Amigo reposted this
A new report from PwC projects that medical costs will grow by 9% in 2027, with AI tools being a major driver. Brutal, but here's the real story. There are two very different categories of AI being implemented in healthcare, and they pull the total cost of care in opposite directions. (1) Revenue cycle management (RCM) technology, which helps providers bill more for a visit that already happened. This is the type of AI flagged in the report, and it helps providers document and code the visit at higher severity so payers reimburse more per claim. 70% of health plans rank it among their top inflators. (2) Clinical AI that expands access, improves patient outcomes, and allows more care to be delivered by the same team. Clinical AI can handle high-volume workflows like intake, triage, follow-up, and patient questions 24/7 at near-zero marginal cost per interaction. As a result, providers can grow their panel without a proportional rise in cost. This is the kind of technology the same report tells health plans and employers to reward, and it's what we build at Amigo. In healthcare, the binding constraint is capacity. Clinician time is the scarcest and most expensive input in the system, and most providers can't hire their way to better access due to workforce shortages and rising labor costs. The ultimate goal of AI in healthcare should be to allocate care more efficiently instead of moving money around in the system. The technology worth investing in right now is the kind that makes care sustainable to deliver.