Healthcare AI: How Will It Affect Care Providers?

Healthcare AI: How Will It Affect Care Providers?

In previous blogs, we discussed the expensive and broken nature of the U.S. healthcare system. Now, let’s explore the potential opportunities AI offers in healthcare, particularly regarding employment.

The Impact on Healthcare Jobs

Recently, a close friend shared a concerning story: her best friend, a nurse, was laid off due to “AI.” I was taken aback by the speed of such changes. Her friend worked as a case manager, but I didn’t delve further into the details. What’s crucial is that this could become a reality for many in healthcare.

This incident may be just the beginning. Just last week, Becker’s Hospital Review reported that nurses at 17 hospitals operated by HCA Healthcare ratified new contracts that included protections against AI. The National Nurses United (NNU) union emphasized that the new contract language ensures nurses have a voice in implementing technologies like AI to enhance patient care rather than diminish it.

HCA Healthcare responded by stating, “We work closely with our doctors and nurses to identify and develop technologies that improve workflows, reduce administrative burdens, and allow caregivers to spend more time with patients.”

The healthcare sector is already grappling with a severe shortage of workers, especially nurses and physicians. This trend began before COVID-19 and has only intensified since then. States like New Jersey, New York, Massachusetts, Tennessee, and Georgia are experiencing critical shortages, while states like Pennsylvania, California, Texas, Minnesota, and Washington have surpluses. During my time in physician recruitment, we often turned to Pennsylvania as a prime talent source.

According to multiple reports, public health departments expanded their workforce by 19% from 2019 to 2022, but some of those positions may now be at risk as funding decreases. AI could accelerate this shift, leading to both opportunities and challenges in staffing.

AI’s Growing Presence in Healthcare

Technological transformations often start slowly before reaching a tipping point. We’ve seen this with typewriters, computers, the internet, and smartphones. AI is advancing even faster and promises to have a significant impact, particularly in extending and improving lives.

The key question is: how quickly will we adapt to AI in healthcare, or will we resist it? Daily headlines highlight new AI models and innovations that even surprise experts with the level of investment and advancement. We may soon refer to a “pre-AI era” much like the “pre-internet age.”

A report by McKinsey & Company notes that, from a survey conducted in early 2024, 65% of organizations are “incorporating AI into their business processes.” Yet many remain hesitant, and for valid reasons. There’s a steep learning curve, and AI is not yet flawless; it currently boasts about an 80% accuracy rate in general medical diagnoses. While this is impressive, it may not provide the comfort level patients or caregivers expect.

However, an 80% accuracy rate can be valuable when used to inform and educate consumers, facilitating discussions with their doctors. We’re already seeing a divide between those who embrace AI and those who do not. Will we see an “AI-native” generation similar to those who grew up with the internet? My son, for example, received his first computer in middle school and navigated the transition to smartphones with ease—today’s students will likely become AI natives.

Some experts argue we are currently in an “AI hysteresis,” a term describing the lag in response to external changes. Think of it as water on the verge of boiling, just below the boiling point. As a science fiction fan, I prefer the term “event horizon,” referring to the point of no return at a black hole’s boundary. I believe we have crossed that event horizon for AI, and transformation is happening rapidly. The “lag” is diminishing, and AI’s influence is accelerating.

Google AI’s Push Into Healthcare

Google is among the tech giants advancing AI in healthcare. Recently, Healthcare Dive reported that Google’s AI tool, Vertex AI, is now in use at two healthcare systems to quickly query patient records. Initially released in March with limited availability, Google has since expanded its Healthcare Data Engine, offering a comprehensive longitudinal view of patient data in an industry-standard format.

Google claims Vertex AI minimizes the risk of “hallucinations”—a term for when AI generates incorrect responses. This is significant, especially since clinicians and claims staff spend 27 and 36 hours per week, respectively, on administrative tasks like documentation. Google asserts that by providing source links or “grounding,” Vertex AI can enhance provider confidence in its responses.

However, AI in healthcare still faces limitations. While current AI models are about 80% accurate in diagnostics, they primarily serve as data aggregation tools rather than replacements for clinical judgment. AI tools like Vertex are promising but are not yet ready for widespread application in critical healthcare situations.

AI and Staffing: A New Paradigm

So, how will AI impact staffing? Currently, AI’s potential in healthcare primarily lies in handling repetitive administrative tasks, allowing professionals to focus more on patient care. For instance, nurses may be relieved of some documentation duties as AI streamlines workflows. The goal is to reduce burnout among healthcare workers, particularly nurses, who often face overwhelming non-clinical tasks.

However, there’s a darker side to this technological advancement. As AI tools become more proficient, certain roles—especially in administrative functions—may become obsolete. We’ve already witnessed some early AI-driven layoffs. The challenge will be ensuring that AI complements rather than replaces essential healthcare staff.

What’s Next for AI in Healthcare?

The future of AI in healthcare is still unfolding, presenting considerable potential. However, the focus must remain on how AI can empower consumers and improve patient care, rather than merely cutting costs or boosting efficiencies for hospitals and insurance companies. AI should aggregate various sources of a patient’s health data, provide personalized insights, and enable informed decision-making about care.

We believe the most immediate value AI can offer lies in managing chronic healthcare needs rather than acute situations. By consolidating medical records from multiple sources, AI can help patients and doctors identify trends, spot potential health risks, and take proactive measures.

At the same time, AI is likely to reduce the need for certain administrative roles while allowing healthcare professionals to spend more time with patients. Like all technological advances, there will be a period of adjustment. But if implemented thoughtfully, AI has the potential to make healthcare more efficient and ultimately more human-centered.

We believe the healthcare industry must strike a balance between embracing AI’s potential to enhance consumer education and improve healthcare delivery while simplifying the approximately 30% (or over $1 trillion annually) spent on healthcare administrative tasks.

-Noel J. Guillama, Chairman

About HealthScoreAI™Healthcare is at a tipping point, and HealthScoreAI is positioning to revolutionize the industry by giving consumers control over their health data and unlocking its immense value. U.S. healthcare annual spending has reached $4.7 trillion with little improvement in outcomes. Despite advances, technology has failed to reduce costs or improve care. Meanwhile, 3,000 exabytes of consumer health data remain trapped in fragmented USA systems, leaving consumers and doctors without a complete picture of care.

HealthScoreAI seeks to provide a unique solution, acting as a data surrogate for consumers and offering an unbiased holistic view of their health. By monetizing de-identified data, HealthScoreAI seeks to share revenue with consumers, potentially creating a new $100 billion market opportunity. With near-universal EHR adoption in the USA, and advances in technology, now is the perfect time to capitalize on the data available, practical use of AI and the empowering of consumers, in particular the 13,000 baby boomers turning 65 every single day and entering the Medicare system for the first time.  Our team, with deep healthcare and tech expertise, holds U.S. patents and a proven track record of scaling companies and leading them to IPO.