Module 5 - Milestone 2 - Artificial Intelligence Revenue Maximization in the Healthcare Industry

Edna Ejimakor

Nexford University

AIA 6600 Artificial Intelligence

Professor Nicholas Bucciarelli

December 9, 2022
To: The Executive Partners, Midwest Cardiology Institute

From: Edna Ejimakor (Chief Technology Officer, Midwest Cardiology Institute)

Date: December 5, 2022

Subject: Artificial Intelligence Revenue Maximization in the Healthcare Industry

Executive Summary

Implementing artificial intelligence (AI) in the healthcare industry will add value to both patients

and doctors. It will minimize both hospitals and patients’ costs, reduce inefficiencies in processing and

retrieving patients’ records, carry out tests on patients and predict their outcomes in the shortest possible

time, and can assist in surgery, reducing patients’ hospital stay and patients’ trauma.

The implementation of AI will also increase revenue for the institute. Quality healthcare will be

assured as AI robots will assist in surgical operations. Affordable healthcare will be possible as AI

systems can search millions of databases and suggest the best alternative for patients’ given their budget.

This will inspire trust in the medical world and will change the medical profession for the better.

The use of AI in Midwest Cardiovascular Institute will improve patients’ experience as IT tools

that uses TensorFlow and Image Recognition models and applications will be used in assisting doctors to

diagnose patients’ medical condition correctly, minimizing the error in prescription, and reducing the cost

of a corrective prescription.

Background

The increase in heart disease in America has resulted in many patients with heart health issues.

This large increase in cardiology patients has tasked the cardiology sector of the health care system

beyond its intended resources. There have been calls from many quarters demanding the implementation

of artificial intelligence in the healthcare industry.

 Artificial Intelligence is known for simulating human actions and activities in many areas and

fields. While AI will not replace doctors it can, however, assist physicians to make better clinical

decisions in certain functional areas of healthcare. This will assist Midwest Cardiology Institute in its

quest to combat the increasing heart disease facing the nation. The increasing availability of healthcare

data and the speedy development of big data analytic methods have made feasible successful applications

of AI in healthcare. Powerful AI techniques, aided by appropriate clinical questions, can expose clinically

relevant information buried in the massive amount of data which can assist clinical decision-making.

(Jiang et al., 2017)

Revenue maximization

We shall now propose a workable solution to resolve the implementation of AI in the healthcare

industry with a view to combating the growing heart diseases and maximizing revenue and profits at the

Midwest Cardiology Institute.

Provide quality customer service to boost patients’ satisfaction: Satisfaction is what every

consumer buys. The same is true of healthcare services. A satisfied patient will likely repeat a visit to the

hospital that provided such excellent services in the future. Revenue increases and higher profit margins

are linked to higher patient satisfaction. According to Sampson (2016), American hospitals that gave

superior patient experience gained a 50% higher net margin than those that gave an average customer

experience. Implementing AI technology in treating heart conditions, especially during surgeries can help

minimize blood loss and reduce patient trauma.

Reduce readmissions: Admittedly the cost of medical treatment can be high. And while frequent

admission could lead to higher revenue from patients, that would not be sustainable. When hospitals

reduce patients’ admissions and hospital stays, they would not get penalized by Centers for Medicaid and

Medicare Services because these readmissions are preventable. (Sampson, 2016) Applying AI would be

an efficient way to reduce both hospital stays and readmission by using data-driven changes and effective

follow-up care.
 Reduce unnecessary testing: Although tests conducted on patients can help to ascertain a

medical condition, some of these are expensive and reduce hospital profit. Sampson (2016) reported that

redundant testing alone has been estimated to waste up to $5 billion each year in the United States.

Though some patients may insist that tests be conducted on them, many of these are unnecessary if there

is improved communication between doctors and patients. Also, implementing an AI laboratory expert

system can help reduce test volume by up to 11% and can save the hospital more than $150,000 annually.

(Sampson, 2016)

Understand revenue cycle performance: For improved revenue and profit, a hospital should

understand its revenue cycles and identify opportunities to explore and weaknesses to work on. This will

enable it to allocate funds and resources where they are really needed rather than wasting funds. Also,

using AI revenue analysis can help hospitals identify bottlenecks in the system. The use of graphs, charts,

or dashboards can assist hospital management to optimize the revenue cycle and report key performance

indicators used in monitoring transactions. (Sampson, 2016)

Invest in health IT systems to monitor utilization: Another way hospitals can improve profits

and run efficiently is by using effective technologies. Clinical decision support systems are being used by

hospitals to accomplish good financial results. When IT systems are used effectively, errors in

prescriptions are minimized and fewer funds are spent on corrective prescriptions. (Sampson, 2016)

TensorFlow Application

According to Serdar Yegulalp (2018), TensorFlow is a Python-friendly open-source library used

for numerical computation that makes machine learning and developing neural networks faster and

easier. TensorFlow can bundle together both machine learning and deep learning models and algorithms

and makes them effective by means of common programmatic metaphors. It uses Python (for example) to

provide a convenient front-end API for building applications while executing those applications in high-

performance C++. (Serdar Yegulalp, 2018)

 Midwest Cardiovascular Institute can use TensorFlow because it provides an abstraction for

machine learning development. It works behind the scenes to take care of figuring out ways of hitching

an output of a function to the input of another function, leaving the developer to concentrate on the

overall logic of the application.

The use of TensorFlow can help train d train the algorithm of machines used to diagnose

respiratory infections and assist doctors in prescribing the most appropriate medications for each patient.

TensorFlow is used by health practitioners to train a neural network to recognize anatomy from brain

MRIs. Before a marketing budget is spent, a TensorFlow model can be used to estimate the optimal usage

for them thereby improving the patient's overall experience.

Image Recognition

According to Mujtaba (2020), Image recognition refers to technologies that identify places, logos,

people, objects, buildings, and several other variables in digital images. While it is easy for humans to

easily recognized different images, it is not easy for a computer.

A digital image comprises picture elements called pixels. Each pixel has a numeric representation

for intensity or grey level that is finite and discrete. When pictorial data are fed to the computer, it

perceives this image as numerical values of these pixels. To recognize a specific

image, the computer system must recognize patterns and regularities in the numerical data.

Midwest Cardiovascular Institute can use image recognition algorithms to assist in the diagnosis

of heart diseases and other illnesses by deploying image recognition models to scan images from X-ray

equipment. The model can also be used to determine the number and precise locations of tumors within

an image, assisting the medical practitioner in directing his or her focus to the malignant or cancerous

aspects. (McCrea, 2021).

 Recommendations

Implementing Artificial Intelligence is a valuable innovation for Midwest Cardiovascular Institute

as it will boost revenue generation and maximize profit in numerous ways such as saving cost, saving

time, and reducing patients’ readmissions. The use of TensorFlow models, as well as image recognition,

will greatly enhance the efficiency at various health centers and improve patients’ experience. Midwest

Cardiovascular Institute should, therefore, invest in TensorFlow and image recognition algorithms and

applications.
 References

Jiang, F., Jiang, Y., Zhi, H., Dong, Y., Li, H., Ma, S., Wang, Y., Dong, Q., Shen, H., & Wang, Y. (2017).

Artificial intelligence in healthcare: past, present and future. Stroke and Vascular Neurology, 2(4),

230–243. https://doi.org/10.1136/svn-2017-000101

McCrea, O. (2021, August 4). The Role of Image Recognition AI in Medicine - SentiSight.ai.

https://www.sentisight.ai/the-use-of-ai-image-recognition-in-medicine/

Mujtaba, H. (2020, June 15). What is Image Recognition their functions, algorithm and its uses.

GreatLearning. https://www.mygreatlearning.com/blog/image-recognition/

Sampson, C. (2016, May 31). 5 Ways to Increase Hospital Profitability, Aid Revenue Cycle.

RevCycleIntelligence. https://revcycleintelligence.com/news/5-ways-to-increase-hospital-

profitability-aid-revenue-cycle

Serdar Yegulalp. (2018, June 6). What is TensorFlow? The machine learning library explained.

InfoWorld. https://www.infoworld.com/article/3278008/what-is-tensorflow-the-machine-

learning-library-explained.html

Chimaroke Nwaji (July, 2022)