According to a recent study by Bain & Company and KLAS Research, about 75% of healthcare providers and payers in the U.S. have increased their IT spending over the past year. This rise in technology investment comes after the COVID-19 pandemic showed many weaknesses in healthcare systems and pushed faster use of new technologies.
Healthcare organizations are now focusing their money on several key areas:
These priorities show that healthcare leaders believe technology can help fix old problems in healthcare services and administration.
The healthcare payer sector faces particular problems with old technology. More than 65% of payers said their outdated IT systems limit their ability to grow and work efficiently. Many are putting effort into updating core administrative systems like claims processing, care coordination, and utilization management. On the provider side, they are trying to add AI tools into their electronic health record (EHR) systems while managing budget limits and the need to improve workflows and patient care.
AI use in healthcare is growing quickly every year. In 2024, about 15% of healthcare providers say they already have an AI strategy. This is up from 5% in 2023. Meanwhile, 25% of payers have adopted an AI strategy this year. These numbers show a clear rise in AI plans, but the growth is still careful due to challenges.
Eric Berger from Bain & Company said healthcare payers and providers are more willing to try advanced technologies, including AI, to help improve patient results and make operations smoother. This openness is mainly because AI can lower administrative work, help with clinical decisions, and support better revenue cycle management by automating repetitive tasks.
Still, many hurdles remain for wider AI adoption. Rules and laws are some of the main challenges. Healthcare groups must make sure AI tools follow federal and state laws and keep patient data private and safe. Costs, especially with tight budgets, also affect how fast AI strategies can be used. Providers want proof that AI improves care without causing new risks.
The American Medical Association (AMA) recently surveyed over 1,000 doctors about their views on AI in healthcare. The results show growing acceptance. In 2024, 66% of doctors said they use AI tools in their work, up from 38% in 2023. Also, 68% saw benefits in using AI, showing more doctors are open to it despite worries about its effect on workflows and the need for clinical proof.
The AMA focuses on the idea of augmented intelligence in healthcare. This means AI helps doctors make decisions but does not replace their judgment. The AMA stresses that AI tools should be made in an honest and clear way to support doctors while cutting down on tasks like paperwork, coding, and billing.
To reach these goals, the AMA created groups like the Center for Digital Health and AI and the Digital Medicine Payment Advisory Group (DMPAG). The DMPAG works to make sure AI tools get the right codes, payments, and coverage, helping bring AI into healthcare billing. Programs like AMA STEPS Forward® give doctors advice on how to use AI, think about ethics, and fit AI into daily work.
Along with AI and workflow updates, cybersecurity has become very important for both payers and providers. Healthcare is often targeted by cyberattacks because patient data is sensitive and healthcare work is critical. A well-known cyberattack on Change Healthcare showed the urgent need for strong IT defenses.
Healthcare groups are now spending a lot on cybersecurity tools to protect patient information and follow federal rules like HIPAA. These investments are necessary not just to stop data breaches but also to keep trust with patients and partners. For many providers and payers, spending on cybersecurity now takes up a large part of their total IT budget, often competing with money needed for AI projects and infrastructure upgrades.
One key area where AI helps is workflow automation. Administrative tasks are still a big challenge for medical office managers, owners, and IT staff, especially in busy outpatient and urgent care centers common in places like Salt Lake City and across the U.S.
AI-driven automation helps make many important processes easier:
Together, these automation tools help practices be more efficient, save money, and improve patient experience. For providers with many patients or in competitive areas like urgent care centers in Salt Lake City, using AI-driven automation is becoming a useful strategy.
The Salt Lake City healthcare market shows how AI adoption affects care in a region with many urgent care providers. Local groups here are ready to use new technologies, helped by good IT infrastructure and more demand for easy, efficient outpatient services after the pandemic.
AI efforts in this area often focus on:
As more groups invest in AI, healthcare systems in Salt Lake City and similar areas may set examples for wider AI use across U.S. healthcare.
Current data shows AI adoption will keep growing among healthcare providers and payers. With IT spending going up steadily, continuing improvements to infrastructure and cybersecurity, alongside workflow automation and AI use, will be important to reach operational goals. Doctors’ growing acceptance of AI supports this trend, as long as tools are used responsibly and ethically.
Providers and payers know that clear return on investment, quick setup, and proven ability to work with existing systems will be key for AI to become widely accepted. Healthcare groups are more likely to adopt AI when it improves workflows, lowers administrative tasks, and better supports patient care.
However, challenges must be handled carefully. Rules, cost control, clinical proof, and making sure both providers and patients understand AI will shape AI’s future in healthcare management. The active role of groups like the AMA in guiding AI use helps these technologies grow in ways that benefit both doctors and patients.
For health system leaders, practice owners, and IT staff handling modern healthcare complexities, thoughtful AI use can bring real gains in efficiency and patient engagement. This may help their organizations be stronger in the years ahead.
75% of providers and payers reported increasing their IT spending over the past year, a trend that is expected to continue.
Healthcare organizations are placing a premium on technology, especially advanced solutions like AI, to improve outcomes.
Approximately 15% of providers have an established AI strategy in 2024, up from 5% in 2023.
Providers are prioritizing IT investments in infrastructure, cybersecurity, clinical workflow optimization, data platforms, and interoperability.
Main barriers include regulatory and legal considerations, cost, and accuracy concerns.
Payers are focused on care coordination, utilization management, claims processing, and modernizing their core administrative systems.
Cybersecurity is increasingly important following incidents like the Change Healthcare cyberattack, prompting organizations to strengthen their defenses.
About 25% of payers reported having an established AI strategy in 2024.
Providers face budget challenges and the need for efficient integration of new solutions with existing EHR systems.
The text implies a regional trend where Salt Lake City’s urgent cares may be quick to adopt AI due to these emerging investment priorities and technologies.
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