Healthcare providers need a solutions-based strategy to AI implementation

Still, questions remain about how to scale AI growth and how to fund the investment. Choosing the AI tools to pilot, developing a budget to support an AI adoption, scaling the program and understanding the impact on the clinic environment are all daunting questions. AI promises to remove or improve the administrative burden in a clinic environment, but AI implementation can itself be an administrative challenge. However, through strategic adoption and planning, healthcare providers can successfully implement AI and unlock substantial value.

AI as a practical solution

AI has the potential to provide a lot of value to a healthcare system. Through automation and data processing, it can help attract and retain talent, reduce employee burnout, and improve the patient experience. But AI isn’t a single, overarching software program. Rather, there are a network of AI-powered tools that have everyday applications.

Already, a handful of tools are becoming standardized in the healthcare industry. In the clinic environment, healthcare providers are investing in AI-powered scribe tools to take notes during a patient visit that are input into the electronic medical record. This dramatically improves patient engagement, because the doctor can be present during the visit rather than taking notes themselves. A report¹ from Peterson Health Technology Institute found that scribe tools significantly reduced clinic burnout and cognitive load by 40% to 63% in reporting healthcare systems. Diagnostics imaging is another common area of AI adoption. AI can process radiology imaging and identify abnormalities to drive early detection and treatment.

To choose the right tool and create the right network of AI systems to gain the full power of automation, healthcare providers need to identify a specific problem in current processes and the desired outcome. Then, the provider can choose the right AI solution for the clinic, the best implementation approach, like a pilot program, and a plan to scale the program and seamlessly transition from the traditional process.

An opportunity to improve financial performance

Cumulatively, the efficiencies gained through the right AI tools can provide a significant savings to the provider’s bottom line. In back-office management, the numbers can be staggering. AI has been shown to dramatically improve the claims process, for example, reducing denials and delays. According to a report² from KLAS, claims, adjudications and appeals cost healthcare systems $20 billion annually. Ultimately, more than half of denials are overturned, which the report notes “equates to unnecessary and unsustainable administrative waste for both payer and provider organizations.” Applying AI to the claims process could improve claims accuracy by 3% to 5%, according to a report³ by McKinsey, reducing healthcare systems’ costs considerably. One insurer saved $82 million annually by integrating AI into the claims process.

The claims department is only one vertical to see significant improvement. The same report from McKinsey found that AI can improve sales conversion rates by 10% to 20%, drive premium growth by 10% to 15%, and reduce new patient onboarding costs by 20% to 40%. AI can drive significant cost savings throughout the value chain of an organization, but providers need to know their business and apply AI appropriately to real problems to gain a meaningful solution.

Managing the risk of AI adoption

AI tools have the power to produce significant gains, but healthcare providers also need to manage the increased risks of AI adoption. Security is a primary concern. Healthcare providers need to secure patient data and information, meet medical ethics expectations and comply with regulations. Healthcare providers need to work with reputable technology companies to maintain a secure network with firewalls that protect patient information and ensure compliance.

The cost of implementation and strategy to scale with minimal disruption are also primary concerns for healthcare providers. Financial and banking advisors will play an important role here in navigating healthcare clients through a significant tech investment and creating a financial plan to support the longevity of the program. It may come as a surprise, but a call to the bank is among the first calls a healthcare provider should make when pursuing an AI initiative.

Healthcare providers will have the option to lease the technology—a great short-term solution for a pilot program—or finance the entire technology outright. This is an important conversation to understand the organization’s ability to leverage AI. 

AI adoption is ramping up quickly. According to a survey⁴ conducted last year by McKinsey, 89% of healthcare organizations have either already implemented or are in the process of implementing AI. Healthcare providers are motivated to pursue AI tools, but questions remain about the risks and costs of implementation. Taking a strategic problem-solution approach to AI adoption and working closely with financial relationships to understand the cost breakdown is imperative to a successful AI launch.

For more information, contact an expert:

Tom Hughes, Senior Relationship Manager, Commercial Healthcare, KeyBank
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