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As artificial intelligence promises to revolutionize healthcare, experts argue that achieving its full potential requires a better alignment between payment models, regulations, and intended outcomes.
The promise of artificial intelligence (AI) in healthcare is vast. From diagnosing diseases earlier to personalizing treatments for individual patients, AI has the potential to transform how we deliver care. However, realizing this potential is not just about developing cutting-edge technology; it also requires a systemic approach that aligns payment models, regulatory frameworks, and clinical outcomes.
Jennifer C. Goldsack, CEO of the Digital Medicine Society (DiMe), emphasizes that while the ambition for AI in healthcare is high, the execution often falls short. "We need to ensure that the financial incentives, regulatory guidelines, and clinical goals are all working together," she says. "Otherwise, we risk having powerful tools that don't translate into better patient outcomes."
One of the key challenges is the misalignment between how AI technologies are developed and how they are reimbursed. Currently, many health systems and insurance providers focus on short-term, procedure-based payments rather than long-term value or outcomes. This means that even if an AI tool can significantly improve patient care, it might not be adopted if it doesn't fit into existing billing structures.
For example, an AI algorithm that predicts which patients are at high risk of readmission could save healthcare systems millions by preventing unnecessary hospital stays. However, if the system is designed to pay for each hospital visit rather than overall health outcomes, there's little incentive to implement such a tool.
To bridge this gap, Goldsack suggests that policymakers and healthcare leaders need to rethink how they structure payment models. "We should move toward value-based care, where the focus is on improving patient outcomes rather than just the number of procedures performed," she explains. This shift would encourage the adoption of AI tools that demonstrate clear benefits in terms of patient health and cost savings.

Regulatory frameworks also play a crucial role. The Food and Drug Administration (FDA) has been proactive in developing guidelines for AI in healthcare, but more needs to be done to ensure these technologies are safe and effective. "Regulators must strike a balance between fostering innovation and protecting patients," Goldsack notes. "This means having clear standards for data quality, transparency, and fairness."
Another important aspect is the integration of AI into clinical workflows. For AI tools to be effective, they need to fit seamlessly into the daily routines of healthcare providers. This requires not only technical excellence but also user-friendly design and robust training programs. "Physicians and nurses are already stretched thin," Goldsack says. "We can't expect them to learn complex new systems on top of their existing responsibilities."
The path forward is clear: aligning payment models, regulatory expectations, and clinical outcomes will be essential for realizing the full potential of AI in healthcare. This will require collaboration between policymakers, regulators, technology developers, and healthcare providers.
Goldsack remains optimistic but cautious. "We have the tools to make a real difference in patient care," she says. "But it will take a concerted effort from all stakeholders to ensure that these technologies are used effectively and ethically."
As AI continues to evolve, the healthcare community must stay vigilant and adaptive. By working together to address the systemic challenges, we can bridge the gap between AI's ambitious goals and its practical application in real-world settings. The future of healthcare depends on it.
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Jennifer C. Goldsack | Healthcare IT News
↗ https://www.healthcareitnews.com/author/jennifer-c-goldsack
About the author
Amara's entry point into AI was an epidemiology role at a London research hospital, where she spent five years studying how digital health tools reached — or conspicuously failed to reach — underserved communities. Watching early algorithmic systems in healthcare quietly entrench existing inequalities, she redirected her career toward the systemic consequences of AI at scale. She covers AI through an unflinching lens: who benefits, who bears the cost, and what evidence actually says versus what the press release claims. Her writing is calm and precise, but she doesn't mistake balance for neutrality.
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