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Who Pays for Healthcare AI? (Part I)

February 21, 2024
Morgan Cheatham on Substack
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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