To tighten the gap between physician supply and demand, organizations are looking to generative AI technologies.
Key takeaways
Organizations should proceed with caution to ensure they understand the risk-reward trade-offs and how to navigate successful AI adoption.
Strong AI governance will lead to successful implementation.
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Generative AI in health care operations
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Many health care organizations are looking to generative artificial intelligence tools for their powerful potential to solve labor issues while enhancing the consumer-centered experience. Demand for health care services has outpaced the supply of labor, and health care cannot hire its way back to stability. Health care organizations are already embracing generative AI to deploy solutions like digital imaging, natural language processing, and disease modeling and prediction, and will seek additional options to provide optimal, consumer-centered care while improving razor-thin margins.
Rising demand for health care services
Demand for health care services has increased by 30% while labor has increased merely 1.65% when compared to 2019. Health expenditures are forecasted to reach $6.7 trillion by 2030, an increase of 49% from 2022’s $4.5 trillion.
The pandemic exacerbated labor issues, and by 2034, the demand for physicians is expected to outpace supply, according to the Association of American Medical Colleges. To tighten that gap, organizations have looked to generative AI technologies like ChatGPT to save physicians’ time and improve the patient experience. Organizations today are utilizing these technologies in various facets of care delivery. Examples include:
- Medical documentation: Generative AI techniques, such as natural language processing, can automate medical documentation by extracting relevant information from patient records, generating summaries, and assisting in coding and billing processes. This automation reduces administrative burden and offers providers the opportunity to focus more on direct patient care.
- Medical imaging analysis: Generative AI models are enhancing the analysis of medical images, reducing the time and effort required of radiologists and other health care professionals while improving workflows and productivity.
- Virtual assistants and chatbots: These tools can handle routine inquiries, schedule appointments and provide basic medical advice around the clock, increasing patients’ access to information. The technology has the capacity to factor in staff availability, skill sets and workloads to generate an optimal schedule that navigates appointment cancellations and unplanned hospital admissions.
By leveraging generative AI technologies, health care organizations can automate repetitive tasks, improve decision making, optimize workflows and enhance labor management. This not only reduces the burden on health care professionals but also improves overall patient care and operational efficiency in the health care space.
TAX TREND: Generative AI
For health care organizations considering whether to develop generative AI software themselves or license it from a third party, understanding the tax and accounting implications of each approach will help their overall cost-benefit analyses. A business that licenses software usually deducts each year’s license expense from its taxable income in that taxable year. Conversely, the tax treatment of software development expenses became less favorable in 2022 when a law change took effect.
Looking forward: With power comes responsibility
Each day, generative AI use cases build more momentum. However, organizations need to proceed with caution to ensure they understand the risk-reward trade-offs and how to navigate successful adoption. Organizations must ensure the technology complies with patient privacy standards and can defend against potential cyberattacks. To mitigate these risks, health care organizations should implement rigorous data governance practices, engage multidisciplinary teams to address ethical and interpretability concerns, maintain transparency, and ensure ongoing monitoring and evaluation of generative AI systems. Collaborating with regulatory bodies, legal experts and health care professionals can help in developing responsible and effective AI solutions.
TAX TREND: Workforce
Health care organizations may strengthen their recruitment and retainment efforts by centering compensation and benefit offerings around total rewards packages instead of just cash salary. Retirement programs, equity compensation, education opportunities or assistance, health savings accounts and subsidized transportation benefits are just a few of many common offerings with tax implications.
The takeaway
The health care industry is known to be a slow adopter of innovation and change. However, organizations that deny these innovations will see their market share decrease and their patient experience fall short. Collaboration between an organization’s board and leaders, along with strong AI governance, will lead to successful adoption and implementation.
CONSULTING INSIGHT: Generative AI
Generative AI is revolutionizing the development and delivery of products and services, and many organizations are working to understand how to use this technology. Learn how you can capitalize on the generative AI trend, increase value and mitigate risk.
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