Insights from a leading health system strategist

The healthcare industry is undergoing a seismic shift, driven by the uncharacteristically rapid adoption of artificial intelligence (AI) and other advanced technologies. We sat down at the recent Becker’s Healthcare CEO + CFO Roundtable with Dan Liljenquist, chief strategy officer at Intermountain Health, to get his take on what’s to come in revenue cycle management. He shared his perspective on how AI is reshaping provider operations, patient experiences and the future of healthcare delivery.

Intermountain Health is a large integrated delivery system headquartered in Salt Lake City, operating in six states. Some 68,000 Intermountain Health employees provide care at 30 hospitals and more than 400 clinics, supported by a large system-owned health plan. This sizeable network provides a unique vantage point for observing industry trends and implementing innovative solutions.

AI adoption accelerates across healthcare

Historically speaking, healthcare has been cautious in adopting new technologies. With AI, however, Liljenquist notes a dramatic change.

“Healthcare is actually one of the fastest adopters of AI,” said Liljenquist. “The whole industry is in flux, and we have this massive demographic shift that we’re seeing as a society. At the same time, clinician burnout is at an all-time high. AI gives us some interesting new tools to help us simplify the work that needs to occur for our patients.”

Intermountain Health is at the forefront of AI transformation, with about 300 different programs underway, and nearly all its technology vendors leveraging some form of AI, according to Liljenquist. He describes AI technology adoption as a tailwind for the industry rather than a headwind, and one that signals a period of accelerated progress.

Streamlining operations and reducing costs

One of the most immediate impacts of AI is streamlining administrative tasks, with claim denials providing a prime example of combining agentic and generative AI with analytics and automation to create more seamless, efficient workflows.

“We are talking about cutting 30 minutes off each appeal letter we have to prepare for a payer because of our ability to use AI to scrape through the medical record and get the right information we need,” Liljenquist said. “And again, that’s just one of dozens and dozens of different uses that are just making our jobs simpler and easier to do.”

Healthcare providers in the U.S. spend approximately $740 billion annually on back office and administrative work. According to Liljenquist, there are four main areas where artificial intelligence is expected to make a significant impact on driving down costs. First and foremost is the revenue cycle, which involves many repetitive manual tasks well-suited for rules-based AI solutions. Liljenquist notes that organizations adopting these new capabilities anticipate that the cost to collect will decrease substantially as a result.

Additional domains poised for AI-driven transformation include analytics, call centers and supply chain management. Liljenquist emphasizes that repetitive, rules-based tasks like those in these areas present prime opportunities for AI to drive progress.

Preparing for the future of patient care

The implications of AI extend beyond operations to the very practice of medicine. Liljenquist points out a looming workforce challenge about to hit home that has no fast or easy fix.

“Over the next five years, a quarter of our clinical providers in the United States are going to enter retirement,” said Liljenquist. “By 2040 or 2035, 40% of those providers will be gone right at a time when the aging population sends demand for healthcare services skyrocketing. So, we need to change the practice of medicine to accommodate all that.”

Liljenquist envisions AI eventually playing a critical role in patient care, especially in areas like medication management. He says Intermountain Health is excited about finding new ways to be much more situationally aware with patients, such as helping them get to the right stable medication doses and not requiring them to return to a facility with every tweak in their medication.

Collaboration and governance

As the AI adoption boom builds, Liljenquist sees value in partnering with both established vendors and innovative newcomers, but he emphasizes the importance of thoughtful governance and collaboration for any organization adopting AI.

“Our board and our C-suite, we’ve been very thoughtful about AI governance,” said Liljenquist. “We have dozens of different projects coming through our governance process each month, depending on the level of risk that escalates all the way up into our board conversations. We work with partners in ways where we clearly understand their business model and they understand ours, and that’s helped to accelerate what we’re doing.”

A mission-driven approach

As the healthcare revenue cycle goes through this period of AI-driven transformation, leaders like Dan Liljenquist and organizations like Intermountain Health are demonstrating how AI can be harnessed to create a more efficient, effective and patient-centered future. Ultimately, Liljenquist frames AI adoption as an integral and important part of Intermountain Health’s mission.

“We see AI as a way to extend what we’re doing in very low-cost ways to better meet the needs of our community, to be proactive for them, to simplify their experience and to help us partner with them better across the course of their lives,” Liljenquist said. “And that’s our mission, to help people live the healthiest lives possible.”