Rankings, Rules, and Real-World Applications

Unpacking How AI is Changing Healthcare

This Week in Health AI #6 | Subscribe

Greetings from Dallas, where the weather has finally dropped below 50 degrees as we head into the last few weeks of the year. We’ve spent this week considering the implications of the incoming Trump administration’s shift to a “market-driven” approach to healthcare regulation and undoing Biden era policies. Worth reading PwC’s report from last week.

Today We’re Covering:

Ranking AI Models in Healthcare
Top health systems are launching a public AI leaderboard to help hospitals evaluate and compare tools from major players like Google and Microsoft.

ICYMI: CMS’s Final Rule for 2025
Key updates include cutting reimbursements, new population health codes, and tentative steps into digital health with DMHT reimbursement.

Challenges in AI Assurance Labs
CHAI explores how to make AI validation scalable and equitable, but questions about funding and conflict of interest remain.

Presbyterian Healthcare’s AI Bet
A new RhythmX AI partnership pilots generative AI copilots to ease primary care burdens and boost workflow efficiency.

And a Few Thoughts About

  • Forward Health’s Closure: What it says about venture-backed healthcare models.

  • Oracle’s New EHR System: Voice-driven and AI-powered, prepping for a 2025 launch.

  • WashU & BJC Health’s AI Center: Training the next generation of clinicians with AI-focused innovation.

Collaborative Push to Rank AI Models in Healthcare

Leading health systems, including Mass General Brigham (MGB), Emory Healthcare, and others, have formed the Healthcare AI Challenge Collaborative to evaluate and publicly rank AI tools from tech giants like Google, Microsoft, Amazon, and OpenAI. The goal is to help healthcare providers make informed purchasing decisions by directly comparing AI tools' performance in clinical simulations.

Key Takeaways

  • Problem: Healthcare providers struggle to assess and compare AI tools due to a lack of standardized evaluation metrics. Current methods rely on anecdotal evidence or user surveys.

  • Solution: The Collaborative will test nine AI models in areas such as diagnostic accuracy, report readability, and differential diagnosis generation. Results will be released as a public "leaderboard" by year-end.

  • Participants: MGB is joined by Emory, the University of Washington, the University of Wisconsin, and the American College of Radiology. More participants may join.

  • Potential Impact: Transparent rankings could democratize access to AI insights, particularly benefiting smaller, resource-constrained systems that lack the capacity for independent testing.

Why This Matters

The surge in healthcare AI tools has created an urgent need for reliable evaluation methods, and initiatives like the Healthcare AI Challenge Collaborative and the Coalition for Health AI (CHAI) are tackling this challenge from complementary angles. While CHAI focuses on establishing national assurance labs to independently validate AI tools and ensure safety, efficacy, and equity, the Healthcare AI Challenge provides a real-world testing ground where clinicians assess tools directly through simulated use cases, producing public rankings to guide purchasing decisions.

This dual approach—CHAI's structured, regulatory-centric model and the Collaborative’s hands-on evaluation and feedback—reflects the necessary chaos of navigating a new and fast-moving field. It’s crucial because the healthcare market is still grappling with a lack of standardization in AI performance metrics, and these efforts offer distinct, yet interconnected solutions. The Collaborative’s clinician-driven feedback loops aim to benchmark utility in clinical practice, while CHAI’s framework is more foundational, working toward long-term governance and assurance.

The novelty of these tools and the fragmented evaluation landscape underscore why such experiments are needed. Both efforts highlight a broader truth: while chaotic, this era of trial and exploration is essential for shaping the responsible adoption and meaningful application of AI in Full Article | Read The Announcement

A Quick Aside: CMS's Final Rule for 2025

Each year, the Centers for Medicare & Medicaid Services (CMS) outlines payment rates, quality measures, and program changes for Medicare and Medicaid for the upcoming year. Officially, it’s the Medicare Physician Fee Schedule (MPFS) and Quality Payment Program (QPP) Final Rule, though it’s often shortened to the CMS Final Rule for simplicity. It sets the stage for how healthcare providers are reimbursed, shaping incentives and financial strategies for hospitals, physicians, and other healthcare entities.

Many use the rule as a signal towards the federal government’s priorities in healthcare, particularly in areas like cost containment, value-based care, and innovation. By adjusting reimbursements, introducing new codes, or enabling reimbursement for novel care models like digital health, CMS directly influences how care is delivered and how providers adapt to evolving patient needs.

Here are some takeaways from the recently released CMS Final Rule for 2025:

  1. Downward Pressure on Fee Schedule Reimbursements

    CMS is maintaining its push toward value-based care, steadily compressing fee-for-service rates to control costs while nudging providers into shared savings programs and alternative payment models​​. Medical providers are looking at an overall 2.83% decrease in reimbursement.

    However, these decreases are not uniform — areas like clinical social workers, clinical psychologists, and anesthesiologists are getting increases while interventional radiology, vascular surgery, and diagnostic testing are getting the largest decreases.

  2. Expanded Care Management Billing Codes

    New capitated payment models and broader care management codes reflect CMS's interest in fostering innovative, non-visit-based care approaches, including behavioral health and community health integration​​.

    • Community Health Integration (CHI) Services: These codes cover services addressing health-related social needs, such as:

      • Caregiver training

      • Social determinants of health risk assessments

      • Community health integration

    • Behavioral Health Integration (BHI) Services: Codes for BHI services facilitate the integration of behavioral health care into primary care settings, promoting holistic patient management.

    • Chronic Care Management (CCM) Services: CMS is simplifying and expanding the use of Chronic Care Management (CCM) codes by introducing Advanced Primary Care Management (APCM) codes, enabling more precise billing and emphasizing comprehensive, coordinated care for patients with chronic conditions.

  3. Dipping the Toe Into Digital Health

    CMS is cautiously incorporating digital health technologies into mainstream care:

    • Digital Mental Health Technologies (DMHTs): New reimbursement codes have been introduced for DMHTs, recognizing their role in mental health care.

    • Telehealth Services: While certain telehealth flexibilities remain, CMS has extended remote direct supervision flexibilities through December 31, 2025, allowing physicians to supervise auxiliary personnel remotely using real-time audio and visual telecommunications. Additionally, while the telehealth flexibilities for patient visits are set to expire, there are indications that Congress may extend the waiver for another two years, as stakeholders continue to advocate for maintaining access to virtual care.

Our Takeaway

The trend is clear: CMS is continuing to signal a shift away from traditional fee-for-service services and towards more novel ways of supporting patient care. The agency’s embrace of capitated codes, digital health reimbursements, and broader population health measures shows its willingness to explore cost-effective care models that can address access disparities, particularly in rural and underserved areas as those populations continue to lose access to medical services.

That said, this openness to innovation raises other questions. CMS moves slow, and while the inclusion of DMHTs represent progress, it’s highly likely we see major innovations in virtual semi-synchronous care using AI in the next few years that is not considered in our current payment methodologies. As digital and AI-driven tools evolve, how will CMS try to respond, given that any helpful regulatory frameworks are unlikely to appear under a Trump administration. More On The Final Rule Here

Challenges in Building a National AI Assurance Network

At the Coalition for Health AI’s (CHAI) Global Summit, stakeholders explored the framework for a national network of AI assurance labs, intended to evaluate healthcare algorithms for safety, bias, and performance. These labs aim to serve a wide range of use cases, from pre-FDA validation to algorithm testing for health systems, but key questions remain unresolved about funding, scope, and equity of access. Participants also discussed the potential for a national registry of validated AI tools to reduce redundancy and promote shared standards.

Key Takeaways

  1. Primary Use Cases: Assurance labs could validate algorithms for vendors prior to FDA review or for health systems evaluating tools for deployment, but funding models remain contentious. Options include vendor-paid validation, buyer-paid testing, or shared costs.

  2. Addressing Equity: Concerns about accessibility for small and rural health systems were raised, with ideas floated to streamline engagement and share validation responsibilities across better-resourced institutions.

  3. Scope and Specialization: Labs will need to balance broad coverage of AI types with deep expertise in specific models, raising sustainability concerns for labs focused on niche technologies.

  4. Conflict of Interest: Transparency requirements will need to address potential bias, particularly if larger institutions validate their own or competitors’ technologies.

  5. Pooling Resources: There is potential to reduce inefficiencies if health systems collaborate on evaluations, but concerns about intellectual property and competitive dynamics complicate such efforts.

Why This Matters

With the flood of healthcare AI tools entering the market, it’s vital to have CHAI’s network of independent assurance labs to help healthcare providers and systems compare tools and to build trust amongst the larger ecosystem. CHAI’s task is daunting. Among the key hurdles: defining who pays for validation, balancing thorough testing with financial sustainability, and ensuring a clear definition of ‘independence’ to avoid bad actors tipping the scales.

Our perspective: perfection shouldn’t be the goal. CHAI’s priority should be to get these assurance labs operational, showing the healthcare ecosystem that even a foundational evaluation system can offer meaningful insights. By providing tangible tools to evaluate the burgeoning AI marketplace, CHAI can create momentum, fostering innovation while helping providers make more informed decisions about the tools they adopt. Full Article

Presbyterian Partners with RhythmX AI to Ease Primary Care Burdens

 Presbyterian Healthcare Services has partnered with RhythmX AI to deploy a generative AI platform aimed at reducing the administrative and cognitive burdens on primary care clinicians. The pilot project will launch in December, utilizing AI copilots to assist with clinical decision-making, risk stratification, and patient care orchestration, ultimately hoping to streamline workflows and improve patient outcomes.

Key Takeaways:

  1. Primary Care AI Copilots: RhythmX AI’s platform integrates with EHR and payer data to provide clinicians with predictive insights and patient-specific recommendations for holistic care, reducing the time spent on manual chart reviews.

  2. Pilot Program Launch: Presbyterian will test the platform in select primary care clinics, focusing on improving clinician efficiency, patient outcomes, and access to care in rural New Mexico.

  3. AI-Driven Collaboration: The health system and RhythmX AI are tailoring the platform to address specific clinical needs and workflows, emphasizing clinician input and on-the-ground observation to optimize usability.

  4. Expanding Reach: RhythmX AI plans to partner with up to 15 health systems by 2025, leveraging its extensive data assets and the backing of SAIGroup to scale its generative AI solutions.

Why This Matters

Presbyterian Healthcare’s partnership with RhythmX AI underscores a growing trend in healthcare AI announcements: health systems are seeking pragmatic applications of AI to address immediate, tangible challenges, like reducing bedside workflow burdens and supporting clinicians in their day-to-day tasks. These efforts focus less on futuristic promises and more on delivering real-world improvements where they’re needed most.

What’s particularly striking is the diversity of vendors securing hospital agreements—reflecting a market still in its exploratory phase. Not only does this highlight the absence of a dominant AI player, but it also shows how health systems are stepping outside their traditional EHR relationships to pursue innovative solutions. This variety is a positive sign, as it fosters experimentation and allows the industry to test different tools and strategies, helping to shape a more practical and sustainable future for AI in healthcare. Full Article

Other Things Worth Checking Out

Here are some other developments that might be worth your time.

What happened at Forward Health? - Forward Health, a subscription-based, cash-pay primary care startup, (in)famous for healthcare "CarePods" has shut down abruptly, highlighting the challenges of blending high-tech innovation with brick-and-mortar operations in a venture-backed healthcare model. Chrissy Farr's blog is worth a read, arguing that Forward’s closure underscores the difficulties of building sustainable primary care businesses for affluent but healthy populations, while exploring more promising model in the evolving healthcare landscape.

A look at Oracle's new EHR system - Oracle Health's new AI-powered EHR platform is designed to streamline clinician workflows with intuitive features like voice commands and personalized interfaces, moving away from traditional menu-based systems. Built independently of Cerner's legacy platform, it emphasizes AI integration from the ground up and aims to make transitions seamless for current Cerner users while preparing for a 2025 early-adopter program launch.

WashU Medicine, BJC Health System launch Center for Health AI - Washington University School of Medicine and BJC Health System have launched the Center for Health AI, a collaborative initiative focused on leveraging artificial intelligence to enhance patient care and streamline healthcare operations. By integrating AI tools into workflows, the center aims to reduce administrative burdens, improve diagnostic precision, and provide training for the next generation of healthcare professionals, marking a significant step toward AI-driven transformation in healthcare.

That’s it for now. We’ll catch up again next week.

-Patrick

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