What 51 Health Care CEO/CFOs are saying about how AI will impact the industry

Research evidence excerpt

What 51 Health Care CEO/CFOs are saying about how AI will impact the industry

Managed Care

Kevin Fischbeck, Joanna Gajuk, Craig Jones

MCOs were bullish on the AI opportunity, indicating that, if anything, they thought that

the Market was not fully appreciating the opportunity that AI presents to reduce costs.

The near term opportunity is on reducing G&A spend and reducing friction within the

health care system. Longer-term, the opportunity is bring down medical spending.

Alignment Healthcare (ALHC)

Alignment Healthcare emphasized an “AI-first” strategy, with significant investment in

rebuilding its technology stack around large language models and predictive analytics.

Management expects AI to be deployed broadly across workflows, driving improvements

in both medical cost management (MLR) and administrative efficiency. While still in the

build-out phase, the company alluded to dramatic potential upside from deploying AI.

• “You've probably noticed we've been intentionally quiet about AVA for the last couple of

quarters. And we're doing that because of the intensity of work we are focusing on

rebuilding the tech stack, taking what we have, which I still think is best-in-class and

even making it better… We will share with you all the applications very shortly. But the

stuff the new technologies and the new models can do for us is staggering, both on

MLR and G&A.”

• “I think the new large-language models are going to help us in all of the workflows that

provide faster, more accurate, more timely data. And that data is going to help us have

better outcomes within the predictive analytics.”

• “But I think the opportunities there are going to be dramatic. I'll resuscitate a phrase

that I heard from somebody a couple of years ago, which is there's a lot of low-hanging