Artificial Intelligence holds Promise to Mitigate Healthcare Revenue Cycle Waste

Following patient care, artificial intelligence is now seeking opportunities for improvements of administrative processes in the healthcare sector. With maturation of the technology and its increasing viability, revenue cycle management is one area wherein artificial intelligence is evident.

Meanwhile, several current revenue cycle processes result in lot of friction and waste. According to an industry data cited at a HIMSS20 digital presentation, inefficient revenue cycle practices in the healthcare system can result in administrative waste amounting to as much as US$200 billion. The waste generated in the system between providers and payers is due to lot of inefficiency, lack of transparency, inaccurate documentation and coding, and lack of awareness regarding certain steps on both sides.

According to statistics provided by technology enterprise Optum360, hiring data illustrates administrative spending has increased. While hiring for physicians has increased since 1970, but administrative hires have increased by 3,000% since then.

AI to translate into Positive ROI for Administrative Applications, says industry statistics

Owing to this, the sentiment of healthcare professionals towards the technology to mitigate waste is positive. According to data provided by Optum, 97% of healthcare personnel trust AI to handle clinical or administrative applications, whereas 85% are currently developing or implementing some kind of AI strategy. About 55% healthcare personnel, which is more than half, expect to achieve positive ROI in less than three years.

Organizations on an average are investing US$39.7 million on implementation of AI over the next five years. At present, almost one-third of health plans, employers, and providers are automating processes such as customer service or administrative tasks, and almost 56% of health plans are using technology to combat waste, fraud, and abuse. Furthermore, the technology finds use y thirty-nine of providers to personalize care recommendations.

Author: Rohit Bhisey

As Head of Marketing at TMR Research, Rohit brings to the table over a decade of experience in market research and Internet marketing. His dedication, perseverance, and passion for perfection have enabled him to achieve immense success in his field. Rohit is an expert at formulating new business plans and strategies to help boost web traffic. His interests lie in writing news articles on technology,healthcare and business.

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