Moving into 2025, the healthcare industry's adaption of AI technology continues to grow as provider organizations search for solutions to alleviate provider burnout and enhance efficiencies. As discussed in our previous blog post, implementing AI scribe technology is no longer just optimal, it’s essential, and health system leaders are answering the call in a big way, as indicated by two trends:
- Over the past six months, our scan of publicly available RFPs related to AI use cases in health systems revealed that approximately 60% were focused on evaluating and selecting AI scribe vendors.
- A significant number of our CIO clients are conducting time-limited pilots to assess the capabilities of various vendors in the market.
To support their decision-making, healthcare executives can use a structured framework to calculate the ROI on their AI scribe initiatives. By reviewing the value proposition of each solution using the three categories below, leaders can better navigate the rapidly evolving vendor landscape to identify which market solution will be the best fit for their business.
Category One: Turnover Rate Reduction
Most vendors focus their value proposition on their ability to reduce provider turnover due to documentation-related burnout. The table below highlights the various approaches that market vendors are utilizing to showcase the impact of their respective products on generating time savings and addressing physician turnover.
Category Two: Coding Accuracy
Asking physicians to be coding experts who can ensure their visits are properly coded is unrealistic. Hence, the use of expert coders. However, coders are not in the room with the patient and provider, meaning their analysis and review of the appropriate codes to be used are only as good as the provider's documentation in the EHR.
Therein lies the value of a "coding aware" AI scribe. These AI solutions, which have built-in CDI and coding awareness, can capture the details of the encounter and select the appropriate ICD, HCC, E&M, or DRG codes based on every nuance of the visit. And with a cost-savings opportunity of nearly $44 per claim, the benefits can add up quickly.
Many organizations miss out on revenue due to the inability to accurately capture the appropriate codes. In a primary care setting, where E&M coding and smoking cessation add-on code capture are the primary means of increasing revenue, the opportunity is approximately $7,000 per physician annually.¹ Additionally, under a value-based arrangement, capturing patient complexity through proper HCC coding is critical to optimizing revenue.
As such, AI scribes optimize both clinical care and financial performance by ensuring accurate, real-time documentation that aligns with proper coding. This not only drives revenue growth but also allows physicians to focus on patient care. As healthcare moves toward value-based models, AI-driven documentation tools will be key to unlocking potential revenue, reducing compliance risks, and supporting long-term practice success.
Category Three: Productivity Improvement
All AI scribe vendors tote their ability to give providers some amount of time back in their day to focus on patient care and reduce after-hours documentation time. It will be up to health system leaders to respect that time and temper expectations of increased productivity—not every hour saved can, or should, be converted to direct patient care. With that said, some providers may choose to add a patient visit to the schedule, and the value for those who do can be an increase of $17,000 in revenue per year.²
Differentiating the Vendor Value Proposition
AI scribes that can directly impact documentation time, coding accuracy, and productivity will generate the most value for an organization. Executive leadership should consider evaluating each potential vendor’s value calculation to ensure it is aligned with operational and reimbursement realities. To do so, we recommend building ROI calculators at the specialty level for the greatest accuracy.
Finally, no value will be generated if the tool is not adopted widely throughout the provider enterprise. In addition to using the framework described herein, organizations should assess each vendor’s tool via day-in-the-life testing among providers and monitor adoption rates to further discern potential value in real time.
Edited by Emily Johnson
¹ Assumes $2.50 incremental revenue per E&M visit and a 5 percentage point increase in smoking cessation add-on code capture for 17 patients per day with 60% E&M visits, 4 days per week, and 46 weeks per year.
² Assumes one additional follow-up visit per day at $93 revenue per visit, using 4 days per week and 46 weeks per year.
Published February 18, 2025
