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Is AI The Answer to The CFO's Labor Cost Woes?

Analysis  |  By Amanda Norris  
   February 08, 2024

Maybe, but leaders are being cautious.

 

Reducing labor costs is a top concern for CFOs, especially since the money CFOs pumped into contract labor during the pandemic is now majorly stressing the bottom line.

Changes in the workforce landscape are forcing CFOs to be more creative, meaning many are looking toward AI to fill workforce gaps and optimize processes.  

But is it the answer to this crisis? It will probably take more time for healthcare leaders to rely on generative AI.

According to PricewaterhouseCoopers’ (PwC) annual global survey, which interviewed 4,702 CEOs across the world, it found that healthcare leaders are less likely to turn to generative AI than those in most other industries.

As HealthLeaders reported, the findings underscore AI’s growing presence in businesses, but also healthcare’s tepid willingness to fully invest in the technology right now—even amid heightened workforce challenges.

When looking at this data from a healthcare CFO’s perspective, it’s not surprising AI has had a slower roll out as every financial decision needs to be weighed very carefully—and as we know healthcare is a very complicated market with a lot at stake.

But, that’s not to say AI hasn’t already taken off for some CFOs.

In fact, Stephen Forney, SVP and CFO of Covenant Health, told HealthLeaders AI plays an important part in ensuring the organization’s financial stability and alleviating staff burdens.

“At Covenant, we've seen how AI can play a crucial role in addressing financial challenges by streamlining workflows and improving revenue cycle management,” he says.

Covenant also leverages an automated philanthropic aid platform that helps keep them up to date on the latest aid programs, alerts them when they're open for enrollment, and helps match its patients to the program they're best suited for, streamlining the process significantly for all stakeholders Forney says.

“Integrating AI into our systems promotes efficient resource utilization and better financial outcomes,” Forney says.

So what are your thoughts? Is your organization proceeding with caution when it comes to AI?

Amanda Norris is the Associate Content Manager of Finance, Payer, Revenue Cycle, and Strategy for HealthLeaders.


KEY TAKEAWAYS

Does it seem like AI is everywhere?

Maybe, but healthcare leaders are less likely to turn to AI than in most other industries.

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