Study: AI Could Save 5-10% in Healthcare Spending
|
By HospiMedica International staff writers Posted on 30 Jan 2023 |
|
A new study by McKinsey & Company (New York City, NY, USA) and Harvard University (Cambridge, MA, USA) estimates that the broader adoption of AI could lead to savings in the range of 5% to 10% in healthcare spending, or between approximately USD 200-360 billion per year in the US.
Presently, the healthcare sector has low adoption of AI-based tools despite its benefits discovered by researchers. The study's estimates are based on AI uses utilizing current technologies that are achievable within the next five years, without compromising quality or access. 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.
Health insurers could experience savings from uses that improve claims management, such as automating prior authorization, along with healthcare and provider relationship management, including preventing readmissions and provider directory management. Based on AI-driven uses, private payers could save approximately 7% to 9% of their total costs within the next five years. Physician groups could save 3% to 8% of their costs. Additionally, the report estimates that hospitals could register savings between 4% to 11% in their expenses per year.
Related Links:
McKinsey & Company
Harvard University
Latest Business News
- Johnson & Johnson Launches AI-Driven Cardiac Mapping System
- Proximie Advances AI-Driven Intelligent Operating Rooms with NVIDIA Collaboration
- GE HealthCare, DeepHealth Expand AI Breast Imaging Collaboration
- Sinocare Presents AI-Driven Integrated Digital Health Solutions at CMEF
- GE HealthCare and Medtronic Expand Alliance with Intraoperative Imaging Integration
- New Partnership Advances Physical AI into Perioperative Workflows
- External Liver Assist System Receives FDA RMAT Designation
- New Partnership Expands Access to Predictive Tool for Patient Monitoring
- GE HealthCare Leads Major European Initiative to Advance Cardio-Oncology Care
- Medtronic and GE HealthCare Broaden Alliance Across Monitoring and Care Solutions
- Quantum Surgical Acquires NeuWave from Johnson & Johnson
- Medtronic to Acquire Coronary Artery Medtech Company CathWorks
- Medtronic and Mindray Expand Strategic Partnership to Ambulatory Surgery Centers in the U.S.
- FDA Clearance Expands Robotic Options for Minimally Invasive Heart Surgery
- WHX in Dubai (formerly Arab Health) to debut specialised Biotech & Life Sciences Zone as sector growth accelerates globally
- WHX in Dubai (formerly Arab Health) to bring together key UAE government entities during the groundbreaking 2026 edition
Channels
Artificial Intelligence
view channel
AI Model Uses Eye Imaging to Identify Risk of Major Systemic Diseases
Early detection of systemic disease risk remains a persistent challenge in population health screening. Cardiometabolic conditions such as diabetes, heart disease, and stroke often progress without symptoms... Read more
AI Platform Interprets Real-Time Wearable Data for Parkinson’s Management
Parkinson’s disease presents fluctuating motor and non-motor symptoms that complicate day-to-day self-management and clinical decision-making. Care teams require timely, longitudinal insight into medication... Read more
Critical Care
view channel
Blood-Filtering Device May Prolong Pregnancy in Severe Early Preeclampsia
Preeclampsia is a hypertensive disorder of pregnancy that can progress rapidly and threaten the lives of both mother and fetus. In its severe early form, often before 34 weeks’ gestation, clinicians frequently... Read more
AI Tool Predicts In-Hospital Cardiac Arrest Minutes in Advance
Sudden cardiac arrest, the abrupt loss of heart function, often arises without clear warning in hospitalized patients. Clinicians must sift through faint signals from routine monitoring while limiting... Read more
Surgical Techniques
view channel
Noninvasive Cardiac Radiotherapy Reduces Ventricular Tachycardia Events
Life-threatening ventricular tachycardia is a rapid heart rhythm originating in the ventricles that can trigger sudden cardiac death. Patients who continue to have ventricular tachycardia despite guideline-based... Read more
Augmented Reality System for Knee Replacement Receives FDA Clearance
Total knee arthroplasty requires precise implant alignment while maintaining efficient, reproducible workflows. Many operating rooms, particularly ambulatory surgical centers, need guidance technologies... Read more
Patient Care
view channel
Wearable Sleep Data Predict Adherence to Pulmonary Rehabilitation
Chronic obstructive pulmonary disease (COPD) is a long-term lung disorder that makes breathing difficult and often disturbs sleep, reducing energy for daily activities. Limited engagement in pulmonary... Read more
Revolutionary Automatic IV-Line Flushing Device to Enhance Infusion Care
More than 80% of in-hospital patients receive intravenous (IV) therapy. Every dose of IV medicine delivered in a small volume (<250 mL) infusion bag should be followed by subsequent flushing to ensure... Read more
Health IT
view channel
AI System Detects and Quantifies Chronic Subdural Hematoma
Viz.ai (San Francisco, CA, USA) announced a strategic commercialization collaboration with Johnson & Johnson (New Brunswick, NJ, USA) to expand access in the United States to the Viz Subdural solution... Read more
Continuous Monitoring Platform Detects Infection Risk Across Care Transitions
Patients leaving skilled nursing facilities often lose continuous physiologic monitoring, increasing the risk of undetected infection and delayed intervention. Nursing home residents are seven times more... Read more
