You need to decouple care from labor as much as possible or you'll just end up trading off between cost and quality without meaningfully moving the frontier.
Healthcare in the US is mostly gated on physician labor. Physician labor is scarce. Scarce labor is expensive.
Physician labor shows negligible productivity growth over time. Wages have to increase to compete for labor against high productivity growth sectors (e.g. software). On top of that, institutionally managed bottlenecks on labor supply prop up high wages (e.g. limited residency slots artificially constrain the number of doctors entering the market). Training more doctors would supposedly compromise patient safety because it would mean lowering the bar for admissions and straining existing staff that need to train them. Even if you could admit and train them all, supplying enough doctors to meet market demand would cause a wage collapse breaking the ROI of med school expenses. So the labor is not going to get cheaper.
So care requires labor that's expensive and only getting more expensive. If you want to reduce the cost of care without reducing the cost of labor, you need to deliver more care per labor-hour (i.e. get more efficient). Provider orgs that employ doctors try to boost efficiency by squeezing every last ounce of time and energy out of their doctors and booking impossibly full schedules. They have a strong incentive to make this work, yet the doctors get only marginally more efficient (and way more burnt out).
To meaningfully move the cost/quality frontier, the majority of care cannot be handled by a human.
8VC laid out a vision [0] that I strongly recommend reading and mostly endorse. It's a long series of hard technical problems but I think the harder problem is actually winning over the institutional gatekeepers (FDA, state medical boards, CMS, AMA). I can't tell exactly what doctors are supposed to do in this envisioned future but the answer will have to be something that sways the gatekeepers even if it's not what's best for patients.
[0] https://8vc.com/resources/ai-healthcare-vision
Healthcare in the US is mostly gated on physician labor. Physician labor is scarce. Scarce labor is expensive.
Physician labor shows negligible productivity growth over time. Wages have to increase to compete for labor against high productivity growth sectors (e.g. software). On top of that, institutionally managed bottlenecks on labor supply prop up high wages (e.g. limited residency slots artificially constrain the number of doctors entering the market). Training more doctors would supposedly compromise patient safety because it would mean lowering the bar for admissions and straining existing staff that need to train them. Even if you could admit and train them all, supplying enough doctors to meet market demand would cause a wage collapse breaking the ROI of med school expenses. So the labor is not going to get cheaper.
So care requires labor that's expensive and only getting more expensive. If you want to reduce the cost of care without reducing the cost of labor, you need to deliver more care per labor-hour (i.e. get more efficient). Provider orgs that employ doctors try to boost efficiency by squeezing every last ounce of time and energy out of their doctors and booking impossibly full schedules. They have a strong incentive to make this work, yet the doctors get only marginally more efficient (and way more burnt out).
To meaningfully move the cost/quality frontier, the majority of care cannot be handled by a human.
8VC laid out a vision [0] that I strongly recommend reading and mostly endorse. It's a long series of hard technical problems but I think the harder problem is actually winning over the institutional gatekeepers (FDA, state medical boards, CMS, AMA). I can't tell exactly what doctors are supposed to do in this envisioned future but the answer will have to be something that sways the gatekeepers even if it's not what's best for patients.
[0] https://8vc.com/resources/ai-healthcare-vision