Hospitalogy

🏥 The AI Scribe Productivity Misconception

Blake Madden · JAN 20

Happy Tuesday, Hospitalogists!

Today I’ve got a request from a community member for a post-acute EMR solution (see below), an AI scribe hot take, and some notable news. Enjoy!

ASK HOSPITALOGY

Member Question

 

This question has been asked by a member to help them support a client. Can you help?:

 

“We are searching for a suitable EMR solution for the post-acute care continuum, including Skilled Nursing, Home Health, and Hospice. I am hoping you can assist me in helping our client, an independent post-acute enterprise, as they aim to consolidate disparate legacy solutions onto a single enterprise platform.

 

The solution must support:

  • Full revenue cycle management (RCM)
  • Clinical documentation for physicians, APPs, nurses, therapists, and other ancillary staff
  • Provider orders
  • Accreditation-compliant quality and utilization tracking
  • Reporting and analytics for payer and risk-bearing agreements
  • Interface-ready data sharing and communications with ecosystem partners
  • Any additional features that may be necessary”

If you or your organization have experience and/or insights to share, please join the conversation.

AI OUTTAKES WITH RIK RENARD

This piece was co-written with Rik Renard, who shares weekly insights on healthcare AI and strategy on LinkedIn.

 

AI scribes increased physician productivity by... $58 per week.

 

That's what the new JAMA Network Open study actually found. UCSF tracked 1.2 million encounters across 1,565 physicians and found AI scribe adopters saw 1.81 more wRVUs - translating to roughly $3,044 annually.

 

For context, AI scribe tools cost health systems $1,200-3,600 per physician annually. So we're looking at roughly break-even economics based purely on physician productivity.

 

What the study found is that, physicians who use an AI scribe have:

  • 0.80 more patient encounters per week (very modest!);
  • 1.81 RVU increase per week; and
  • No change in claim denials (…yet)

The relatively "meh" results with regards to productivity gains are in line with the NEJM AI randomized trial that showed a tool like Nabla saves +- 23s per note while DAX saves 5s per note (not even statistically significant). And as an aside to this finding, we’d be curious to see this metric broken out by engagement cohort. For instance, a Nabla super user is almost certain to save significantly more time than a non user.

 

But here’s what the study is missing. Measuring AI scribes purely on physician productivity misses the significant positive downstream impact and associated externalities ambient scribing creates.

 

The real value isn’t in “doctor sees one extra patient.” It’s in what happens three departments down the line that nobody’s studying. We recently read a good example from Dr. Jared Dashevsky (my guy!) which emphasized this point:

  • Ambient AI listens to the conversation
  • Patient mentions they've smoked for 20 years, they're 55, still smoking
  • The AI automatically pends an order for a low-dose CT chest scan
  • This gets done within the health system (they get reimbursed for that)
  • They find a nodule that's large enough
  • They refer them to their own pulmonologist and oncologist
  • Everything stays in the system

(By the way, he also just wrote a great overview of how he uses Doximity AI tools in his workflows - good timing given the Doximity vs. OpenEvidence clown fiesta going on).

 

Same logic for suggesting preventative screenings, flagging specialist referrals before patients leave, better coding that captures higher reimbursement, quality metrics for value-based care contracts.

 

(I know this sounds cynical because it's all about revenue cycle management, but that's actually the game that needs to be played in healthcare.)

 

tldr: AI scribes get sold through the finance department on boosts to physician productivity when in actuality these investments deliver returns through workflow improvements three departments down the line - downstream effects that we're not studying.

ON YOUR RADAR

 

*This read is brought to you by one of my brand partners who help make this newsletter possible.

HEALTHCARE HEADLINES

  1. Healthcare PE deal activity finished Q4 on a strong note, up 46.3%, largely driven by a small number of billion-dollar, high-conviction bets. PE appetite is strongest for assets with pricing power, recurring revenue, and embedded workflow relevance (devices and health IT), while services remain investable but face tighter underwriting and flatter growth expectations. Read more from Pitchbook.
  2. AbbVie has reached an agreement with the Trump administration to lower Medicaid prices and invest $100 billion in U.S.-based R&D, manufacturing, and capital investments over the next decade in exchange for tariff and pricing exemptions. AbbVie also plans to expand direct-to-patient access for select medications through the TrumpRx government portal.
  3. UnitedHealthcare has launched a 6-month Rural Payment Acceleration Pilot designed to accelerate Medicare Advantage payment timelines to independent rural hospitals by 50%, from less than 30 days to less than 15 days, on average. The pilot, initially rolling out in Oklahoma, Idaho, Minnesota and Missouri, aims to deliver immediate cash‑flow relief and support the sustainability of facilities under financial pressure. UHC will closely coordinate the pilot with participating hospitals and use insights from the program to inform potential broader expansion of accelerated payment strategies for rural hospitals.

I hope you enjoyed! Reply to let me know your thoughts.

– Blake

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Written by Blake Madden

By Blake Madden

Hospitalogy

The weekly read for the people running the business side of care delivery.