Healthcare is on the brink of a new era of digital transformation. Already, the industry has seen significant advancements in technology, fueled by the rise in telehealth and the growing demand for “always-on” patient service. And AI solutions promise a new wave of innovation.
Even if you’re not using AI yet, it’s likely you — or your competitors — may be soon. Elsevier Health’s Clinician of the Future 2023 report notes that nearly half of clinicians said they’d be using AI-powered tools to support clinical decision-making in two to three years’ time, for example, up from 11% in 2023.[1] Overall, AI in healthcare is expected to have a compound annual growth rate of over 40.2% between 2022 and 2029.[2]
But as more and more AI healthcare solutions come to market, it's critical to truly reflect on your needs and ensure you're investing in technologies likely to offer the biggest return on investment (ROI) for your business. Here, we’ll discuss some of the ways AI solutions can help providers tackle the key problems healthcare organizations face today, and share strategies to help you develop your financial plan if you plan to invest in AI solutions.
AI in healthcare: What are the possibilities?
Healthcare organizations face significant challenges, but there are several potential opportunities for AI to help.
Streamline back-office tasks
Relying on manual processes for back-end tasks continues to pose a challenge for healthcare organizations. Not only do tedious, manual tasks add to staff and clinician burnout, they’re also inefficient and error-prone, which impacts an organization’s bottom line.
When Experian Health surveyed over 200 healthcare employees, a staggering 96% said that staffing shortages impacted patient collections, patient reimbursements, or both.[3] And 70% said that the worsening staff shortage led to an increase in claims denials.[4]
However, leveraging AI to automate tedious tasks may ease the burden on staff and help reduce the time and effort required to collect payment. AI-powered solutions can assist in medical coding, automate claims processing and remind patients of outstanding balances, as well as provide personalized instructions on how to make payments.
Support cross-team, whole-patient care
The shift to value-based care — including for Medicare[5] — creates strong financial incentive for providers to enhance patient outcomes. However, it also brings fresh challenges, as providers must use patient data to identify at-risk patients and coordinate preventive healthcare — often involving multiple care teams.
Laying the foundation for financial success going forward will require finding ways to maximize outcomes for patients to, in turn, maximize reimbursement. This could include investing in AI solutions to enable collaborative care across teams, leveraging AI to identify at-risk patients for proactive outreach and preventive care, and using AI solutions to support clinical decision-making.
Personalize patient outreach and support
As the demand for tailored, “always-on” service continues to increase, delivering a personalized patient experience should be top of mind for healthcare organizations. Doing this well is critical to retention, especially for younger patients.
Millennials and Gen Z patients — those born between 1981 to 1996, and 1997 to 2012, respectively —are six times likelier than older patients to switch providers.[6] And, of patients of all ages who went with a different provider, nearly four in five cited ease of navigation as their top reason.[6]
Leveraging AI may help providers streamline nearly every step of a patients’ journey. AI-assisted self-service tools can allow patients to book and reschedule appointments anytime, from anywhere, reducing friction that could negatively impact patient acquisition and retention. AI tools can also help providers send personalized communications across patients’ preferred channels — emails, text messages and more — as well as send appointment reminders that reduce the risk of lost revenue due to no-shows.
How healthcare business can create a plan to invest strategically in AI
Three strategies to develop your financial strategy:
1. Identify your highest-priority pain points
While the potential for AI in healthcare may be limitless, your tech budget may not be. As a result, you should start finding the right solutions by identifying your most pressing pain points — and where AI has the greatest potential to help.
If you’re struggling with the cost to continually attract new patients, for example, you might seek out AI solutions that will help you boost retention and increase the lifetime value of each patient — such as an AI-powered patient communication solution that will help you deliver a personalized patient experience and proactively reach out to patients.
If your practice is overloaded with demand, on the other hand, you might opt to invest in a solution to automate back-end tasks to boost efficiencies and allow you to take on more patients.
As you assess these pain points, keep potential ROI top of mind. Use the exercise to gain insight into how much each pain point is costing you, how to measure improvement, and the value an AI solution brings to your business in the short-, medium- and long-term.
2. Have a plan for your people
Boosting ROI from an investment in AI requires having a team who can leverage the technology effectively — and you should consider including training and education initiatives in your strategy.
In some cases, you may simply need to train your staff to use a new AI-powered technology. However, one of the most significant benefits of automation is freeing up time for your staff to take on more valuable strategic work. However, doing that effectively require additional training.
As you create your financial plan, reflect on how deploying AI technology may impact your team’s day-to-day tasks and the skill they’ll need to excel at work. Identify any gaps in your team’s skill sets, and consider building upskilling or recruitment initiatives to ensure you have the skills you need to reach your goals.
Consider the upfront costs — for example, of training or hiring new talent — and the long-term value that will bring to the organization, to gain deeper insight into ROI.
3. Create your financial plan
Once you’ve estimated your upfront costs and forecasted ROI from investing in AI, you’re ready to start mapping out your next steps. Consider how much capital you have on hand to invest, and where you may need additional financing — such as a business loan or line of credit — to achieve your goals.
Consider, too, how investing in AI may impact your business’ financial health, and scenario-plan for the future. What will your cash flow look like if you invest in AI? Will you still have enough cash on hand to weather uncertainty until you start realizing positive ROI?
These financial forecasts can help you weigh the benefits and considerations of leveraging AI so you can identify the best path forward.
Get support as you plan a strategic investment in AI
Investing in new technologies can help you achieve your business goals, but it also comes with financial risk. A trusted partner can help you weigh the pros and cons and make a decision that will work for you in the short- and long-term.
PNC’s Healthcare Business Banking team is here to help with trusted insights, support for creating financial forecasts and plans, and solutions designed specifically for healthcare organizations.
To learn more, visit us online.
