How is AI affecting practice finances?

Most of the conversation about artificial intelligence in health care has centered on the exam room: diagnostic tools, ambient scribes that draft clinical notes, and algorithms that flag at-risk patients. But some of AI’s most immediate effects are showing up somewhere physicians hear less about: the business side of the practice.

From front-desk scheduling to the back-office revenue cycle, AI tools are changing how practices get paid, how they manage costs and how they plan for the future. Automated coding and claims scrubbing promise fewer denials and faster reimbursement. Predictive analytics can forecast cash flow, spot underpayments and point to where revenue is leaking. And AI-driven prior authorization and documentation tools aim to cut the administrative hours that eat into already thin margins.

These tools also bring new costs and risks. Practices need to weigh subscription fees against real returns, think about how staffing roles will shift, and keep an eye on payers, who are using AI of their own to review and deny claims.

For physician owners and practice leaders, understanding these financial effects is quickly becoming as important as understanding the clinical ones. Medical Economics spoke with Amanda Sharp, CEO of AdvancedMD, to learn more.