- Olive rolled out a new AI-powered platform that streamlines revenue cycle management.
- And since health execs aren’t cutting back on financial digitization spending, we expect to see more hospitals invest in AI tools like Olive’s.
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After announcing a $106 million funding round last month, healthcare AI workforce startup Olive this week rolled out its new platform, Olive Helps, that speeds up lengthy revenue cycle management (RCM) processes for healthcare workers—tasks like prior authorizations and patient verifications.
The platform uses AI to understand an employee’s work through their interactions with applications and keystrokes to suggest relevant information—similar to how Google presents relevant search results first. For context, Olive’s other AI-enabled “digital employee” solution is currently being deployed by over 600 US hospitals to automate processes in departments like human resources, finance, and the supply chain.
AI-powered automation tools can substantially improve inefficiencies in US hospitals’ RCM processes, which generate a ton of administrative waste yearly. For one, incorrect documentation or coding can create extra back-and-forth communication between payers and providers about medical claims, contributing to the $200 billion in administrative waste the US healthcare system currently spends on RCM.
And hospitals strapped for resources—such as staff and budget—can’t always dedicate the same amount of time to every patient account to ensure there hasn’t been an oversight or inaccuracy. This is where AI tools come in handy: Hospitals can reduce employees’ workloads by outsourcing and automating repetitive, high-volume tasks to reduce errors in pre-authorization claims, for instance—and in turn, minimize the hefty costs associated with insurance claim denials.
Cash-strapped health systems are making budget cuts to cope amid the pandemic, but financial digitization spending is still considered need-to-have—and we expect more of these dollars to flow toward AI tools. For context, a recent Black Book survey cited by HIMSS revealed that only 12% of health system CFOs expect to minimize or defer spending on their financial systems’ digital transformation due to the pandemic—and 81% pegged these digital changes as need-to-have to keep their hospitals viable.
Further, a whopping 92% of healthcare leaders said it was important for automation tools to be built to specifically tackle RCM, per a mid-May to mid-June Alpha Health survey of 580+ CFOs and revenue cycle execs. Thus, we expect hospitals to increasingly eye investments in dedicated RCM tools like Olive’s to boost efficiency and stave off unnecessary expenditures.
We’ve already seen hospitals tap some of these AI-powered platforms amid the pandemic: In July, Colorado’s Boulder Community Health teamed up with UnitedHealth’s Optum to outsource its nonclinical operations, including RCM and care coordination, for instance.
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