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February 21, 2024
Who Pays for Healthcare AI? (Part I)
Morgan Cheatham on Substack
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Summary
Healthcare AI payment models require innovation for industry potential realisation. Current hospital IT budgets limit software company growth, with healthcare AI adoption being hindered as a result. Business model innovation could enable greater value capture. Several ways to increase addressable spending and the TAM for software and AI are presented, including re-architecting operational expenses. Healthcare AI business models are divided into usage-based and performance-based, with the industry gradually shifting to pay-for-performance.
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