A report by Harvard University researchers has found that large-scale adoption of AI could save the American healthcare system nearly $400 billion annually.
The improvements that AI implementation in hospitals and other medical facilities can accomplish for patient care are becoming fairly well known. A little less obvious is the impact that AI can have on skyrocketing health costs.
Joint researchers with McKinsey & Company and Harvard University have found that widespread adoption of artificial intelligence in healthcare could save the US up to $360 billion annually.
For various reasons, the healthcare industry has a relatively low adoption of AI-based tools despite the benefits discovered by researchers and early adopters. In the new paper, researchers estimate that the broader adoption of AI in the healthcare industry could lead to savings in the range of 5% to 10% in healthcare spending, or between approximately $200 billion and $360 billion per year. Their estimates are based on AI use cases utilizing current technologies that are achievable within the next five years, without compromising quality or access.
The researchers say that hospitals could see cost savings mainly through improved clinical operations, quality, and safety – such as optimizing operating rooms or identifying adverse events. Physician groups can experience similar benefits by leveraging AI for continuity of care, such as referral management.
Similar savings could be experienced by health insurers as AI solutions can streamline their operations and work to reduce waste and fraud. The researchers concluded that insurance providers could experience savings from AI solutions that improve claims management, such as automating prior authorization, along with those that can enhance healthcare and provider relationship management, including preventing readmissions and provider directory management.
Based on AI-driven use cases, the researchers claim that private payers could save approximately 7% to 9% of their total costs, or between $80 billion and $110 billion annually, all within the next five years. Physician groups could save 3% to 8% of their costs, translating into savings of between $20 billion and $60 billion.
How BigRio Helps Facilitate Advancement in Healthcare AI
At BigRio, we understand how AI is changing the very nature of healthcare delivery in America, which is why our premier mission is to partner with startups to develop healthcare initiatives with AI at the core of their solutions.
In fact, we have launched an AI Studio specifically for US-based Healthcare startups with AI centricity. Our mission is to help AI startups scale and gear up to stay one step ahead of the pack and emerge as winners in their respective domains.
AI Startups face numerous challenges when it comes to demonstrating their value proposition, particularly when it comes to advanced AI solutions for pharma and healthcare. We have taken an award-winning and unique approach to incubating and facilitating startups that allow the R&D team and stakeholders to efficiently collaborate and craft the process to best suit actual ongoing needs, which leads to a faster, more accurate output.
• Access to a top-level talent pool, including business executives, developers, data scientists, and data engineers.
• Assistance in the development and testing of the MVP, Prototypes, and POCs.
• Professional services for implementation and support of Pilot projects
• Sales and Marketing support and potential client introductions.
• Access to private capital sources.
BigRio excels in overcoming such initial hurdles, which present nearly insurmountable obstacles to a startup operation.
Rohit Mahajan is a Managing Partner with BigRio. He has a particular expertise in the development and design of innovative solutions for clients in Healthcare, Financial Services, Retail, Automotive, Manufacturing, and other industry segments.
BigRio is a technology consulting firm empowering data to drive innovation and advanced AI. We specialize in cutting-edge Big Data, Machine Learning, and Custom Software strategy, analysis, architecture, and implementation solutions. If you would like to benefit from our expertise in these areas or if you have further questions on the content of this article, please do not hesitate to contact us.