How AI is making sense of $4 trillion in medical expenses

Health systems, hospitals and insurance providers are actively seeking artificial intelligence tools to gain a competitive advantage in billing and processing their share of the $4 trillion spent annually on medical expenses by Americans, Politico reported Dec. 31.

From numerous interviews Politico conducted with more than 20 leaders in health, technology and policy, as well as discussions at the recent Healthcare Information and Management Systems Society conference on AI in San Diego, it has become evident that the impact of AI on the healthcare industry's financial performance is a primary concern. 

The consensus among experts is that even AI solutions that enhance patient care and improve administrative systems must have a viable financial model. Several health systems informed the news outlet that their focus is on achieving cost savings through more precise coding of bills, thereby reducing their financial liability.

Meanwhile, insurers are emphasizing significant investments in AI, aiming to reduce their internal administrative expenses and detect fraudulent activities in the invoices they encounter. 

"It feels like the perfect storm is approaching, where technology becomes a substantially valuable asset to the company when deployed effectively," Craig Richardville, CIO of Salt Lake City-based Intermountain Health told Politico

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