The LOUNGE - A Newsletter for Savvy Physicians

We scour the net, selecting the most pertinent articles for the busy doc so you don’t have to! Here’s what kept our focus this week…

• AI might be the most promising “relief resident” medicine has seen in decades.

• The secret to AI-powered creativity isn’t the tool—it’s the thinker using it.

• When your systems crash, IT support stops being “nice to have” and starts being mission-critical.

• Private capital isn’t a billionaire’s club anymore—and entrepreneurs are perfectly positioned to play.

• 80% of healthcare organizations rely on public cloud providers for critical operations.

• Diagnostic data is about to become healthcare’s most powerful secret weapon.

Retrospective - What Actually Worked (And Flopped) for Physician Entrepreneurs

Dr. Mike Woo-Ming pauses the usual Bootstrap MD format for a candid two-part series. In Part 1, he delivers a no-hype 2025 retrospective: the biggest wins (cash/hybrid models, content as infrastructure, smarter investing), the brutal flops (commodity telehealth, passive income myths, unused AI tools), and the quiet trends most doctors missed entirely.

LOUNGE TALK

Physician executive Christina Johns explains how AI can relieve clinicians drowning in administrative work. She argues that burnout is being driven less by patient care and more by non-reimbursable tasks like documentation, coding, and scheduling. Rather than replacing physicians, AI should act as a support system—streamlining workflows so doctors can focus on patients. Johns emphasizes the importance of “connected workflows,” where AI tools integrate across the entire patient journey instead of operating as isolated point solutions. She also warns that only a small fraction of health care leaders currently have a clear AI strategy, leading to fragmented implementations. With proper oversight and “human in the loop” safeguards, AI can reduce cognitive burden and restore the human connection in medicine. The ultimate goal is to help clinicians practice at the top of their license, not at the keyboard.

New research published in the Journal of Applied Psychology reveals that generative AI boosts creativity only for certain employees. The key differentiator is metacognition—the ability to plan, monitor, and refine one’s own thinking. While many organizations expect AI tools like ChatGPT to unlock creativity at scale, only 26% of employees report creative gains, according to Gallup. The study shows that employees with strong metacognitive skills use AI more strategically to expand knowledge, reduce cognitive overload, and break fixed thinking patterns. In contrast, employees with weaker metacognition tend to accept AI’s first output without reflection, limiting creative impact. A field experiment with 250 employees confirmed that AI significantly increased creativity only among those with high metacognition. The takeaway for leaders: rolling out AI is not enough—organizations must also invest in developing how employees think.

Modern businesses run on technology, which makes IT support essential for companies of every size. As organizations grow, their systems multiply, data volumes rise, and the risk of disruption increases—turning tech complexity into a strategic issue. Small businesses often see the biggest relative impact from IT support because even minor downtime can directly hit revenue. Mid-sized firms rely on structured IT support to standardize systems, close security gaps, and scale without chaos. Large organizations depend on specialized IT expertise for cybersecurity, compliance, and continuity planning across multiple locations. The right level of IT support depends on factors like data sensitivity, growth plans, and risk tolerance. Increasingly, companies view IT support not as overhead, but as protection against costly mistakes and lost productivity.

Private capital, once reserved for institutions and ultra-wealthy investors, is increasingly accessible to entrepreneurs and business owners. The article argues that founders are uniquely equipped to succeed in private investing because they already understand risk, long-term thinking, and value creation. Private capital includes private equity, private credit, real assets, and niche opportunities outside public markets. While these investments can offer higher returns, they require patience, due diligence, and comfort with illiquidity. For entrepreneurs, private capital is not just financial—it can align with personal values, communities, and passions. The key is to start small, diversify thoughtfully, and invest with a long-term mindset. In short, entrepreneurs don’t need to change how they think—just where they apply it.

Healthcare is undergoing a massive digital transformation, with cloud computing, AI, and IoT devices reshaping patient care, diagnostics, and operations. While these technologies improve efficiency and outcomes, they also create significant cybersecurity vulnerabilities. Cybercriminals target healthcare more than any other critical infrastructure, with hundreds of attacks annually. Data security challenges are compounded by the use of generative AI, third-party integrations, and complex cloud ecosystems. To protect sensitive patient information, healthcare organizations must adopt advanced frameworks, enforce zero trust principles, and maintain rigorous oversight of regulatory compliance. Strategies like security service edge (SSE) and SASE platforms help centralize threat prevention and data governance. Continuous adaptation is essential, as digital transformation is ongoing and cyber risks constantly evolve. With robust defenses, hospitals can harness technology without compromising patient trust or operational resilience.

Diagnostic data is emerging as one of the most valuable assets in modern healthcare, offering real-time insights into a patient’s biology that traditional claims or EHR data cannot provide. Dr. Bill Kerr of Avalon Healthcare Solutions highlights how combining diagnostic data with AI and analytics enables more precise, proactive, and personalized care. Advanced tests—like polygenic risk scores, liquid biopsies, and neurodegenerative markers—allow clinicians to detect disease earlier, select therapies with higher success rates, and reduce costly trial-and-error treatments. Beyond clinical benefits, diagnostic intelligence helps streamline operations by identifying inconsistencies in test use, delays, and guideline adherence, thereby reducing waste and improving equity. Integrated across labs, provider workflows, and payer systems, diagnostic data aligns care with evidence-based practices and optimizes outcomes. Over time, predictive models improve as more patients are tested, enabling personalized care at scale. Ultimately, diagnostic data is shifting healthcare from reactive treatment to proactive prevention, transforming it into a frontline strategic asset for value-based care.

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QUICK BITES

• A new kind of security risk is emerging. Take these 3 steps to protect your business.

• Be careful buying the dip too often, too soon.

• When there’s nowhere to promote a star employee.

• Venture capital is bouncing back, but not for everyone.

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