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Cancer center officials said that they acted properly in approving the deal with Paige. AI and that if successful, the venture could change the future of cancer diagnosis. Officials said that some board members invested only after early efforts to generate interest from outside companies and investors had failed.

But they acknowledged that they did not seek an independent valuation of the tissue archive, nor did they put the proposal out for competitive bidding before licensing it to a single company.

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In exchange for sharing its voluminous database, Memorial Sloan Kettering received ownership shares amounting to about nine percent in the company. Owens, a Washington lawyer who ran the Internal Revenue Service division that oversees tax-exempt organizations. After ProPublica and The Times began asking questions about the arrangement, one of the founders — Dr. David Klimstra, the chairman of the pathology department — said he would divest his ownership stake. Klimstra and another co-founder, Dr. Thomas Fuchs, the head of the computational pathology laboratory, pursued the idea for Paige.

AI in , hospital officials said. Fuchs had previously worked for NASA developing algorithms that would teach the Mars rovers to navigate terrain, and has said some of the same algorithms can differentiate cancerous tumors from benign ones. Universities and teaching hospitals have long sought to turn their scientific discoveries into lucrative business deals.

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But the Paige. AI is among a growing number of companies, including Google and Microsoft , that are exploring ways to use artificial intelligence to improve health care. Pathology has been a focus because it remains a time-consuming, error-prone and often subjective process, where doctors examine tissue slides to decide whether cancer is present, and which type. The Paige. He is listed as a founder and executive chairman of Paige.

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AI and holds an equity stake. Jim Breyer, the early Facebook investor and venture capitalist, also agreed to invest. The three other hospital board members who became investors are Stanley Druckenmiller, Alexander T. The board investors in Paige.

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AI, and Mr. Breyer, either declined to comment or did not return calls and emails. Selby has pledged to donate some of his profits to the hospital, Mr. Beattie said.

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  6. Experts in nonprofit law and corporate governance questioned whether Memorial Sloan Kettering, which is a charity, acted properly in what is known as a related party transaction with the founders of Paige. If nonprofits are found not to have complied, they or the individuals involved could face tax repercussions. Beattie said the hospital relied on some investors to set a value for licensing the slides, with guidance from hedge fund leaders on its board.

    A law firm, which he did not identify, evaluated the documents and said it was a good deal. Beattie said the cancer center would follow I. He also said the hospital had set up plans to manage conflicts for the three company founders. All four members who are invested, including Mr.


    Selby, must recuse themselves from any board actions about the company, Mr. AI, some of them angered by the deal that would allow others to profit from their work. At a tense meeting Sept. As for how the deal came about, Dr.

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    Klimstra told colleagues that Google had twice approached the hospital about securing access to the pathology slides and was turned down. Dentistry that is fits your budget and convenience is what Paradise Ridge Dentistry is all about. This means you never have to miss work or school to come in and see us. We are proud to say we are the best Phoenix dentist office because we really do care about our patients.

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