Change Healthcare Research: AI to Become Widespread in Hospital Revenue Cycle by 2023

Rhea-AI Summary

Change Healthcare's study reveals that AI will significantly reshape revenue cycle management in healthcare over the next three years. Currently, 65% of hospitals use AI in revenue cycle management (RCM), with expectations that 98% will adopt it widely by 2023. However, disparities in AI familiarity exist among executives, with only 12% seeing their AI initiatives as mature. Concerns around budget, security, and accuracy still hinder adoption, highlighting the need for strategic alignment among healthcare leaders to harness AI’s full potential.

Positive

• 65% of hospitals currently use AI in revenue cycle management.
• Expectations that 98% of U.S. healthcare leaders will use AI in RCM within three years.
• 81% of executives conducted technology evaluations for AI solutions to improve RCM.
• Providers that strategically close gaps in AI understanding can gain financial, operational, and clinical advantages.

Negative

• Only 12% of respondents consider their AI implementations mature.
• Significant gaps in AI usage and satisfaction exist between RCM roles (78%) and non-technical executives (25%).
• Budgetary, security, privacy, and accuracy concerns complicate AI adoption.

Artificial Intelligence (AI) will transform the way doctors, hospitals, and healthcare systems identify, collect, and manage their revenue cycle over the next three years as healthcare organizations evolve from day-to-day use to strategic integration within their systems, according to a new study by Change Healthcare. Two-thirds of hospital and health system executives report using AI in some revenue cycle capacity and nearly all expect to be using it within three years. However, familiarity with AI and its impact varies wildly among executives, IT, and revenue cycle leadership—and there are budgetary, security, privacy, and accuracy concerns complicating AI adoption.

These findings and more are detailed in Poised to Transform: AI in the Revenue Cycle, a national study of 200 revenue cycle, IT, finance, and C-suite decision makers commissioned by Change Healthcare (Nasdaq: CHNG) and conducted by market researcher ENGINE Insights. The study polled healthcare executives to understand their knowledge of and familiarity with AI, discover areas for improvement, and learn how the technology is used now and will be used in the future.

“AI is primed to transform revenue cycle management for those providers who understand how to use it strategically,” said Luyuan Fang, PhD, chief AI officer at Change Healthcare. “Providers that close the gaps revealed by this research will be well-positioned to reap financial, operational, and clinical gains from the technology—including improving the end-to-end revenue cycle, claims accuracy, denial reduction, clinical insights, level-of-care prediction, and more. But this potential can only be realized when executive stakeholders are aligned on strategic deployment of AI and how to measure success.”

The research focused on healthcare executives with decision-making authority from the executive, financial, revenue cycle management, and IT departments at U.S. hospitals and health systems. Key research findings include:

• Nearly all U.S. hospitals plan to be using AI pervasively across the revenue cycle within three years. About two-thirds of all respondents (65%) report that they now use AI in RCM (compared to 89% of those in RCM roles), but AI’s application is limited, and rarely spans the end-to-end revenue cycle. While only 12% of respondents consider their AI implementations to be mature today, 35% expect their implementations to be “early mainstream/fully mature” by 2023. By 2023, 98% of healthcare leaders anticipate using AI in RCM, and 81% have conducted a tech evaluation, reviewing AI technology providers, solutions, or software systems aimed at improving RCM processes.

• Stark gaps in opinion are hindering healthcare from fully capitalizing on the transformative power of AI. Reported usage of AI in RCM is much higher among those in revenue cycle roles (89%) than IT (63%) and non-technical executives (48%).Those in RCM roles (78%) are satisfied with their current use of AI, compared to just 46% of IT leaders and 25% of non-technical executive and financial respondents. An overwhelming majority

FAQ

What were the key findings of Change Healthcare's AI study on revenue cycle management?

The study found that 65% of hospitals currently use AI in revenue cycle management, with expectations that 98% will adopt it within three years. However, only 12% see their implementations as mature.

How does AI adoption in healthcare vary among executives?

AI usage is reported at 89% among revenue cycle roles, compared to 63% for IT roles and just 48% for non-technical executives, indicating a significant gap in understanding and satisfaction.

What challenges are hindering AI adoption in the healthcare sector?

Concerns around budget, security, privacy, and accuracy are complicating the widespread adoption of AI in revenue cycle management.

What is the anticipated future of AI in revenue cycle management by 2023?

By 2023, 98% of healthcare leaders anticipate using AI pervasively across revenue cycle management processes.