Agentic AI to unlock $120m in healthcare system savings

The tool covers patient interactions and end-to-end management processes.

Healthcare systems that use agent artificial intelligence (AI) in healthcare revenue cycle management (RCM) tools can save $60 million to $120 million and generate $6 billion in revenue, McKinsey & Company says.

According to McKinsey’s analysis, using AI to enable revenue recycling could result in a 30% to 60% reduction in collection costs, faster realization of cash, and refocusing staff on patient value rather than administrative tasks.

It added that by 2025, more than 30% of providers are prioritizing the implementation of AI and automation in seven specific use cases across the revenue cycle, compared with four to five use cases in 2023 and 2024.

RCM leaders say the strongest demand for AI front-end solutions in 2025 will be prior authorization, accounting for 60%, according to the consultancy.

The year before, 44% of RCM functions planned to use AI pre-authorization within the next three years.

In the mid-term, Customer Documentation Improvement (CDI) showed the highest demand for the tool during the year. The demand here the previous year was 20%.

For AI backend capabilities, 61% of requests in 2025 were rejected or appealed, with 23% planning to implement AI in the previous year.

For patients, agent AI in RCM could allow them to access care faster and streamline billing, McKinsey said.

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