in the radiology field. Year after year, the exhibit hall becomes a bustling hub, with hundreds of companies, ranging from small AI startups to large medtech incumbents, all vying for attention. On Tuesday, I had the opportunity to visit one of these prominent medtech companies, GE HealthCare, to gain deeper insights into its announcements and new products at this year's show.

Unveiling Radiology's Future at the RSNA Annual Meeting

New SPECT/CT Machine by GE HealthCare

GE HealthCare has recently unveiled its remarkable new dual head SPECT/CT machine known as Aurora. This cutting-edge device is specifically designed to expand the range of CT procedures available for patients, aiming to enhance diagnostic accuracy. By combining functional imaging from single-photon emission computed tomography (SPECT) with anatomical details from standard computed tomography (CT) imaging, Aurora holds great promise. Erdogan Cesmeli, the chief strategy, marketing, and commercial officer for GE HealthCare's molecular imaging and CT division, emphasized that Aurora helps clinicians capture both functional and anatomical details of diseases such as cancer and cardiac disorders, which rely on precise localization and early detection. Additionally, the machine offers significant patient comfort with up to 40mm detector coverage and a 75 cm-wide bore, ensuring a more pleasant scanning experience during high-speed scans. Cesmeli also noted that Aurora is equipped with advanced technology for faster rotation speeds and reduced radiation doses. GE claims that the machine can decrease radiation doses by up to 25% without compromising lesion detectability. Currently, Aurora is approved and available for sale in the European Union, but the FDA has not yet given its approval.

Another remarkable innovation from GE HealthCare is the Pristina Via, a new version of their Pristina mammography system. This new machine addresses the growing global shortage of radiologic technologists by automating tasks and streamlining workflows. Laura Hernandez, the chief marketing officer for GE HealthCare's women's health & X-ray division, shared that the system was designed with the input of mammography technologists to address their pain points. The Pristina Via system is equipped with features for zero-click image acquisition, tools to accelerate the comparison of previous exams, and rapid image processing that eliminates wait times between exposures. Hernandez also mentioned that any existing Pristina device can be upgraded to Pristina Via, providing added value to existing users.

The acquisition of Nihon Medi-Physics by GE HealthCare is another significant development. GE announced plans to purchase the remaining 50% stake from its parent company, Sumitomo Chemical. Nihon Medi-Physics is a Japanese company specializing in radiopharmaceuticals used in medical imaging and therapy. Its radiopharmaceuticals play a crucial role in imaging for cardiology, neurology, and oncology procedures. David Morris, the communications director for GE HealthCare's pharmaceutical diagnostics division, pointed out that Japan has the third-largest pharmaceutical market in the world after the U.S. and China and has the largest footprint of cyclotrons, which are essential for producing the radioactive isotopes needed to make radiopharmaceuticals.

New AI to Accelerate MRI Scans by GE HealthCare

GE HealthCare has released Sonic DL for 3D, an AI tool specifically designed to accelerate MRI scans across a wide range of clinical applications. This innovative tool aims to sharpen image quality, enabling radiologists of all experience levels to make more precise diagnoses. David Famorca, the global product marketing manager for GE HealthCare's MRI division, explained that this means radiographers spend less time toggling, resulting in reduced scan times for patients. It's important to note that this is not the first iteration of GE HealthCare's Sonic deep learning model. Last year, the company launched a solution specifically for cardiac imaging. Now, the tool is available for brain, spine, orthopedic, and body imaging as well, providing comprehensive imaging support.

With the impending shift in leadership and the control of Congress by the Republican party, the healthcare industry is on the verge of significant policy changes. These alterations will touch various aspects such as the Affordable Care Act, M&A activities at the Federal Trade Commission, tariffs on medical supplies, and the priorities of the new head of the Department of Health and Human Services. Such changes have the potential to reshape the landscape of healthcare companies and their financial stability.

Unraveling the Effects of the New Administration on Healthcare

Affordable Care Act: A Tale of Uncertainty

President-elect Donald Trump shows little inclination to repeal the ACA. However, House Speaker Mike Johnson has plans for "massive reform" involving Medicare and Medicaid. There's a risk that the 2021 Biden-era premium subsidies may expire in 2025, potentially leaving 4 million people without insurance. This would negatively impact healthcare service providers, especially hospitals, with a higher uninsured population leading to fewer active healthcare seekers and increased bad debt expenses. Without congressional action to extend these subsidies, premium costs could rise by an average of 79%, as estimated by the Kaiser Family Foundation. The Congressional Budget Office predicts that the uninsured rate in the US will increase from 7.2% in 2023 to 8.9% in 2034 due to the subsidy expiration. Medicaid is also under pressure as Trump aims to reduce its financing and may introduce work requirements. This could be detrimental to the healthcare services industry.Medicare Advantage has grown significantly over the past decade, with over half of eligible beneficiaries now enrolled. But the administrative costs associated with these plans pose a challenge for providers. Aggressive expansion of the MA program could be credit-negative.

FTC Lessens Scrutiny on Healthcare M&A Deals

S&P Global analysts expect FTC scrutiny on M&A to ease under the second Trump Administration compared to the Biden Administration's aggressive stance under FTC head Lina Khan. While concerns about pharmaceutical pricing and healthcare costs remain, scrutiny on the healthcare industry is likely to stay high. Decreased FTC scrutiny may boost M&A activities, benefiting pharmaceuticals and healthcare services. Pharma companies are using M&A to diversify portfolios and spur growth in the face of pricing pressures from insurers and stiffer competition. The FTC lawsuit against major pharmacy benefit managers for inflating insulin costs is likely to continue. The FTC has also taken steps to limit non-compete agreements, which could be a wildcard for healthcare service providers struggling with rising labor costs.

Tariffs on Medical Supplies: A Costly Burden

The US healthcare industry is increasingly reliant on imports, especially from China and India. Increased tariffs on medical supplies could raise costs for healthcare service providers already facing inflation and elevated labor expenses. However, the Trump Administration is unlikely to impose hefty tariffs on pharmaceutical imports to lower drug costs. For medical supplies, a tariff increase would be a definite negative. The Biden Administration has been cautious about tariffs to avoid overburdening the healthcare system. It takes time to transition manufacturing to alternative sources.

Broader Regulatory Changes: Implications for the Industry

Potential healthcare agency picks could have a slightly negative impact on the industry. Appointments like Robert F. Kennedy Jr. to HHS could lead to major regulatory changes at agencies like the FDA and the CDC. As the head of HHS, the federal government's endorsement of vaccines could reduce sales of vaccines for shingles, pneumonia, and RSV, affecting companies like GSK PLC, Merck, Pfizer, Sanofi, and AstraZeneca PLC. Kennedy's intention to reform the National Institutes of Health could drastically change the direction of medical research in the US, posing longer-term risks to pharmaceutical companies' new drug pipelines.