--- title: Charting a path to value creation in Healthcare AI description: Even after the hype around AI dissipates, it is likely to have an impact akin to that of software, the internet, or mass production. image: https://finmedpartners.com/hubfs/AI-healthcare-1.webp --- [![FinMed Partners-1](https://finmedpartners.com/hs-fs/hubfs/FinMed%20Partners-1.png?width=200&height=65&name=FinMed%20Partners-1.png "FinMed Partners-1")](https://finmedpartners.com/) - [About](https://finmedpartners.com/about) - [Services](https://finmedpartners.com/services) - [Team](https://finmedpartners.com/team) - [Insights](https://finmedpartners.com/insights) - [Blog](https://finmedpartners.com/blog) - [HFF 2026](https://finmedpartners.com/hff) [CONTACT US](https://finmedpartners.com/contact-us) ## Search # Charting a path to value creation in Healthcare AI ![](https://finmedpartners.com/hubfs/AI-healthcare-1.webp) ![ Rob Pinataro, MBA, QTE](https://finmedpartners.com/hubfs/RobPinataro.jpeg) [Rob Pinataro, MBA, QTE](https://finmedpartners.com/blog/author/rob-pinataro-mba-qte) January 14, 2025 Share : [mailto:?subject=Check+out+this+blog+post%3A+Charting+a+path+to+value+creation+in+Healthcare+AI&body=I+thought+you+might+enjoy+this+blog+post%3A+https%3A%2F%2Ffinmedpartners.com%2Fblog%2Fcharting-a-path-to-value-creation-in-healthcare-ai](mailto:?subject=Check+out+this+blog+post%3A+Charting+a+path+to+value+creation+in+Healthcare+AI&body=I+thought+you+might+enjoy+this+blog+post%3A+https%3A%2F%2Ffinmedpartners.com%2Fblog%2Fcharting-a-path-to-value-creation-in-healthcare-ai) ##### **AI is a CEO and Board-Level Strategic Decision** CEOs and boards need to determine whether AI can help them achieve their value creation goals in healthcare-related businesses. U.S. healthcare with its $5T scope and exabytes of data presents an attractive AI transformation target. In fact, In June 2024, Silicon Valley Bank [reported](https://www.svb.com/globalassets/trendsandinsights/reports/svb-the-ai-powered-healthcare-experience-2024.pdf?utm_source=hs_email&utm_medium=email&_hsenc=p2ANqtz-_vE15MM8jP4QZ_IydLYocExZ07DCvVMyGB6tZ7zUlXWj9MfighBtvXwJTVqVjAzLsXp1EZ), “One in four dollars invested in healthcare companies is going to companies that are leveraging AI.” The hype around AI has been extraordinary and historically, heavily hyped innovations have turned out to be more narrowly useful than hoped. AI, however, is unique and, even after the hype dissipates, is likely to have an impact akin to that of software, the internet, or mass production. Like previous payment technologies adopted by large enterprises, the benefits cannot be only about speed; they need to also be about efficiency and reliability. By adopting these technologies, healthcare providers can reduce administrative burdens and focus more on patient care rather than paperwork. One of the strongest initial use cases of accelerated payments has been reducing employee payroll cycle time. In an era where healthcare workers are scarce and in high demand, improving the payroll experience affecting these employees could be a catalyst for adoption of faster payments in the healthcare industry. ##### **AI is Over Hyped and Still More Promising than Previous Innovations** AI is unlike previous automation efforts because it is not rules-based and thus does not need to anticipate every use case in terms of inputs, environmental conditions, or outputs. AI achieves this by using data models and algorithms which outwardly mimic human abilities to absorb and apply information autonomously. An AI model then is like an assembly line for the real-time mass production of knowledge worker “assistants” increasing the supply of knowledge work. Greater supply will reduce prices enabling better healthcare outcomes at lower cost. According to a 2024 McKinsey study, early adopters of AI have identified seven promising market segments: ![McKinsey Gen AI graphic](https://finmedpartners.com/hs-fs/hubfs/McKinsey%20Gen%20AI%20graphic.png?width=890&height=472&name=McKinsey%20Gen%20AI%20graphic.png) ##### **Success in AI Transformation Requires an Enterprise-wide Approach** AI transformation is difficult, and results take time. As of July 2024, 58% of healthcare firms striving to use AI, all subject to sponsorship bias, [reported](https://www.svb.com/globalassets/trendsandinsights/reports/svb-the-ai-powered-healthcare-experience-2024.pdf?utm_source=hs_email&utm_medium=email&_hsenc=p2ANqtz-_vE15MM8jP4QZ_IydLYocExZ07DCvVMyGB6tZ7zUlXWj9MfighBtvXwJTVqVjAzLsXp1EZ) achieving positive ROI, yet most had not quantified the ROI. This reflects both the newness and the difficulty of AI. Firms will raise their probability of success if they approach AI as an enterprise-wide transformation like the introduction of Six Sigma, a new ERP system, or offshoring. Thus, culture, training, strategy, resources, and investment must be aligned and effectively governed. Success starts with setting a SMART goal for the program, e.g. “Increase yield on appeals of denied medical claims by 20% while reducing the cost per appeal by 15% relative to baseline within 24 months.”  Evaluation of the investment need, capabilities of the firm and ROI requirements of shareholders can then inform final go/no-go decision making. Once a “Go” decision is made, firms will benefit from deploying best practices in enterprise change leadership. ##### **Recommended Best Practices for Delivering Value through AI Projects** ###### Human Capital: - Ensure CEO visibly champions the project through frequent communication - Ensure the firm or key leaders have experience leading enterprise-wide change - Ensure the firm has the internal AI leadership and technical talent needed - Train all staff on AI basics and the reasons for the initiative; train key staff to drive AI - Use KPIs, OKRs and bonus plans to align incentives across the firm - Train staff and implement policies and procedures to enforce ethical AI practices - Prioritize, allocate and maintain necessary resources throughout the project ###### **Product-Market, Legal and Business Model Fit:** - Evaluate before project launch whether customers will embrace the change - Consider potential changes in pricing models or contracts - Obtain legal counsel on AI, privacy, bias, cybersecurity, and liability regulations - Obtain legal counsel on the projected impact of intellectual property law on profit allocation between human and AI-model authors of IP ###### Technical: - Ensure the firm has sufficient data quantity and quality - Ensure reproducibility, credibility, and transparency of AI models - Ensure firm’s technology infrastructure is suitable - Use pilots to build support through early wins - Plan for integration of the AI into the firm’s ecosystem including DR/BCP/Audit - Conduct benchmarking visits to relevant firms with AI initiatives ##### **Prudence Will Increase AI Returns** The value creation potential of AI is exciting and realizing it is challenging. CEOs and boards who succeed will deliver better revenue growth, profitability, customer engagement and valuation multiples than their non-AI competition. This is predictable based on the high probability that these firms will couple better current performance with the ability to innovate more rapidly and capital-efficiently than competitors. The AI transformation journey is one for the bold and those who couple prudence with their boldness will be the winners.   *Rob Pinataro has 25 years of SaaS, fintech and healthcare leadership experience, focusing on business strategy, innovation, transformation and growth. He recently led Payspan as COO then as CEO through two PE exits raising over $330M in capital. Rob currently serves on the boards of Connexure, Atlanta’s Technology Executive Roundtable, Cassandra Official Music Global, and the Advisory Council of Georgia’s USO.  He advises PE firms on fintech/ healthcare investment opportunities and value creation through better execution of digital and cybersecurity strategy.* TAGS [#Payment Trends](https://finmedpartners.com/blog/tag/payment-trends) [#AI in Healthcare](https://finmedpartners.com/blog/tag/ai-in-healthcare) Share : [mailto:?subject=Check+out+this+blog+post%3A+Charting+a+path+to+value+creation+in+Healthcare+AI&body=I+thought+you+might+enjoy+this+blog+post%3A+https%3A%2F%2Ffinmedpartners.com%2Fblog%2Fcharting-a-path-to-value-creation-in-healthcare-ai](mailto:?subject=Check+out+this+blog+post%3A+Charting+a+path+to+value+creation+in+Healthcare+AI&body=I+thought+you+might+enjoy+this+blog+post%3A+https%3A%2F%2Ffinmedpartners.com%2Fblog%2Fcharting-a-path-to-value-creation-in-healthcare-ai) ## Our Blog [View All](https://finmedpartners.com/blog) [![](https://finmedpartners.com/hs-fs/hubfs/Tyler%20Stafford%20cropped.png?width=352&name=Tyler%20Stafford%20cropped.png)](https://finmedpartners.com/blog/ceo-chat-panacea-financial) ### [CEO Chat: Panacea Financial](https://finmedpartners.com/blog/ceo-chat-panacea-financial) ![Tyler Stafford, CEO & Co-Founder](https://finmedpartners.com/hubfs/Tyler%20Stafford%20square.png) [Tyler Stafford, CEO & Co-Founder](https://finmedpartners.com/blog/author/tyler-stafford-ceo-co-founder) We founded Panacea to build a financial platform designed specifically for doctors — from medical school through residency, practice ownership, and beyond. [![](https://finmedpartners.com/hs-fs/hubfs/Instinct%20Pay.png?width=352&name=Instinct%20Pay.png)](https://finmedpartners.com/blog/providers-show-strong-interest-in-embedded-financial-services) ### [Providers show strong interest in embedded financial services](https://finmedpartners.com/blog/providers-show-strong-interest-in-embedded-financial-services) ![Henri Cattier, Partner](https://finmedpartners.com/hubfs/henri-cattier.jpeg) [Henri Cattier, Partner](https://finmedpartners.com/blog/author/henri-cattier-partner) Healthcare providers are signaling they want payment processing and the broader universe of embedded finance built directly into their practice software. [![](https://finmedpartners.com/hs-fs/hubfs/Zelis%20blog%20image.png?width=352&name=Zelis%20blog%20image.png)](https://finmedpartners.com/blog/ceo-chat-zelis) ### [CEO Chat: Zelis](https://finmedpartners.com/blog/ceo-chat-zelis) ![Dylan Papa, SVP & GM, Commercial Growth & Partnerships](https://finmedpartners.com/hubfs/Dylan%20Papa%20Headshot%20avatar.jpeg) [Dylan Papa, SVP & GM, Commercial Growth & Partnerships](https://finmedpartners.com/blog/author/dylan-papa-svp-commercial-growth) Zelis was founded to solve a core challenge in healthcare: a fragmented financial experience that is difficult to navigate. [![](https://finmedpartners.com/hs-fs/hubfs/DML%20Square%202025-1.png?width=352&name=DML%20Square%202025-1.png)](https://finmedpartners.com/blog/ceo-chat-boost-payment-solutions) ### [CEO Chat: Boost Payment Solutions](https://finmedpartners.com/blog/ceo-chat-boost-payment-solutions) ![Dean M. Leavitt, Founder & CEO](https://finmedpartners.com/hubfs/DML%20Square%202025%20square.jpg) [Dean M. Leavitt, Founder & CEO](https://finmedpartners.com/blog/author/dean-m-leavitt-founder-ceo) Boost was founded to address inefficiencies in B2B payments where legacy methods create friction, delay and unnecessary cost. [![](https://finmedpartners.com/hs-fs/hubfs/Pharmacist%20giving%20credit%20card%20to%20costumer%20at%20pharmacy.jpeg?width=352&name=Pharmacist%20giving%20credit%20card%20to%20costumer%20at%20pharmacy.jpeg)](https://finmedpartners.com/blog/the-acceleration-of-surcharging-a-new-reality-for-healthcare-payments) ### [The Acceleration of Surcharging: A New Reality for Healthcare Payments](https://finmedpartners.com/blog/the-acceleration-of-surcharging-a-new-reality-for-healthcare-payments) ![David Stievater, Partner](https://finmedpartners.com/hubfs/David%20S%20-%20Sep%202023.jpeg) [David Stievater, Partner](https://finmedpartners.com/blog/author/david-stievater-partner) Surcharging is accelerating. J.D. Power finds 35% of U.S. small businesses now surcharge credit cards. Healthcare is moving faster. [![](https://finmedpartners.com/hs-fs/hubfs/DSC00909.jpeg?width=352&name=DSC00909.jpeg)](https://finmedpartners.com/blog/ceo-chat-inbox-health) ### [CEO Chat: Inbox Health](https://finmedpartners.com/blog/ceo-chat-inbox-health) ![Blake Walker, Co-Founder, CEO](https://finmedpartners.com/hubfs/DSC00909%20copy.jpeg) [Blake Walker, Co-Founder, CEO](https://finmedpartners.com/blog/author/blake-walker-co-founder-ceo) We founded Inbox Health to approach patient billing as a communication platform rather than just a payment problem. # The intersection of healthcare and payments We are keeping tabs on what is happening in healthcare payments. Let us do the work so that you don't have to. Sign up for our weekly newsletter for synthesized insights into the latest news in this space. 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