anton lin

I’m increasingly convinced that AI value is going to accrue to companies that deliver services in healthcare. 3 specific places: 1) micro private equity that acquires companies and then injects AI into their operations. Traditional success in acquiring healthcare businesses has been around negotiating better rates, controlling referrals, etc. But with AI maybe you can reduce the operating expense, improve margins, and just hold the business while it generates cash. This would probably work particularly well in areas where you need several full time staff to do administrative work like clinical trial sites, durable medical equipment suppliers, legacy third-party administrators, etc. Less so in places that have strict staffing ratio requirements. 2) outsourced departments that’re powered by AI. For example, hospitals are now trying to completely outsource their billing departments. A company can come in and be willing to take over all the headcount/back-office services themselves and do it for much less thanks to AI. For example, instead of 10 medical billers the hospital hires as full time employees, a company uses 1 medical biller + AI and charges 50% of the cost. 3) unbundling a package of services and completely automating part of it. A made up example, legal firms where you can choose between a lawyer reading a contract for $X or an AI they trained reading a contract for 20% of the cost. Or InPharmD, which is essentially a clinical pharmacist + AI which they use to create different products (ask a complex question about drugs, or for a hospital committee to generate reports on what drugs they should keep on hand).