“Absolutely!” Thorn protested. “If anything, we have been conservative in our appraisal. Please be assured that I’m not about to risk my reputation or the company’s for a short-term gain.”
“That’s comforting to hear,” Neumann said. What he didn’t say, though he was pretty sure of it, was that Thorn would likely risk everything to be regarded as a hero. The guy was both pretentious and insecure, and everyone knew the stories of him and his father. But family and personal failings aside, the hedge fund guru felt Thorn had stumbled upon something big, and he wanted a piece of it. He just needed to have a position to be able to watch the company’s progress and steer it away from trouble if need be. Health care in the United States was a notoriously politicized arena. That’s why he would eventually insist upon seats on both boards. But in these preliminary negotiations he would suggest that one would suffice. He’d demand both board seats when Thorn was about to lay hands on the cash. It was a ploy Neumann had used to great effect in the past.
“The beta test has been a fantastic success far exceeding our most optimistic predictions,” Thorn bragged. “As we said, the patients love it and it is going to truly solve the primary-care shortage worldwide. And lower costs. What more can you ask?” Thorn jabbed his finger at Neumann, “And iDoc is going to revolutionize addiction treatment. Whatever the addiction, iDoc will offer immediate, real-time feedback when a client-patient indulges—”
“Okay, okay, I get it,” Neumann interrupted. He didn’t need to hear a repeat of what had been said at the presentation.
“Well, I’ll get back to you about a board seat,” Thorn said. “It’ll have to be brought up with the current board.”
“Of course,” Neumann said, standing.
“Thanks for coming in.” Thorn stood as well and shook hands with Neumann, escorting him out of his office.
Neumann paused at the office door. “Say hello to your father for me. We used to play tennis on occasion on our Sun Valley trips. I hope he’s doing well.”
“I will. I will,” Thorn replied with a smile plastered on his face.
As Thorn waved his good-bye to Neumann he glimpsed Langley stretched out in a club chair in the anteroom, leafing through a magazine. Thorn shot a glance at his secretary.
She gave him a shrug, mouthing the words: “He just showed up.”
Irritated, Thorn beckoned Langley into his office. Thorn had a built-in distaste for creative types like Langley.
Thorn pointed to a chair and walked around behind his desk.
Once seated, Langley cleared his throat. “We’ve investigated this supposed glitch that I told you about yesterday. At first I thought it was a regression of the bug we’d seen during the first few weeks of the beta test. But it’s not. Nor is it actually a glitch in a literal sense, even though we can call it that. The application just made determinations from a different set of criteria and learning points than we would have suspected.”
Thorn was irritated. It seemed to him that Langley was deliberately trying to confuse him. “I’m not following you. What the hell do you mean by a ‘literal sense’?”
“The algorithm is weighting variables differently from how we thought it would. That’s the core of the problem, if it is a problem.”
Thorn threw up his hands, exasperated. “You know the key to running a large business like Amalgamated? You delegate. You hire good people and get out of their way. Now you want to drag me into the weeds? Have you considered the fact that if I am consumed with the details of your job, it might hinder my ability to act effectively for the company as a whole? My fund-raising is essential to securing future contracts for Amalgamated. Are you following me?”
“This is not a routine programming problem. And it is spreading.”
“What do you mean ‘spreading’?”
“Exactly what the word means. It started at Santa Monica University Hospital but now has appeared at Harbor University and even at the L.A. University Medical Center.”
“Shit!” Thorn exclaimed, running a hand nervously through his hair. “What kind of numbers are we talking about?”
“Not many yet. Besides the two cases at Santa Monica University Hospital, there have been two cases at Harbor University Hospital and two at L.A. University Medical Center.”
“Have these all occurred since we spoke yesterday?”
“Not the ones at Santa Monica, but the other four, yes.”
“And they all resulted in death?”
“Unfortunately, yes!”
“Are we going to see a surge in this problem or is this going to remain an isolated phenomenon?”
“I can’t say for certain; I can only guess.”
“Okay, guess!”
“I don’t think we will see a surge. But nor do I think the issue is going to go away. In fact I am sure it is not.”
“All right, you win. I need you to explain to me what is going on, but not in your usual tech-speak.”
Langley leaned forward. “These deaths are a direct outgrowth of the heuristic nature of the algorithm—”
Thorn put his hand up. “What do you mean by ‘heuristic’? You’ve bantered this term around without really explaining it to me.”
“As I said yesterday and have told you before, the application is capable of learning. We have all seen that iDoc learns. It progressively makes its own decisions, decisions that were not programmed into it per se, but that are based on past outcomes.”
“That means the iDoc algorithm is getting better because of its heuristic nature. Isn’t that what you are saying?”
“Exactly. It is learning and getting better faster than we predicted.”
“But still there have been these six deaths.”
“Correct. But remember the algorithm is not aware that it’s doing anything unwanted. In fact, it is doing what it thinks is best for everyone, the victims included.”
“So how many deaths do you think there will be?”
“As I said, there is not going to be an avalanche. Right now we are seeing an incidence of just over three hundredths of one percent. I don’t see it ever going over four hundredths. And as I said, the Independent Payment Advisory Board set up to control costs for Medicare and Medicaid is intrigued by what is happening and is looking more favorably on iDoc as a result.”
“How did they learn about this glitch?”
“As part of their due diligence in evaluating iDoc for Medicare and Medicaid beneficiaries, we allowed them access to our servers. They became aware of the deaths at the same time as we did. They are intrigued.”
“So they don’t want us to stop the glitch.”
“Their only concern, and a big one, is that it remain undiscoverable, for obvious reasons. If the media were to get hold of the story, it would be an unmitigated disaster.”
Thorn nodded that he couldn’t agree more. “Okay! All this is highly classified; no one gets wind of it. Make a few inquiries; see what ripples resulted from it so far. You said there were a couple of cases at University Medical. Clayton’s over there, have him sniff around to make sure no one is suspicious. Tell him I asked for his services specifically. But do not give him the details, just the basics. Again, how many are in the loop as of now?”
“At Amalgamated? The same as before: three. Me, you, and my IT head, Bob Franklin. And Franklin’s a team player, so no worries there.”
“Okay. Besides Clayton, no one else here at Amalgamated should know about this. No one! What about at IPAB?”
“I don’t know for sure. Two, maybe three folks. They’re a secretive bunch and don’t share much because they are not politicos, but rather power brokers who have been appointed without having had to go through congressional confirmation hearings. Their task is to reduce the deficit by reducing Medicare and Medicaid spending. It’s all about power. And power is knowledge that no one else has.”