The news: Provider-owned incubator Innovation Lab is teaming up with healthcare AI company Olive to develop AI-driven automation tools to improve and optimize healthcare operations and clinical workflows. Together, they’ll leverage Innovation Lab’s access to health system resources and Olive’s AI platform to drive more efficiencies in the health systems involved.
For context, Innovation Lab is a for-profit venture spearheaded by 6 major health systems across Ohio, Louisiana, South Dakota, California, and Washington state: Bon Secours Mercy Health, Franciscan Missionaries of Our Lady Health, Avera Health, CHOC Children’s, Valley Children’s Healthcare, and MultiCare Health System.
How we got here: This collaboration comes on the heels of Olive announcing a new set of AI solutions and scoring its biggest funding haul yet this month alone: It brought in $400 million, vaulting its valuation to a whopping $4 billion. This underscores how providers are ready to plunge into AI investments to make traditionally cumbersome administrative processes (like prior authorizations and clinical supply chain operations) more efficient in the wake of digital health transformation: 61% of healthcare leaders indicate they’re planning to deploy AI or machine learning tech to speed up their digital transformation goals—a jump from the 38% of execs who said AI was a priority pre-pandemic, per a January 2021 BDO survey of 100 healthcare executives.
What are the most pressing pain points providers hope to solve with AI? The pandemic shined a light on the limits of existing healthcare operations, revenue streams, and health system/hospital capacity. So, providers are looking to AI solutions to reengineer healthcare processes in a way that streamlines operations and care and helps them save costs.