AI & Machine Learning Products Can Solve The Healthcare Waste Crisis
Over the next 5 years, AI software and machine learning products will become fixtures of all major industries. From FinTech to education, these products reduce costs, increase efficiency, and reimagine capabilities. Together, these technologies are bringing automation out of the stone age, and into truly intelligent, reliable solutions.
With longstanding inefficiencies and wasteful spending, the healthcare industry is especially in need of the benefits of artificial intelligence and machine learning software.
The State of Healthcare
Wasted spending in healthcare has hit a crisis point. Each year, the healthcare industry spends $6.5 trillion, with an exorbitant amount of waste. In the USA alone, an estimated $760 - 935 billion is wasted, accounting for about 25% of all healthcare spending.
All this waste results in a higher cost and lower quality of healthcare, while simultaneously making it harder to keep the industry afloat. A solution is desperately needed to improve the state of affairs.
How AI & Machine Learning Can Transform Healthcare
The technology required to solve, or at least reduce, wasted spending already exists. It has not, however, been adequately leveraged or adapted in the healthcare industry yet. As a result, there remain many opportunities for new products to be developed.
Over the next few years, smart AI and machine learning solutions could be worth billions. Tracita forecasts predict the global AI market to be worth $126 billion by 2025 (compared to just $10.1 billion in 2018). This rapid rise in AI for healthcare will transform the industry.
Healthcare automation will streamline processes reducing billions in waste, as well as providing a level of efficiency that will save lives and improve treatment.
Some of the most discussed new digital products for healthcare include digital consultations, AI-enabled robotic surgery, and secure data recording, sorting, and sharing. While these offer great potential benefits, the biggest game-changers for AI in healthcare reduce waste by focusing on efficiency, accuracy, and consistency.
Biggest Areas of Opportunity for Machine Learning in Healthcare
Administrative Complexity: Complex administrative procedures and systems are not only slow but put a significant financial strain on the industry. Estimates put the wasted spending of administrative complexity at $265 billion per year in the US.
Pricing Failure: Inconsistent or improper pricing costs as much as $237-240.5 billion each year in the US.
Failure of Care: Collectively, failure of care can make up nearly ¼ of wasted spending in the US, with estimates adding up to $165.7 billion. Failure of care coordination is estimated at $27.2 to $78.2 billion.
Overtreatment or Low-Value Care: Improper quality of care is estimated to cost $75.7 to $101.2 billion per year.
Fraud & Abuse: Current systems are vulnerable to fraud and abuse. Leveraging AI & machine learning systems could reduce these risks, saving the healthcare industry up to $83.9 billion per year.
Healthcare Development Solutions
Disruptive healthcare products and services require a disruptive digital partner. Torinit is a strategic tech partner for healthcare providers, services, and products. Our advanced expertise, strategies, and tools provide healthcare development solutions so you can thrive and grow in this evolving industry.
Contact us today and discover how Torinit can transform your products & services.