How AI is helping healthcare startups multiply their patients and chase profits

A rising wave of healthcare startups is increasingly relying on artificial intelligence to enhance their operational efficiency and expand patient care capabilities. With the healthcare sector facing significant challenges such as clinician shortages, tight financial margins, and heightened levels of physician burnout, these companies view AI as a potential game-changer that could enable practitioners to manage larger patient loads while maintaining high standards of care. Daniel Perez, CEO and co-founder of Hinge Health, shared insights into their vision for the future, stating, "The long-term goal is to gradually replace certain in-person care aspects with technology-driven solutions." While some organizations are fully embracing AI to automate various care processes, others are adopting a more cautious approach, opting to utilize AI for non-clinical tasks to safeguard patient experiences. This strategic choice has been beneficial for some startups, as highlighted by Stephen Smith, CEO of NOCD, who noted that AI is enabling companies that previously faced financial difficulties to achieve profitability and sustain their operations in the long run. In the realm of musculoskeletal care, companies like Hinge Health and Sword Health are at the forefront of AI applications, utilizing the technology to streamline physical therapy practices. Sword Health, for instance, aims to significantly increase the caseloads of its physical therapists, targeting an average of 700 patients per therapist by the end of 2024—a major leap from the initial expectation of managing 200 to 300 patients. The incorporation of AI tools, such as automated messaging for patient communication and prioritization of care, is expected to play a crucial role in achieving these ambitious targets. Similarly, Hinge Health has implemented AI to dramatically reduce the hours clinicians spend on physical therapy tasks, claiming a 95% reduction in clinician hours dedicated to therapy sessions. Meanwhile, virtual pediatric care startup Summer Health is also leveraging AI to increase patient interaction, with founder Ellen DaSilva suggesting that AI could enable providers to see up to 20 patients per hour, significantly easing the burden in specialties like pediatric care that are experiencing clinician shortages. Despite the enthusiasm for AI's transformative potential, not all healthcare startups are convinced about its efficacy in improving patient care. Omada Health, for example, has traditionally utilized AI for behind-the-scenes tasks but has been cautious about deploying it directly in patient interactions. Co-founder Sean Duffy emphasized the importance of human accountability in healthcare, stating, "I always quip that there's a reason artificial intelligence is a buzzword and artificial empathy is not." Virta Health, on the other hand, has seen success by integrating machine learning into its operations, achieving a significant turnaround in profitability thanks to generative AI. The company utilizes AI to create personalized care plans and provide around-the-clock support for patients. NOCD is adopting a careful approach, utilizing AI to manage administrative tasks while ensuring that the technology does not replace the critical human element in patient care. CEO Stephen Smith acknowledged the delicate nature of their work with individuals suffering from obsessive-compulsive disorder, emphasizing the need for thorough research and caution in implementing AI in clinical settings. As healthcare startups continue to explore the vast possibilities of AI, the balance between leveraging technology and maintaining quality patient care remains a pivotal focus in their strategies for growth and sustainability.