Artificial Intelligence (AI) is a powerful tool for supply chain management and procurement services in healthcare systems. Almost any product can be procured/evaluated with maximum efficiency using AI – for example, personal protective equipment (PPE), medical equipment and equipment, supplies, components, contracts (including terms and costs), and even third-party vendor-specific services – All within hours.
AI is surprisingly cost-effective because it saves the healthcare system a lot of time and billions of dollars by improving efficiency. For example, AI can process hundreds of thousands of products or contracts in a working day or less — an achievement that could take years if it’s a manual task. AI helps hospitals control costs by increasing the cost-effectiveness and productivity of the procurement process, ultimately improving the patient experience.
a fast-moving science
In complex healthcare environments with multiple transactions, implementing AI can help employees make more informed critical decisions in terms of cost savings and maximizing efficiency. By doing so, AI reduces the risks associated with human error in these more mundane functions. This drives process improvements in the form of reduced inaccuracies in claims filing, inventory management systems, patient records and other aspects of healthcare operations.
As AI moves to the forefront, more and more people are starting to notice its great potential and ease of use in healthcare, leading to an ever-expanding range of applications. Scalable AI tools help healthcare systems optimize resources and tighten supply chains by identifying inefficiencies, redundancies, and cost-saving opportunities. The end result is increased efficiency, streamlined processes, reduced regulatory burdens, improved employee satisfaction, and time and money savings.
AI platforms provide the ability to scan millions of structured and semi-structured acquisition data to identify and classify similar items, compare prices and availability, and identify the most efficient ways to source and deliver critical goods and services.
An effective AI platform utilizes image analysis, data ingestion, and analysis algorithms to review data and obtain output within highly specific search criteria. Key elements of an AI platform include:
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- Natural language processing to develop cost-averse predictive models by automatically analyzing large amounts of data, finding direct comparisons, and making recommendations for improved business models
- Deep learning algorithms capable of translating structured and unstructured text into usable languages and data points (great for evaluating languages in contracts)
- Process and manipulate custom fields of acquired data from a variety of sources and format types to create actionable insights
- Image processing and computer vision techniques for inferring data from PDFs, images, and other unstructured data sources
- A human-centred design approach that enables the platform to build the specific functionality that users need to maximize their goals
Additionally, algorithm development, which can be customized to customers, is critical to delivering automated intelligence to make informed decisions in streamlining organizational structures, workforce training, and budget forecasting.
Healthcare Applications of Artificial Intelligence
Procurement is a time-consuming, arduous process in which the total cost and time invested does not always scale with the benefits. When multiple employees buy the same or similar items at different times, from different suppliers and at different costs, it can be nearly impossible to compare purchases and determine departmental or organizational needs. This is where artificial intelligence particularly shines.
For example, if artificial intelligence is used for procurement within a federal healthcare agency, the platform must align with all 10 procurement categories as defined by the General Services Administration (GSA), facilitating cross-agency alignment with category management requirements.
The Covid-19 pandemic has wreaked havoc on the healthcare business in 2020-2021. Healthcare leaders quickly realized that agility is a huge asset in effectively addressing ongoing supply chain and procurement challenges.Automated AI systems critical to helping hospitals shift focus to meeting rapidly changing demands
AI is being used to locate and source personal protective equipment that is in extreme shortage across all industries. In one case, AI identified every valid contract in the past five years that contained personal protective equipment and other required medical supplies within minutes. It also has the ability to sort each item by supply type, such as thermometers, brands of sanitizers, and size and quantity of nitrile gloves, to name a few. As a result, medical staff have access to hundreds of thousands of existing PPE and necessary medical supplies in less than a business day.
Moving forward with artificial intelligence
AI can accelerate the processing of large amounts of data in minutes (without human operators), resulting in better-informed decisions, lower costs, greater efficiencies, and keep healthcare organizations on top of each other.
This easy-to-use knowledge enables healthcare procurement professionals, subject matter experts, and clients to create smarter bids and more effectively negotiate the terms of new purchases. AI capabilities are also easily modified as new tools emerge and/or customer needs and the larger market evolves over time.
Artificial intelligence has become a key part of procurement decision support systems. With AI, everyday procurement activities are ultimately faster, more accurate, more efficient, and simpler – delivering unparalleled benefits to healthcare organizations’ operational functions, improving their standards of patient care and ultimately improving their bottom line.
Photo: Ivan Sherstiuk, Getty Images
