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AI-powered financial intelligence identifies cost-saving opportunities

AI finds opportunities for cost savings efforts across the Health System.

Hospital equipment. — Image by © Tim Sandle.
Hospital equipment. — Image by © Tim Sandle.

Mount Sinai becomes the first health system in New York City to use financial action platform that enables AI agents to proactively pinpoint opportunities for strengthening overall financial sustainability.

The Mount Sinai Health System has recently entered into a collaboration with Midstream Health, an artificial intelligence (AI)-powered proactive financial action platform, to implement real-time intelligence that enhances financial operations and improves workflow efficiency, ensuring better services and care for patients.

To kick-off the project, Mount Sinai will first deploy the AI-driven platform within its supply chain system to prioritize and manage existing opportunities for cost savings efforts across the Health System, such as identifying potentially underreported and missing payments that are expected to result in a fivefold return on investment, resulting in returned money to reinvest in the system’s services and infrastructure.

“Mount Sinai purchases and tracks supplies, equipment, and services well in excess of $1 billion a year to provide seamless patient care and advance medicine, research, and education,” says Vincent Tammaro, Executive Vice President and Chief Financial Officer of the Mount Sinai Health System.

Tammaro adds: “We recognize the value AI can bring as a supplement to our supply chain team, to ensure the pricing accuracy, efficiency, and value received from our contracting and purchasing processes. Receiving the full contract value of our rebates is an important component of managing supply expenses and mitigating the impact of rising inflation that contributes to health care unaffordability for our patients and communities.”  

The economic issue will be tackled through a platform called Midstream. This is a purpose-built to enhance financial operations within large multilayered health care organizations such as the Mount Sinai Health System, which encompasses seven hospitals and more than 400 outpatient practices.

To help to address this, the AI-powered platform pulls together fragmented, complex financial and contract data into a single source to create custom-built datasets to fill critical information gaps. After a comprehensive data foundation is established, domain-trained AI agents scan, flag, and prioritize cost-saving and margin opportunities, such as rebate discrepancies, pricing errors, payer underpayments, delayed payments, and denials.

Mount Sinai intends to use the platform to more efficiently and quickly model outcomes, source documents, and continuously monitor and analyse operations strategies.

The focus will be on driving thoughtful insights and better understanding of how the health system performs operationally, clinically, financially, and in support of its mission to optimize patient care, services, and performance.

The adoption will also demonstrate the way agentic AI can go beyond providing insights and instead help to accelerate time to savings and advancing financial sustainability to help address what some see as a healthcare affordability crisis.

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Written By

Dr. Tim Sandle is Digital Journal's Editor-at-Large for science news. Tim specializes in science, technology, environmental, business, and health journalism. He is additionally a practising microbiologist; and an author. He is also interested in history, politics and current affairs.

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