Hospitals Face AI Build vs. Buy Choice

Hospitals are increasingly confronted with a significant decision regarding artificial intelligence: whether to build AI tools in-house or purchase them from vendors. This comes as vendor pitches for AI solutions often run into the hundreds of thousands of dollars, prompting executives to question their own development capabilities. Dr. Ashley Beecy noted the complexity, stating, 'Easy to build, but hard to sustain.' This concern echoes challenges faced during electronic health record (EHR) implementations.

Experts like Michael Meucci, CEO of Arcadia, advise health systems to consider strategic partnerships with established technology companies. He stressed that significant investment in organizational change management is crucial for successful AI adoption, recalling that more was spent on change management for EHRs than on the technology itself between 2009 and 2013. This parallels the current AI wave, demanding similar foresight.

Arcadia's recent launch of Ascent, an AI-enabled platform, aims to help health systems translate data into performance improvements. The platform leverages acquired data and expanded capabilities to provide actionable insights. Meucci emphasized that while AI offers immense potential, foundational data quality and infrastructure are paramount. He warned against implementing AI on flawed data, likening it to 'garbage in, garbage out.'

Meucci also highlighted that initial AI deployments can be inflationary, similar to EHRs, particularly in revenue cycle management. However, he remains optimistic about AI's long-term ability to reduce administrative burdens and improve efficiency. He pointed to the potential for AI agents to handle tasks like prior authorizations, freeing up nurses and addressing workforce shortages.