Who Pays for Healthcare AI (Part II)

Part II of Morgan Cheatham's article on Healthcare AI pricing models explores five usage-based options: Linear, Volumetric, Bundled Usage, Managed Services, and Device-Maintenance. Each model's strengths, weaknesses, and appropriate use instances are discussed, along with examples of companies employing each method. Critical decisions that AI companies must make are outlined when choosing a pricing model, including defining a unit of value and relating value delivered to the pricing model. The article also covers the funding of linear, usage-based pricing models, managing value assignment, and consumer cash pay. Transitioning between models and potential challenges faced are also discussed.

Opens on Morgan Cheatham's Substack