Following Siemens Healthineers AG’s announcement that it was picking up Varian Medical Systems Inc. for $16.4 billion, another multibillion-dollar deal has emerged. This time, Teladoc Health Inc. and Livongo Health Inc. have inked a definitive merger agreement with a value of $18.5 billion. The transaction is expected to close by the end of the fourth quarter, subject to shareholder approvals and other customary closing conditions.

The Trump administration has issued an executive order designed to improve access to telehealth for Medicare beneficiaries in rural America, making permanent numerous changes that had been temporarily added for the COVID-19 pandemic. The news arrives as the Centers for Medicare and Medicaid Services (CMS) posted the draft Medicare physician fee schedule (MPFS) complete with expanded use of telehealth for a number of services.

The support for permanent changes to Medicare coverage of telehealth has risen drastically in the months since the COVID-19 pandemic began, but Krista Drobac of Sirona Strategies said on a July 23 webinar that stakeholders will have to help make the case that telehealth is cost effective. That cost effectiveness argument may be absolutely crucial if any of the related legislative proposals are to stand up to budget scoring in a time of skyrocketing U.S. budget deficits, she said.

Digital health bucked uncertainties around the COVID-19 pandemic, reeling in $6.3 billion in funding in the first half of 2020, according to a new report from Mercom Capital Group. The record-setting, global haul was 24% higher than last year’s first-half raise of $5.1 billion.

Novasight Ltd. has scooped up $8 million in a series A financing that’s intended to get the company through a pivotal study of its first U.S. indication, Curesight, as well as to advance other pipeline products. The Israeli startup is tackling a range of pediatric vision disorders using artificial intelligence and eye-tracking technology.

If there’s a readily visible upside to the COVID-19 pandemic, it may be that telehealth is not only much more accessible, it’s also supremely topical among policymakers. However, privacy concerns are still a significant source of drag in some respects, a consideration that extends to digital medicine as well in the context of contact tracing used to corral the SARS-CoV-2 virus.

Virtual care provider Doctor On Demand has scooped up $75 million in a series D round led by General Atlantic, with participation from existing investors. The funds are earmarked to fuel the company’s growth and expand access to comprehensive telehealth services across the U.S. Combined with earlier financings, the San Francisco-based company has raised nearly $240 million to date.

Conventional wisdom has it that recent expansions in coverage of telehealth will never be fully reversed. The addition of artificial intelligence (AI) into telehealth could solve several issues faced by doctors and hospitals. There is some concern, however, that the blending of AI and telehealth will industrialize the practice of medicine, dissuading patients from seeking critically needed care.

The Senate Health, Education, Labor and Pensions (HELP) Committee met again June 23 to discuss the federal government response to the COVID-19 pandemic, and one clear signal that emerged from the hearing is that Congress will have to provide annual funding to build a sustainable infrastructure for vaccine development and manufacture if the nation is to deal appropriately with the next pandemic.

The COVID-19 pandemic has fueled an unprecedented uptick in telehealth use, from medical and behavioral health services to remote patient monitoring, as federal and state regulators have relaxed certain policy restrictions to increase access to care. Sen. Lamar Alexander (R-Tenn.) recommended in a Senate hearing that certain temporary policy changes, such as elimination of the “originating site” rule and expansion of Medicare- and Medicaid-covered telehealth services, should be lasting to ensure patients retain health care access when the crisis is over.