Tag: bain

Bain & Co: Getting the Most Out of Generative AI

Posted on by Jason Barry

Bain & Company is back at it again with more generative AI research, this time offering a series of ways for providers to get the most out of the tech without falling into potholes of hype.

The in-depth report gives a comprehensive overview of the current generative AI landscape, and delivers solid insight into the priorities of health system executives (N=94): 

  • Top use case priorities (next 12 months): charge capture & reconciliation (39), structuring & analysis of patient data (37), workflow optimization (36). [Chart 1]
  • Top use case priorities (2-5 years): predictive analytics & risk stratification (44), clinical decision support (41), diagnostics & treatment recommendations (37). [Chart 2]
  • Biggest barriers to implementation: resource constraints (46), lack of technical expertise (46), regulatory & legal considerations (33). [Chart 3]

Start small to go big. Although the survey itself included some valuable stats, the spotlight was stolen by Bain’s particularly pragmatic framework for guiding new implementations. 

  • Pilot low-risk applications with a narrow focus. Bain found that the systems already seeing the most success with generative AI are testing solutions in low-risk use cases where they already have the right data and can create tight guardrails (chatbot support, scheduling, rev cycle).
  • Decide to acquire, partner, or build. Bain recommends that CEOs think about different use cases based on availability of third-party tech and importance of the initiative.
  • Funnel experience into bigger initiatives. As generative AI starts to mature, organizations that gain experience and strategy alignment today will be best positioned for the more transformative use cases once they become clear.
  • Generative AI isn’t a strategy unto itself. Bain found that the trait separating top CEOs is their discipline, ensuring that every generative AI initiative reinforces their overarching goals as opposed to implementing shiny bells and whistles.

The Takeaway

It’s easy to get caught up in the generative AI hype cycle, so it was refreshing to see Bain recommend the one-foot-in-front-of-the-other approach to new implementations. Nearly every hospital boardroom is debating a massive list of potential AI investments, and although the home run use cases will be here soon, the consensus strategy for getting on base seems to be making low-risk plays with an immediate impact.

Providers Double Down on Software Investment

Posted on by Jason Barry

A new 2022 Healthcare Provider IT Report from Bain & Company and KLAS Research drew a lot of coverage this week with a headline takeaway that served as a nice break from recent bleak healthcare forecasts:

  • Providers are doubling down on software investments, even in the face of macroeconomic turbulence.

The research includes plenty of interesting data that’s worth checking out if you have half an hour to absorb it all, but here are the highlights for the visual learners with 3 minutes to spare.

  • Over 75% of providers expect to make new software investments next year, and one-third plan to invest more than usual (Figure 1). This signals a turning point in the provider IT market as many orgs who have stayed on the sidelines are now looking to retool software roadmaps for a “new normal.”
  • Of those investing heavily, nearly 80% cite labor shortages, inflation concerns, or restructuring (M&A, change in leadership) as the top catalysts (Figure 2).
  • Providers are particularly interested in revenue cycle management, security, and patient intake solutions as they look to address rising margin pressure and improve the productivity of limited staff (Figure 3).

The other main point that the report drives home is that providers are feeling increasingly overwhelmed by their expanding tech stacks and the proliferation of new vendors.

  • Over half are struggling with the flood of offerings and 24% believe that their existing tech stack keeps them too busy to stay current on new solutions (Figure 4). 
  • As a result, providers are actively trying to streamline their bloated tech stacks, with 72% attempting to expand with existing vendors before considering new ones and 63% looking to cut back on third-party software solutions over the next year (Figure 5).

The Takeaway

The consensus among providers appears to be that falling behind on software investment isn’t the way to turn around struggling performance, and neither is overloading their staff with disjointed products. That seems like a telltale sign that we’re in for more consolidation, especially with the report concluding that software vendors should pursue bolt-on acquisitions and strategic partnerships to create sticky platform offerings in a crowded field.

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