Centri Tech Pulse Series: The Impact of AI in Healthcare

Artificial intelligence (AI) is a term that has grabbed headlines and piqued the imagination of many as a key to the future of business. Generative AI has democratized AI consumption for enterprises in ways that previous AI applications or content applications could not. Much of the source code is open source, allowing everyone with technical understanding access. With Large Language Models (LLMs) such as ChatGPT bringing the functionality of AI to the masses, this industry is poised to change many industries in the way they are used and their execution.

Healthcare is an area of great potential for this advancement and has the potential to demonstrate its worth across many facets of the industry. The healthcare industry accounts for 11% of global GDP, or $9 trillion annually. From the development of drugs and vaccines to improving medical diagnosis and treatment, such technologies are being used in all stages of the value chain, boosting efficiencies across the overall healthcare system. The ability to introduce greater productivity and responsiveness in a sector that has struggled to be friendly to those who use the services can only be seen as a positive. On the more optimistic end of the spectrum, the hope is that it will help identify conditions and illnesses before they show up on traditional tests or are diagnosed by humans. It is a sector burdened by financial squeezes, paperwork, and regulations but also has the ability to improve the outcomes of life-or-death situations and decisions.

Source: Pitchbook            Geography: Global          As of March 31, 2023

The above chart from 2019 to the first quarter of 2023 from Pitchbook is a summary of deal values in AI and Machine Learning (ML) by industries in financial services, healthcare, IT, consumer AI, industrial AI, and transportation. Through the last four-plus years, healthcare has led these groups, topping out at $21 billion in 2021. While deal values are currently suppressed through Q1 of 2023, healthcare is still leading the way. As concerns over a recession wane in the second half of the year, it is expected that deal values will increase.

From a financial perspective, wider adoption of AI could lead to savings of 5% to 10% in US healthcare spending, or roughly $200 billion to $360 billion annually within the next five years, according to the Bureau of Economic Research. AI may also deliver non-financial benefits “such as improved healthcare quality, increased access, a better patient experience, and greater clinician satisfaction.”

Overall, the future of healthcare looks poised for a comprehensive change throughout the industry with the implementation of AI technology.

How Centri Can Help

At Centri, our experts offer a variety of solutions to ensure your business’s success. With integrating new technologies, competing against others in your space, and driving more revenue, the process of growing your healthcare company comes along with a lot of questions. Whether you’re having difficulty keeping pace with internal control reporting requirements or need guidance on leveraging your recent growth in a sustainable way — Centri can support you. Contact us to learn more.

Gerald Cullins

Partner | Valuation Practice Leader

Jerry is a Partner at Centri Business Consulting and the leader of the firm’s Valuation Practice. He has more than 20 years of valuation experience and has analyzed and valued companies for numerous purposes, participating in a wide variety of industries, including technology, life sciences, energy, retail, and manufacturing.. View Gerald Cullins's Full Bio

About Centri Business Consulting, LLC

Centri Business Consulting provides the highest quality advisory consulting services to its clients by being reliable and responsive to their needs. Centri provides companies with the expertise they need to meet their reporting demands. Centri specializes in financial reportinginternal controlstechnical accounting researchvaluationmergers & acquisitions, and tax, CFO and HR advisory services for companies of various sizes and industries. From complex technical accounting transactions to monthly financial reporting, our professionals can offer any organization the specialized expertise and multilayered skillsets to ensure the project is completed timely and accurately.

Philadelphia
Eight Penn Center
1628 JFK Boulevard
Suite 500
Philadelphia, PA 19103
New York City
530 Seventh Avenue
Suite 2201
New York, NY 10018
Raleigh
4509 Creedmoor Rd
Suite 206
Raleigh, NC 27612
Tampa
615 Channelside Drive
Suite 207
Tampa, FL 33602
Atlanta
1175 Peachtree Street NE
Suite 1000
Atlanta, GA 30361
Boston
50 Milk Street
18th Floor
Boston, MA 02109
Tysons Corner
1775 Tysons Blvd
Suite 4131
McLean, VA 22102
Denver
One Tabor Center
1200 17th St.
Floor 26
Denver, CO 80202
Centri Everywhere
1-855-CENTRI1
virtual@CentriConsulting.com

06/11/2024

3 Key Details for a Successful CECL Implementation

Current Expected Credit Losses (CECL) is a financial accounting standard introduced by...

Read More

05/29/2024

Bridging the GAAP: May 2024

Centri’s Bridging the GAAP newsletter highlights this month’s news, developments and emerging issues in...

Read More

05/22/2024

Mike Andrusko & Maxwell Heller Featured in ACG’s Middle Market Growth Article: Pent-up Energy Could Drive Fintech M&A Wave

Centri’s Mike Andrusko, Partner & Digital Assets Practice Leader, and Maxwell Heller,...

Read More