Saturday, December 13, 2025

Scott Gottlieb in JAMA: AI Can Solve Productivity Challenges

 I enjoyed this article alot, and it's very germane to current hot topics at CMS (and AMA).   Here's an AI picture, an AI summary, and a link to Gottlieb's open-access article.

###

https://jamanetwork.com/journals/jama-health-forum/fullarticle/2842893


Scott Gottlieb, JAMA Health Forum (2025): 

How AI Will Help Solve Medicine’s Productivity Challenges

His core argument:
Health care appears “unproductive” not because medicine hasn’t improved, but because productivity is measured incorrectly—by counts of visits and procedures, not by health outcomes. This creates a classic case of Baumol’s cost disease, where human-intensive professions (medicine, education, performing arts) improve quality but fail to show output-per-hour gains, suppressing compensation growth and driving costs upward.

What AI actually changes (beyond hype):
Gottlieb’s key claim is that AI must move from augmentation to substitution. Merely making physicians “smarter” does not solve the productivity problem. True productivity gains require AI systems that safely replace discrete physician tasks—diagnostic interpretation, triage, routine decision-making—so that one clinician can effectively care for more patients per unit time.

Why regulation is the bottleneck:
FDA’s framework assumes static devices, not learning systems. Gottlieb argues for a regulatory model that allows controlled algorithmic drift, with predefined performance thresholds and re-review triggers. Without this, developers avoid FDA entirely by labeling tools as “research use only,” sharply limiting real-world deployment.

Why reimbursement is the bigger bottleneck:
CMS does not pay software vendors directly and ties physician payment to labor inputs. Ironically, AI that reduces physician labor can lower RVUs, triggering cuts to physician income.  Physicians must buy productivity-enhancing AI out of their own reimbursement, often with no financial upside.

Policy solutions proposed:

  • Bundle AI into episode payments

  • Expand OPPS pass-through mechanisms

  • Create new benefit categories (e.g., via the Health Tech Investment Act of 2025)
    The unifying goal is to align AI adoption with physician compensation growth, finally breaking the cost-disease trap.

Bottom line:
If AI is allowed to replace physician effort (not just decorate it), medicine could finally follow the same productivity curve as other tech-enabled industries—improving outcomes, stabilizing costs, and restoring physician earnings growth.



What the Hell is MAHA ELEVATE?

You've tried to at least recognize what the new programs ACCESS and TEMPO mean (at CMS and FDA, respectively, but they interact...)

Here's yet another big CMS demonstration/innovation program, MAHA ELEVATE.

I'll give a summary of Trey Rawles' article below.   If you want to start with Trey's whole article, here it is.

https://www.onhealthcare.tech/p/cms-just-opened-a-100m-door-for-lifestyle?'

##

And here's the cut-to-the-chase AI summary:

Trey Rawles argues that CMS’s new MAHA ELEVATE Model represents a quiet but consequential shift in Medicare policy that most investors will overlook. While the program’s $100 million budget—spread across up to 30 three-year cooperative agreements—is small relative to Medicare’s scale, its significance lies in what CMS is choosing to fund. For the first time, the CMS Innovation Center is explicitly testing functional and lifestyle medicine interventions—nutrition, physical activity, stress, sleep, and social connection—that are not currently covered by Original Medicare.

Rawles emphasizes that MAHA ELEVATE is not a coverage decision but an evidence-generation exercise designed to determine whether whole-person lifestyle interventions can improve outcomes and reduce costs for Medicare beneficiaries with chronic disease. Every proposal must include nutrition or physical activity, and three awards are reserved for dementia-focused interventions, signaling CMS’s priorities. Awards average roughly $1.1M per year, with CMS actively involved in program design, data collection, and quality oversight.

The strategic value extends far beyond the grant dollars. Winning an award provides CMS validation, access to Original Medicare beneficiaries, and—most importantly—a potential pathway to future Medicare coverage if strong cost and quality evidence emerges. Rawles argues that companies with documented scientific evidence, real-world outcomes data, HIPAA-ready infrastructure, and integrated, multi-modal interventions are best positioned to win, favoring mature digital health and lifestyle medicine platforms over early-stage wellness apps.

For investors, MAHA ELEVATE de-risks evidence generation for a historically under-reimbursed category and signals a broader CMS pivot toward prevention and lifestyle medicine as complements to conventional care.

Here's Fierce Healthcare.
Here's a time-travel article, back to May 2025, about what HHS wanted to achieve in chronic care innovation.  

Will FDA and Other Digital Pathology Advances Outrun AMA CPT Rules in 2026?

Header:  AMA CPT may soon face a crossroads for modernizing coding of digital pathology.

##

AMA CPT has had limited means of coping with digital pathology and AI, and in some ways, has even regressed.   There is a Category I CPT code for making 1 immunostained slide and interpreting it with computer assistance (88361).   

For several years, AMA also made about 10 codes involving whole slide imaging in the PLA series, but labs that have tried to replicate this have told me that the rules have changed.   If the biomarker requires immunohistochemistry, it may be judged to include "physician work" and therefore ineligible for PLA coding.  (I worked with one lab whose service didn't involve any physician work, and was rejected anyway for "requiring physician work.")  But if the service is based on conventional stains, like H&E, it may be judged as not having a bona-fide biomarker, and therefore ineligible for PLA.   If some of the service is performed offsite, e.g. a cloud algorithm allowed by CAP distributed testing (here), or a separately prepared DICOM file, it may be judged as a multi-lab, not single-lab, service and therefore ineligible for PLA.   If it involves "AI" (and NGS has already involved massive amounts of bioinformatics) it may get shunted into another coding system, a sort of registry for SaMD.  It's like a game of Chutes and Ladders, where there are lots of chutes on every side and not a ladder in sight.

##

Meanwhile, outside of AMA CPT policy, the world is moving fast.   Here are just four examples:

  1. Rakaee's report of deep learning immunotherapy guidance from digital imaging of H&E, reported in JAMA Oncology.  Here.
  2. See similarly, Valanarasu et al., in Cell, on sophisticated proteomic reproduction from AI-assisted readings of H&E slides.  Here.  See insights from two authors at Linked In, here and here.
  3. FDA authorizes a clinical trial biomarker (which may well become a companion diagnostic), used in NASH drug trials and based on software reading of trichrome and H&E sections.  See FDA announcement, here. See the project's webpage for associated documents here.  There, see particularly the FDA integrated review (PDF 52pp).   See discussion at Linked In here.
  4. Meanwhile, and also based on FDA drug trials, see the novel "QCS" AI-assisted immunomarker reading, which can do things that humans simply can't do.   It's a collaborative project for Roche, AstraZeneca, FDA, entry point here.
###
AI CORNER
###
ChatGPT 5.2 reads the essays and articles above, and summarizes.
###

Is scientific reality is outrunning CPT structures?

Friday, December 12, 2025

CMS, FDA: Keeping Up with TEMPO and ACCESS

"Last week, CMS and the FDA announced coordinated efforts to widen access to technology-enabled care for Medicare beneficiaries with certain chronic conditions."  (Orrick)

###

CMS and FDA uaveiled separate but coordinated efforts last week, to catalyze advanced informatics applied to everyday health care.   The ACCESS program will support use of such services, like remote physiological monitoring, by paying for improvements in clinical outcomes like weight and blood pressure.

The TEMPO program will provide structured and monitored waivers to certain kinds of e-health technologies, in particular in the context of the Medicare ACCESS program.

You can google 50 news articles in a second, but here are three law firm-based reviews I found helpful. Further below, I use AI to summarize a 70-minute panel, and, to investigate how the CMS press release about the panel, differed from the actual transcript of the panel.

JD SUPRA - MCDERMOTT

Jeffrey Davis reviews the two programs.

https://www.jdsupra.com/legalnews/access-tempo-the-2-door-entryway-to-1472276/

At ORRICK, another joint review of ACCESS and TEMPO.  By Joseph, Ravitz, Sherer, and Johson (the author list itself sounds like a law firm...)

https://www.orrick.com/en/Insights/2025/12/CMS-and-FDA-Announce-Initiatives-to-Expand-Access-to-Digital-Health-Technologies

At Hyman Phelps, see an article by Jennifer Newberger on ACCESS and TEMPO:

https://www.thefdalawblog.com/2025/12/you-better-move-fast-acess-to-tempo/

MedTechDive also reviews ACCESS and TEMPO together on December 10:

https://www.medtechdive.com/news/fda-digital-health-pilot-cms-tempo/807374/
_______________________

For an original CMS document, see the CMS newsroom, December 5, writing;

Readout: CMS Convenes Leaders Across Government, Clinician Societies, Digital Health Industry to Discuss Innovation Center ACCESS Model

https://www.cms.gov/newsroom/press-releases/readout-cms-convenes-leaders-across-government-clinician-societies-digital-health-industry-discuss

See a one-hour video of the panelists:

https://www.youtube.com/watch?v=vM1guSugkQU


###

Finally, see an entirely separate but also very innovative program, MAHA ELEVATE, discussed in detail by  Trey Rawles here.

###

AI CORNER

###

Chat GPT 5.2 summarizes the YouTube video.  Then, it compares the original video with the CMS press release about the meeting.

What the panel actually did (vs. the press-release version)

The 70-minute event was essentially a three-leg argument for a coordinated CMS+FDA “on-ramp” for digital, technology-enabled chronic care in Original Medicare:

  1. Infrastructure (Health Tech Ecosystem: interoperability, identity, provider directory)

  2. Payment (CMMI ACCESS: outcome-aligned payments; “pay for improvement/control, not app usage”)

  3. Regulatory sandbox (FDA TEMPO: time-bounded enforcement discretion + structured real-world data capture)

What made it interesting for experts is the way speakers repeatedly framed the problem as not “we lack tech,” but we lack (a) scalable payment rails and (b) regulatory clarity for tools that operate between traditional visit-based medicine and continuously measured home-life medicine.


1) Amy Gleason: the “Ecosystem” pitch is about trust infrastructure, not just APIs

Gleason’s segment is less about ACCESS than about CMS trying to finish the last 20% of interoperability that regulation hasn’t delivered: “it should work on paper” but doesn’t in real workflows. Her “sticky” focus was trust:

  • National Provider Directory as routing infrastructure (apps know where to query).

  • Modern digital identity (medicare.gov identity layer; “trust that the person asking is who they say they are”).

  • The rhetorical “47 patient portals” anecdote is doing policy work: it reframes interoperability as consumer experience failure, not vendor compliance.

The important subtext: CMS is positioning itself as an enabler of an app ecosystem (patient-chosen apps, QR/smart health cards, conversational AI layer) rather than a single CMS-owned solution. It’s “voluntary, fast, months not years,” with “pledges” and working groups—a deliberate contrast with the historically slow regulatory path.


2) Dr. Oz: ACCESS as a cost-curve play with a “make it a business” posture

Oz makes two notable policy claims:

  • The macro problem is health spending growing ~8–9% vs GDP, and he links that to information/transparency and patient empowerment (market-like behavior).

  • He explicitly says CMS wants innovators to make money building solutions—but only if outcomes move. This is unusually direct language in a CMS forum.

He then sketches ACCESS as a 10-year voluntary model providing an “on-ramp” for digital health in Original Medicare, explicitly tying it to rural policy and workforce scarcity. The subtext: ACCESS is being sold as Medicare modernization and as an industrial policy lever (“open for business”), while still needing OACT-friendly “savings” logic.


3) Jim O’Neill: HHS AI Strategy 1.0 + “regulatory clarity” + data visibility

O’Neill’s remarks are the clearest “whole-of-HHS” frame:

  • Internal AI adoption: custom LLM(s) deployed to 65,000 employees, explicitly framed as productivity and speed (fraud, claims adjudication, grant reviews, FDA review acceleration).

  • External vision: three pillars—reimbursement pathways, regulatory clarity, and R&D targeting.

His most pointed (and controversial) line for experts is the claim that a “key pillar” is visibility into de-identified patient data for payers/patients/providers to create a continuous improvement feedback loop. That’s a strong signal about real-world data as policy infrastructure, and it implicitly nudges debates about governance, consent, and secondary use.

He also explicitly name-checks TEMPO before FDA speaks, making clear it’s meant to be fast access + controlled learning.


4) ACCESS model mechanics (Jacob Shiff): outcome-aligned payments + referral rails + public outcomes

Shiff’s 10 minutes are the “operational kernel,” and there are a few design choices experts will notice:

  • Outcome-aligned payment: predictable payments with full earn-out when patients improve relative to baseline (BP, pain symptoms, etc.).

  • Tracks: grouped conditions for integrated care (signals intent to avoid “one app per diagnosis” fragmentation).

  • Care modality flexibility: virtual/asynchronous/in-person—explicit anti-micromanagement stance (“not micromanaging practice of medicine”).

  • Cost sharing: participants may collect or forego beneficiary cost-sharing (a lever to reduce friction; also a potential competitive variable).

  • Provider/supplier enrollment + HIPAA covered entity + clinical director: a “we’re not letting fly-by-night apps bill Medicare” posture.

  • Referral + co-management payment: referring clinicians can refer without 1:1 contracting; there’s a new co-management payment (no beneficiary cost sharing) for documented review/coordination. This is a practical attempt to avoid the classic failure mode: “specialty digital program runs parallel to primary care and nobody gets paid to integrate it.”

Big signal: CMS intends to maintain a directory of participants including risk-adjusted outcomes. That’s not just payment; it’s a market-making transparency tool (and it tees up methodological fights about risk adjustment, gaming, and measure selection).

He also claims demand: 250+ tech-enabled organizations submitted intent-to-apply within ~2–3 days. Whether that holds up is a later question, but it’s being used to argue “the ecosystem is ready.”


5) The society panel: it’s about workforce, data usability, and measurement sanity

This panel (AMA, ACC, APA) is less “rah rah digital” than “here’s where digital fails in clinic.” Three threads dominated:

A. Burnout is not only paperwork; it’s data overload + low-value measurement

  • AMA’s Whyte: clinicians don’t need “more data,” they need better data (continuous, personalized, outcome-linked). He also warns against being held accountable for outcomes clinicians can’t plausibly influence (food insecurity example).

B. Behavioral health: outcomes are “hard,” but we already have usable proxies

  • APA’s Trestman: acknowledges no biological equivalent of A1c yet, but argues that consistent use of PHQ-9 / GAD-7 can operationalize outcomes and—crucially—motivate patients when they see trend lines. He frames this as measurement-informed care that empowers patients, not just reporting burden.

C. Cardiology: the bottleneck isn’t biomarkers; it’s scaling programs into low-margin/rural systems

  • ACC’s Bhatt: home BP monitoring programs work, but don’t scale due to payment + implementation costs, especially in net-zero margin settings. She emphasizes “baseline” and personalization (your normal vs population normal), and repeatedly ties ACCESS to “creating a mechanism” to collect data and intervene where there’s currently zero access.

Notable “flash round” moment:

  • Whyte picks sleep as the under-measured outcome that matters and is increasingly measurable via wearables—but immediately ties it to the practical chain: fidelity → reimbursement → EHR integration → payer acceptance. That’s a neat encapsulation of the “payment/regulatory rails” theme.

  • Bhatt wants a metric for “patient feels like a partner in care” (not mere engagement). That’s conceptually important because ACCESS is outcome-aligned, but the panel is warning that relationships and agency are key mediators—hard to capture, easy to ignore, and easy to accidentally harm with poorly designed incentives.

  • Trestman says the key isn’t a new measure; it’s turning data into usable, integrated information at point of care.

The panel’s “success state” predictions converge: more care shifts to home/ambulatory, clinicians get time back, and patients feel “seen.”


6) TEMPO (FDA): the genuinely novel piece—enforcement discretion + real-world data under ACCESS

Traficant’s TEMPO description is the sharpest new policy mechanism in the event:

  • For certain digital health devices that would typically require FDA premarket authorization but don’t yet have it, TEMPO allows manufacturers to request FDA enforcement discretion when deployed within ACCESS, under a risk mitigation + monitoring + reporting plan negotiated with FDA.

  • ACCESS becomes a controlled deployment environment that generates real-world performance data that may support future FDA marketing authorization.

  • Requires enhanced consent: beneficiaries are told it’s an FDA pilot and that certain data will be shared with FDA (within privacy/security standards).

In plain English: TEMPO is a regulatory sandbox tightly coupled to a CMS payment model, with RWE as the bridge. For experts, the questions this tees up are immediate: scope (which devices), boundary conditions on “discretion,” what data is “ordinarily reported” vs incremental TEMPO data, and how consent + governance will be operationalized at scale.


The through-line: ACCESS is a payment model; TEMPO is an RWE-enabled regulatory ramp; the Ecosystem is the trust plumbing

The event’s key move is that CMS and FDA are trying to make digital chronic care in Original Medicare legible and financeable while keeping a safety narrative:

  • Outcome-aligned reimbursement to avoid “paying for churn.”

  • Transparency (risk-adjusted outcomes) to foster competition and referrals.

  • Regulatory discretion under monitored conditions to speed access without pretending safety review is optional.

If you want, I can also produce a second version as (a) a one-page “expert memo” with policy implications + likely implementation failure modes, or (b) a short set of “watch items” (e.g., measure selection/risk adjustment, consent + data governance, how co-management payments interact with existing RPM/CCM, and what kinds of devices TEMPO will actually include).

###

###

What do you see in the whole 70 minute video, that isn't summarized in the CMS press release about the video.

###

###

The CMS press release is a tight, curated “what happened + what it is” summary; the 70-minute panel is the operating logic, governance posture, and (importantly) the frictions that the press release deliberately smooths over.

What the press release does (and why it feels “about the same”)

It’s basically a single narrative arc:

That’s it: announce, legitimate, de-risk, invite. It’s not trying to teach anyone how this will behave in the wild.

What the panel adds that the press release largely omits

The panel isn’t just longer—it contains different types of information:

1) The “platform” backstory (Health Tech Ecosystem)
In the panel, ACCESS is positioned as the payment engine for a broader digital plumbing agenda (interoperability infrastructure, patient-facing ecosystem). The press release only gestures at “modernizing the digital health ecosystem.” (Centers for Medicare & Medicaid Services)

2) Implementation mechanics (how ACCESS actually functions)
The panel version (and the supporting CMS model materials) gets into what sophisticated readers care about:

The press release stays at the “model exists” layer. (Centers for Medicare & Medicaid Services)

3) The measurement politics (what counts as an “outcome,” and what clinicians will tolerate)
The society panel spends real time on: data quality vs data volume, clinician burnout from measurement, behavioral health measurement pragmatics (PHQ-9/GAD-7 style tools), and even “what outcome we wish we could measure” (e.g., sleep as a health signal; “patient-as-partner” sentiment). 

None of that appears in the press release because it’s not message discipline—it’s the actual tension that will shape uptake.

4) The regulatory posture is more candid (TEMPO as a sandbox)
The press release: “FDA discussed TEMPO…collecting, monitoring, reporting real-world performance data.” (Centers for Medicare & Medicaid Services)
The panel (and FDA’s own release / CMS FAQ): TEMPO is explicitly a risk-based enforcement discretion pathway for certain digital health devices that would typically require premarket authorization, paired with real-world data generation and enhanced consent in a controlled context. (U.S. Food and Drug Administration)

That’s a materially different “feel”: not just coordination, but a deliberately engineered regulatory/payment coupled experiment.

The practical punchline

If you’re an engaged expert, the press release tells you what CMS wants the world to repeat

The panel tells you how CMS/HHS/FDA think this will work, where the adoption bottlenecks are (measurement burden, data integration, rural capacity, workforce constraints), and what their regulatory/payment theory of change is—i.e., how ACCESS + TEMPO is supposed to create an evidence-generating flywheel rather than a one-off demo. (Centers for Medicare & Medicaid Services)


Republican Health leader Joe Grogan Interviews Deputy Secretary of HHS on AI

There's been a flurry of AI-related news this week, including in healthcare.  See a December 12, 2025, article at Fierce Healthcare where Republican policy expert Joe Grogan interviews HHS Deputy Secretary O'Neill on the administration's vision for AI in healthcare.

See the article here.

At HHS, O’Neill is looking for lighter-touch AI regulation at HHS, arguing FDA and CMS delays are distorting markets, not protecting patients. He highlights a real behavioral consequence: companies deliberately avoid FDA pathways, market as consumer tools, then backfill regulation later—an inefficiency he wants to eliminate via earlier regulatory clarity. HHS is operationalizing this stance through paired ACCESS (CMS reimbursement) and TEMPO (FDA regulatory deferral) models. Internally, HHS has already deployed multiple LLMs agency-wide and is using AI to detect weak signals across datasets. Notably, O’Neill rejects industry intermediaries (e.g., CHAI), inviting direct regulator–company engagement instead.

O'Neill served in the GW Bush administration (2004-2008), then shifted to Silicon Valley including CEO of the Thiel Foundation.    

Joe Grogan is a Republican health policy expert who worked in biopharma government affairs and in the "Trump I" White House.  More recently he's been a leader with Paragon Health Institute and Fire Arrow LLC.    For over a year, Grogan has hosted the podcast "DC EKG."

https://www.iheart.com/podcast/269-dc-ekg-107541606/


Here are two recent samples from DC EKG.

Fixing Obamacare Without Repeal: Tony LoSasso on Competition, Subsidies & Fiscal Reality

December 10, 2025 • 44 mins

In this episode of DC EKG with Joe Grogan: A Healthcare Policy Podcast, Joe sits down with health economist Tony LoSasso to dissect what serious, workable Obamacare reforms could look like without blowing up the Affordable Care Act entirely. They dig into the structure of healthcare subsidies, why current premium tax credits dull price sensitivity, and how that undermines insurance competition, drives up healthcare costs, and threatens the law's fiscal sustainability. Tony lays out a path to modernize the ACA with defined-contribution-style subsidies, patient-directed “health freedom” accounts, and targeted support for people with preexisting conditions through high-risk pools, rather than hiding transfer programs inside community-rated premiums. Along the way, they tackle essential health benefits, community rating, Medicare pricing, certificate-of-need laws, and growing hospital market concentration, and ask what a real bipartisan healthcare reform deal might look like in today’s political climate.

Inside the Business of American Healthcare with Wharton’s Dr. Lawton Burns

August 24, 2025 • 55 mins

Join host Joe Grogan for an exclusive masterclass with Dr. Robert Burns, James Joo-Jin Kim Professor of Health Care Management at the Wharton School. A nationally recognized expert on the U.S. healthcare system, Dr. Burns unpacks the complex forces driving healthcare costs. With a background in sociology, anthropology, and decades of research, Dr. Burns reveals why so many healthcare reforms fail, what policymakers and business leaders get wrong, and how the U.S. healthcare ecosystem really works behind the headlines. If you’ve ever wondered why American healthcare is so expensive, and what can actually be done about it, this episode is a must-listen.



Sunday, December 7, 2025

Humor: Medicare Non-Coverage of Stethoscopes, Microscopes, and X-Rays

I was somewhat annoyed by a new LCD announcing broad Medicare non-coveage of AI in imaging. (Here).

 I asked Chat GPT to review Medicare coverage of stethoscopes, microscopes, and x-rays.

###





1. Non-Coverage Determination: 
The Stethoscope (circa 1859)

Coverage Indications, Limitations, and Medical Necessity

This Local Coverage Determination (LCD) establishes non-coverage for the “stethoscope,” a newly introduced acoustic apparatus purported to aid in the detection and localization of thoracic and cardiac phenomena. Although early reports suggest that the device enables auscultation at a distance, there remains insufficient evidence to conclude that the instrument improves clinical outcomes, enhances diagnostic accuracy, or alters patient management when compared to traditional direct examination methods, including palpation, percussion, and visual inspection.

Summary of Evidence

A limited number of peer-reviewed case series assert that the stethoscope allows practitioners to identify internal bodily sounds without pressing an ear directly to the thoracic wall. However, studies conducted to date are small, narrowly focused, and generally lack rigorous methodological controls. No randomized investigations have demonstrated superiority of the device over skilled bedside examination using established techniques. Furthermore, available reports derive mostly from highly specialized academic hospitals in Paris and London, limiting generalizability to the broader U.S. population, particularly in rural and frontier regions where medical infrastructure is limited, as is exposure to cheese and croissants.

In addition, significant concerns exist regarding operator dependency. Effective use of the stethoscope appears to require specialized training in acoustic interpretation, a skill not widely available among current practitioners. The absence of standardized protocols for device use raises risk of misinterpretation, particularly among those with minimal experience. Importantly, many physicians have practiced successfully for decades using traditional examination methods, raising substantial uncertainty as to whether the incremental diagnostic insight achieved through this new device will translate to meaningful clinical benefit.

Analysis and Determination

Given insufficient evidence of clinical utility, lack of standardized training, absence of consensus guidelines, and unclear generalizability across care settings, the stethoscope remains investigational. Accordingly, Medicare will not provide separate reimbursement for its acquisition or use. Practitioners may continue to rely on proven, long-standing physical examination techniques that have ensured safe and effective care.


2. Non-Coverage Determination: 
The Microscope (circa 1890)

Coverage Indications, Limitations, and Medical Necessity

This LCD establishes non-coverage for the use of “microscopy” in routine clinical practice. Although preliminary investigations have reported that microscopic examination of tissues and fluids may reveal minute structures not visible to the naked eye, broad enthusiasm for this technology remains premature in the absence of robust evidence demonstrating improved patient outcomes.

Summary of Evidence

Proponents assert that identifying microorganisms, cellular irregularities, or “germs” could facilitate early, targeted interventions. However, most such claims derive from academic investigators who are simultaneously developing both the theories and the instruments used to prove them. This creates substantial risk of confirmation bias and undermines confidence in the results.

Current literature is composed primarily of small, observational studies conducted by highly specialized researchers with advanced technical knowledge. No multisite investigations have demonstrated that microscopic identification of organisms leads to improved clinical decision-making, reduced morbidity, or enhanced survival relative to standard care pathways, which include physical examination, symptom monitoring, and empiric treatment. Importantly, empiric therapies remain widely accessible, inexpensive, and effective across a range of common conditions.

Moreover, microscopy requires a significant investment in specialized equipment and technical labor, including specimen preparation, device calibration, and interpretation by trained observers. No evidence establishes that such investments are sustainable or scalable in typical practice settings, particularly those serving Medicare beneficiaries in rural communities. Variability in operator skill, specimen quality, and device manufacturing raises additional concerns regarding reliability, reproducibility, and equity of access.

Analysis and Determination

Absent compelling data linking microscopic examination to meaningful patient benefit, and given substantial barriers to training, standardization, and implementation, Medicare does not consider the microscope “reasonable and necessary.” The technology remains experimental, and its value should be evaluated within research settings rather than routine clinical care. Clinicians should continue to rely on established methods that have served patients for generations.


3. Non-Coverage Determination: 
Medical X-Ray Imaging (late 1890s)

Coverage Indications, Limitations, and Medical Necessity

This LCD outlines non-coverage for the emerging practice of radiographic imaging, also known as “X-ray,” which claims to produce internal anatomical pictures via exposure to novel electromagnetic emissions. Although proponents have reported images suggestive of bones, organs, or foreign bodies, current evidence does not demonstrate that these images improve diagnosis, management, or outcomes when compared to existing clinical assessment standards.

Summary of Evidence

Early case reports describe individual anecdotes in which fractures or swallowed objects were visualized using X-ray exposure. However, these findings lack methodological rigor, are limited to extremely small sample sizes, and have not been replicated in representative populations. No randomized trials have established superiority over thorough physical examination, patient history, and surgical exploration when indicated.

Additionally, radiographic images vary substantially based on operator technique, equipment design, exposure intensity, and patient positioning. There are no accepted standards for image quality, calibration, or interpretation. Consequently, reproducibility and safety remain uncertain. Further research is needed to establish whether operators across diverse settings can reliably acquire and interpret radiographs with minimal risk to patients or themselves.

Notably, early reports reveal a subset of practitioners who cite potential adverse effects from repeated exposure to these emissions, including skin irritation, burns, and possible long-term consequences. Without comprehensive safety data, routine deployment among Medicare beneficiaries—who may require frequent imaging or have comorbid vulnerabilities—would represent an unacceptable risk.

Analysis and Determination

Given the absence of compelling evidence demonstrating improved outcomes, significant variability in device performance, lack of standardized protocols, uncertain safety profile, and unclear scalability, X-ray imaging is considered investigational. Medicare will not provide reimbursement for its use. Providers are encouraged to continue employing established diagnostic techniques, including physical examination and surgical exploration as clinically appropriate, which remain safe, effective, and well-validated.


 

CMS Expert Becomes Deputy Director of CBER at FDA

Many of us who've worked for some time in genomics will remember Katherine Szarama PhD, who was one of the CMS coverage group staff assigned to the ground breaking NCD guaranteeing coverage of FDA-approved NGS companion diagnostics (e.g. Foundation Medicine circa 2017).

Szarama is now Deputy Center Director for CBER, the center for biologicals at FDA.   

Find her at Linked In:

https://www.linkedin.com/in/katherine-b-szarama-phd-627a172b/

Szarama worked at CMS 2016-2019.  She left CMS to join the Emerson Collective, then Arnold Ventures 2022-2025.   She was with the Advanced Research Projects Agency for Health, ARPA-H, most of 2025, January to fall 2025, before shifting over to the FDA.

See also a note at RAPS.org,

https://www.raps.org/news-and-articles/news-articles/2025/10/this-week-at-fda-more-layoffs-at-hhs-prasad-s-cbe

Noting,

According to MedPage Today, Vinay Prasad, the director of CBER, has started to shape his new  staff, as announced in an email to his colleagues. Katherine Szarama, PhD, has been appointed acting deputy director of CBER. She previously worked at the Advanced Research Projects Agency for Health and the Centers for Medicare and Medicaid Services before joining the FDA. Prasad noted that Szarama “will focus on policy and governmental relations while also participating more broadly within the center.”



MAC Issues LCD on Automated Detection of Brain MRI's: NO COVERAGE

 The CGS MAC has issued a final LCD on "Automated Detection and Quantification of Brain MRI's", L40224.   The proposal appeared on  September 25, with comment to November 8.  The final appeared December 4, with a "notice period" until January 18.  The LCD was "MAC initiated."

I check new LCD postings every Thursday and I don't recall seeing DL40224.   The non coverage statement is simple:

  • This is a non-coverage policy for artificial intelligence assistive software tool for automated detection and quantification of the brain.

I would note the author who thinks this way might also write"non coverage...automated detection...whole slide imaging."

The LCD has 54 citations, some (by no means all) on ARIA, brain defects seen on amyloid therapies.

The MAC notes that "no comments were received."  (?!)

This is the concluding rationale for non coverage:

While investigations have been exploring the potential of automated quantification technology for evaluation of ARIA, MS, TBI, epilepsy, brain tumors and other neurological conditions, this has been challenged by lack of established standards for measurements and access to large datasets to train the devices. While expert radiologists read the images based on visual patterns these programs quantify the brain volumes. While this is promising there is a lack of standards to establish what the normal values for brain volumes should be and each program has proprietary data so it is not interchangeable. There is not sufficient diversity within the data sets used to train the models to ensure changes based on age, gender, or ethnicity are accounted for. This is especially pertinent in the Medicare population as there are changes to brain volume related to age and with lack of standardized data it is challenging at this time to ensure subtle changes represent pathology and not variations of normal. At this time there is not sufficient clinical utility or validity data and use of this technology is considered investigational and not covered. CGS will continue to monitor the progression of research for these devices.


 Not sure what to make of this. See a sidebar humor essay - Medicare non-coverage of newfangled stethoscope, microscope, and x-ray.  Here.

Friday, December 5, 2025

Freenome - Keeping On Top of Its Announcements (SPAC, More)


Freenome made a big splash in 2019, when it closed a sizable $160M funding round as its Series B (here).  Now, December 5, 2025, there were a number of announcements and documents - let's catch up with recent Freenome news.

First, in June 2025, Freenome had a JAMA publication for blood-based CRC screening that met CMS coverage requirements under the CRC screening NCD.  Here.  See Shaukat et al. here.

Second, in August 2025, Freenome announced an exclusive license agreement with Exact Sciences, for Freenome's colorectal cancer blood-based screening test.  Here.  Freenome framed the deal as "worth up to $885M" including milestones.

Third, in mid-November, Freenome announced another exclusive agreement, this one with Roche and for out-side-the-US test commercialization.  Here.   This deal was framed as "worth $200M plus" and increasing Roche's investment in Freenome via a "$75m equity instrument."

Next, on December 5, 2025, Freenome announces an agreement to make a business combination (i.e. to take Freenome public0 via a SPAC-type mechanism.  Here.  The package involves Freenome, PCSC (Perceptive Captial Solutions Corp) and PIPE investors.  Completion is "first half of 2026" and the ticker will be FRNM.  The $240M value includes $90M held in PCSC currently.

The deal involves: "The PIPE is led by Perceptive and RA Capital with participation from ADAR1 Capital, Bain Capital Life Sciences, Farallon Capital Management, as well as other new and existing leading healthcare investors."

##

See early coverage at Fierce Biotech.  At STAT+.

##

The PCSC K-8 announcement is online at SEC - here.  

Scroll to the bottom and there are 8 additional links - one of which is a new investor presentation (deck) which is 51 pages long.   The deck also has data on Freenome's CRC V2 test - see e.g. page 13.

See also a detailed business combination agreement - here.

51-page deck online at SEC




Thursday, December 4, 2025

Prolific at Linked In: Jose Pereira Leal (Diagnostics Strategies)

 Jose Pereira Leal is a prolific author at Linked In:

https://www.linkedin.com/in/pereiraleal/

See e.g. his June essay, "Lessons from the validation trenches of biomarker development,"

https://www.linkedin.com/pulse/from-promising-proven-lessons-validation-trenches-jose-pereira-leal-jh2ff/

He has a new pair of articles, "Rebuilding the Case for Diagnostics Investment," parts 1 and 2.

Part 1

Part 2

Part 1 opens like this:

The diagnostics sector faces a paradox: we're living through a precision medicine revolution, yet the tools that make precision medicine possible remain chronically underfunded.

In 2023-2024, diagnostics captured just $2.2 billion in global venture funding, while AI companies raised over $100 billion globally in 2024. Even within healthcare, nearly 30% of the $23 billion in US healthcare VC funding went to AI-focused startups, leaving diagnostics fighting for scraps.

Why does the market avoid a sector that underpins every major advance in modern medicine?

The Perfect Storm of Disincentives.... 


####

He is also author of the book, Precision Diagnostics [views from the trenches].



###
AI CORNER
###

Chat GPT 5 summarizes "Building the Case - Investments in Dx" Parts 1 & 2.

####

Below is a ~400-word integrated summary of both essays for graduate-level readers of your diagnostics strategy blog, synthesizing Part 1 (entrepreneur perspective) and Part 2 (investor perspective).


Summary (≈400 words)

The two essays argue that diagnostics are systematically undervalued, not because they generate weak economic returns, but because entrepreneurs and investors apply frameworks borrowed from biotech, SaaS, and medtech that misinterpret the category’s timelines, value drivers, and risk profile. Diagnostics occupy an unusual middle ground: development cycles of 7–10 years, regulatory complexity (IVDR, FDA, CLIA), and reimbursement friction make them slow to scale, yet their commercial upside rarely achieves drug-like revenue multiples. Because venture models are calibrated for either hyper-scaling software or blockbuster therapeutics, diagnostics appear to suffer from “ugly duckling” economics.

The author argues this perception is outdated. Precision medicine is producing captive markets for companion diagnostics, validated datasets create defensible assets, regulatory complexity functions as a barrier to entry, and high-value diagnostics can support premium reimbursement when positioned as clinical decision infrastructure rather than commodity testing. Additionally, risk-adjusted returns compare favorably to pharma: diagnostics require 1/10 the capital and offer higher hit rates with shorter cycles to revenue, even if individual exits are smaller. This creates a genuine arbitrage opportunity for disciplined capital.

Part 1 offers strategic guidance for founders: build with pharma rather than parallel to it; treat data as the product, not exhaust; embrace regulatory barriers as moat; price based on clinical and economic impact, not cost-per-test; and build platforms that enable expansion of indications and revenue streams. The central thesis is that diagnostic businesses should be understood as infrastructure for precision therapeutics, rather than isolated products.

Part 2 shifts to an investor framework, arguing conventional staging models fail because they focus on validation checkpoints rather than business model de-risking. The standard linear progression—analytical validation, clinical trials, regulatory approval, commercialization—ignores the much harder work of market adoption, including guideline inclusion, physician behavior change, reimbursement, workflow integration, and payer contracting.

The author proposes diagnostics-specific evaluation criteria based on explicit business model archetypes (single-test, platform, data-as-product, companion diagnostic) and on identifying and de-risking 3–4 core assumptions that determine value creation. Investors should intentionally structure portfolios to leverage technology, data, commercial, and evidence-sharing synergies, and provide ecosystem-level capabilities in regulatory strategy, clinical evidence architecture, payer engagement, pharma partnerships, and health-system integration.

Ultimately, the essays contend that diagnostics are mispriced assets, not weak assets, and that founders and investors who adopt category-specific strategies can exploit a major market inefficiency as precision medicine becomes standard of care.


If you’d like: a shorter “executive version,” a more polemical version for Substack, or a version with takeaway bullets for board presentations, I can tailor it.

Tuesday, December 2, 2025

Senator Escalates Concerns about AMA "Monopoly" (Coding)

On December 2, 2026, Washington Post features a story on Sen. Cassidy's escalating tensions with AMA, regarding coding and the RVU payment system.  The Senator kicks off by asserting that AMA's response to an October 6 letter "was anything but open and transparent."

  • See our October 29 blog on this topic here.
  • See updates, December 2 at Washington Post,here.
  • See the new 5-page Senate letter to the FDA, dated December 1, here.
    • Tangent: Negative article in WSJ about ABMS American Board of Medical Specialities, here.

AMA Summit on Digital Medicine

The exchanges come as AMA is on the brink of holding a major summit meeting in Chicago, December 8, on the future of new technologies coding and reimbursement, covering digital medicine, digital pathology, and AI.   More here.

CMS Innovative Work-arounds for Digital Reimbursement

And the letters, and that AMA meeting, come just as CMS announces its CMMI "ACCESS" model, under which some new, FDA-approved software-based or software-intensive interventions like remote monitoring will be reimbursed directly by Medicare as part of its new comprehensive approaches to chronic disease management, potentially outside the usual CPT coding channels.  Entry point here.


Monday, December 1, 2025

El-Khoury & Zaatari: Pathologist, AI, and the Future. Plus lots of great citations.

I probably saw this post via someone at Linked-In, but I've mislaid how I heard about it.  

Worth reading, a new open-access paper, which projects into the future and asks if pathologists will be "partners" or "bystanders" to AI.

Find the September 2025 paper by El-Khoury and Zaatari online at Diagnostics, here:

https://www.mdpi.com/2075-4418/15/18/2308

In addition to the main story, the article offers an excellent bibliography of nearly 100 references, some of them hard to find (history of microscopes), many others up-to-date through 2025.


####

Sidebar:
I asked Chat GPT to compare the history of autopilots in airlines (1940-2025) to the future of pathologists in the AI lab (2025-2050).  Here.

###

AI CORNER

###

El-Khoury and Zaatari provide a sweeping, historically anchored analysis of how digital pathology and AI are jointly reshaping diagnostic practice, culminating in the provocative question of whether pathologists may eventually become “bystanders” in workflows they once wholly governed. They trace the discipline’s evolution from early microscopy and microtechnique innovations to contemporary whole-slide imaging (WSI)—establishing digital pathology as the essential substrate upon which AI systems now depend. This historical framing underscores that AI represents not merely another tool but a structural inflection analogous to the rise of cellular pathology itself.

Communications Expert Assesses Trump-Mamdani Conference, Line by Line

On YouTube, communications expert Chris Miller goes through the Trump-Mamdani Oval Office meeting and describes his view of how each politician handled framing, seizing initiative, dodging conflict, etc.

You don't have to buy into every single idea the communications expert has, to benefit from this magnifying-glass view of the dialog.    Watch it online - 15 minutes - or I've included a transcript below.

https://www.youtube.com/watch?v=Ju0URMztrzs


####

Transcript from Rev.com from link.

Chris Miller:

Okay, no one would expect this, but President Trump and New York City Mayor like Mamdani just met in the Oval Office at the White House. And the presentation they just gave to the media and the question and answer portion was surprising.

 

LegislationWatch: Proposed: Bill for Alzheimer Blood Testing in Medicare, H.R. 6130

Legislation watch:  A bill is introduced which would cover preventive screening with blood tests for Alzheimer's disease.   

The legislation -as proposed - would create a new benefit at 1861(s)(2), under KK, Alzheimer early detection test (follows the recently added JJ, lymphedema compression services).  And (nnn) defines these as proteomic, genomic, etc - very broadly. 

###

See also this week:

JAMA Meta-Analysis of Tau217 plasma diagnostics, Malek-Ahmadi et al.  

JAMA Op-Ed, 'Blood Tests for Alzheimer Disease - What to Do with the Holy Grail' by Grill.

###

Repr. Buchanan (R-FL) had early publicity November 7 at AXIOS - here.

See the November 19 press release about the bill - here.

Read the bill posted at Congress.gov as HR 6130 - here.


##

Humor: When Medicare Pays for a Covid Test / Nursing Home

From time to time I have work related to Medicare's 14-day-rule, which is difficult to explain even with graphics and charts.

This looks like comparable complexity: When does Medicare pay for a nursing home Covid test?   Sit down and take your hat off, this will be a while.


See link for several pages of additional explanation.
https://www.cms.gov/files/document/covid-medicare-payment-covid-19-viral-testing-flow-chart.pdf

Saturday, November 29, 2025

Noted: Luis Cano's Essay on "Invisible War in Digital Pathology"

 Luis Cano MD PhD is a Paris-based expert on digital pathology.  Find his Linked in here.  His article feed here.   His Substack articles, "Beyond the Slide," here.

His new 5000-word mega-essay about digital pathology system dynamics:

https://beyondtheslide.substack.com/p/the-invisible-war-in-digital-pathology

By the way, the bibliography of his new article is quite impressive too.

Enjoy the original essay but here's a 300 word summary (AI):

Digital pathology, Cano argues, is less a neat “digital upgrade” and more an invisible war: a messy, protracted collision between technology that already works and systems that are nowhere near ready to absorb it. The microscope era was stable, tactile, and culturally entrenched; digital workflows turn glass into data, demanding scanners, clouds, networks, standards, and cybersecurity. 

COVID accelerated adoption by necessity, proving feasibility but also exposing fragile infrastructure and improvisational workflows, especially in low-resource settings where digital tools could help most but basic prerequisites—power, bandwidth, capital—are lacking. The result is a tug-of-war between an analog world that won’t die and a digital one not yet fully born.

The conflict is driven less by algorithms than by misaligned incentives and timelines. Startups sprint on 18-month venture clocks; hospitals move on 5–10-year cycles; pathologists, as final signatories, face an identity and liability crisis. 

Economics form a central minefield: capital costs are huge, ROI is mostly indirect efficiency, and reimbursement for digitization or AI is nascent and fragmented. Technologically, proprietary formats, weak interoperability, domain shift, and brittle real-world performance keep AI stuck in “demo mode.” Regulatory fog deepens the tension: the FDA’s PCCP and the EU AI Act try to tame evolving, data-hungry models with frameworks built for static devices, while liability for AI-driven errors remains unclear.

Cano’s core thesis is that progress hinges on alignment, not more clever models. He points to federated and swarm learning, shared infrastructures like BigPicture, and human-centered design as early blueprints for cooperation. The future pathologist becomes an integrator of multi-modal information, not a human scanner; AI should amplify rather than replace. The “war” ends, he suggests, when stakeholders stop behaving like rival armies and start acting as architects—building standards, economic models, regulations, and lab designs that are interoperable, explainable, and explicitly human-centered.

Not Bad for a Machine: Chat GPT Offers to Review CMS & AI for Me

For almost three years, I've had a $20 a month subscription to Chat GPT.  Like other AI's, the home page me offers me topics for the AI to discuss (as if I could think of none, myself?)

This morning the home page of Chat GPT offered me:

  • What are the latest CMS policy updates on AI reimbursement and digital health? Any new regulations or pilot programs worth noting?

I thought, OK, it's a holiday, I'll bite.   

Here's what I got.  

NOTE: I would not necessarily make the same recommendations or emphasize the same things as Chat GPT.  What follows is offered only as an example of automated internet research and automated conclusions and summaries.

I asked it about turnkey venders for remote monitoring; in that section, I've stripped the websites it found but left the AI text.

Remarkable Series of Articles on Digital Medicine from Flavio Angei (Linked In)

I've started noticing the rapid flow of articles highlighted every week by Flavio Angei at Linked-In.

Find his home page here:

https://www.linkedin.com/in/flavio-angei-b5476841/


This should take you to his Linked-In postings:

https://www.linkedin.com/in/flavio-angei-b5476841/recent-activity/all/

He highlights top papers in digital medicine from a wide range of journals.

  • Evolving health technologies: Aligning with and enhancing the NIH Care Excellence Standards Framework.
  • Success factors for sclaing patient-facing digital health technologies: Leaders' insights
  • Navigating regulatory challenges across the life cycle of SaMD
  • LSE: Evaluation framework for health professionals' digital health and AI technologies.
  • Rethinking clinical trials for emdical AI with dynamic deployments of adaptive systems.
  • AI policy in healthcare; A checklist-based methodology for structured implementation.
  • Artificial intelligence in key pricing, reimbursement, market access processes.  Faster better cheaper - Can you really pick two?
  • Systematic review of cost effectiveness and budget impact of AI in healthcare.
  • Commercialization of medical AI technologies: Challenges and Opportunities

Etc etc etc....


___

Goranatis et al. Weigh In on "Value & Valuation" of Genomics

  • First, updating some links on new reviews of MCED.  
  • Then, we look at a new paper by Goriatis, Buchanan, et al in Nature Medicine on valuation of genomics in healthcare.

###

Reviews of MCED come out regularly in major journals; here is the latest one.  

See the latest in Annals of Internal Medicine, Kahwati et al. (November issue; ahead of print 9/16/25).   Sponsored by AHRQ, it comes with an op ed by Weinberg.  See the May 2025 AHRQ output, by Kahwati, at 139pp - here.

I think most of us are used to seeing "MCED" - Multi-cancer early detection.  These articles are headlining with "MCDT" - Multi-cancer detection tests.

####

I'd put those articles in context of a major new paper by a health economics team on "determining the value of genomics in healthcare."  See the home page here:

https://healtheconomicsandgenomics.com/

And see Goranitis et al. in Nature Medicine, dateline November 27:

https://www.nature.com/articles/s41591-025-04061-3

Below, find Chat GPT 5 on Goranitis and on Buchanan, Goranitis.

Tuesday, November 25, 2025

CMS Issues "Request for Information" - Strategic Directions for Medicare Advantage

 CMS has issued its CY2027 proposed rule for Medicare Advantage.  It includes a "request for information" about future strategic directions for the program.

###

CMS issues four major Medicare rules each year.  In the spring, we have the Inpatient Rule, which finalizes in August, ahead of the October fiscal year.  In the summer, we have the Physician and the Hospital Outpatient rules, which publish November 1, ahead of the new calendar year.

And around November, we get the Medicare Advantage proposals, which finalize in the spring, and of the next MA contract year.

Find the MA press release here:
https://www.cms.gov/newsroom/press-releases/cms-proposes-new-policies-strengthen-quality-access-competition-medicare-advantage-part-d

Find the fact sheet here:
https://www.cms.gov/newsroom/fact-sheets/contract-year-2027-medicare-advantage-part-d-proposed-rule

Find the actual proposed rule here (paginated publication on 11/28):
https://www.federalregister.gov/public-inspection/2025-21456/medicare-program-contract-year-2027-policy-and-technical-changes-to-the-medicare-advantage-program

###

The word "coverage" occurs 726 times, but I don't see the words LCD or NCD this year. Prior Authorization 17 times, denial 3 times.  Artificial intelligence, twice.

The request for information on "Future Directions in Medicare Advantage" starts on inspection copy page 6-11.  

Comment to January 26, 2026.

Big News: FDA to Down-Classify Many Companion Diagnostics as Class II (510k)

Last year, when FDA was sparring with stakeholders and courts over its LDT regulations, FDA promised to downclassify many types of diagnostics from Class III to Class II.   They went radio-silent from April to November, but now, the regulation is in print.

This is big news because it changes the landscape of how hard it is to get an FDA label as a companion diagnostic.  It also means that new ranges of tests will qualify for Medicare benefits.  NCD 90.2, for NGS testing in cancer, automatically covers NGS tests that are "cleared or approved" as CDx.   And sole-source tests (run from one lab) are eligible for ADLT pricing rules if they are "cleared or approved."   Now the range of "cleared" tests will be larger.

See an early essay at Linked In by Karin Hughes PhD here.  A 5-page PDF from AgencyIQ here. By Lawrence Worden here.  At Genomeweb here.  Kahles et al. review EU and US IVD regulations - prior to this FDA change - here.

See the Fed Reg regulation proposal here.  Comment in 60 days until January 26, 2026.

The rule runs 14 pages and covers many considerations and details.  The regulation for 510K aka Class II CDx will be at 21 CFR 866.6075, as “Nucleic Acid-Based Test Systems for Use with a Corresponding Approved Oncology Therapeutic Product.”  Within the 14-page publication, the actual regulation at 21 CFR will be about 680 words long (two full columns of the Federal Register).


###

AI CORNER

###

FDA Down-Classifies 
Key Oncology Companion Diagnostics:
A Policy-Level Summary

In a significant regulatory shift, FDA has proposed reclassifying a cluster of oncology companion diagnostics (CDx) and CDx-adjacent molecular tests—from Class III (PMA) to Class II with special controls. The 14-page notice marks FDA’s first broad structural change to CDx oversight in more than a decade and reflects the agency’s conclusion that these technologies are now mature, well-characterized, and manageable within the 510(k) framework.

Rationale for Reclassification

FDA’s justification rests on two main pillars: