Outsourcing, AI to lower healthcare costs in Canada — McKinsey study

OTTAWA, CANADA — Artificial intelligence (AI) backed by outsourcing will lower healthcare costs in Canada, according to a study by management and consulting firm McKinsey.
According to McKinsey, once AI has been integrated into Canada’s healthcare systems at full scale, then it can lower its net healthcare spending by about 4.5 to 8.0 percent per year, or up to CA$26 billion (US$19.1 billion).
Several healthcare institutions are utilizing AI to streamline operations through the simplification of administrative work, system management, staffing, and many more. This initiative aids nurses and physicians in focusing on delivering high-value patient care.
According to McKinsey, amid the perceptions of AI and its effect on the workforce, medical institutions should build trust and clearly define the role of its staff. Outsourcing is one of the means to achieve this.
“They can then outline potential ways of working together and define the associated roles and responsibilities required to foster the partnership, such as advisory committees, joint ventures, or outsourcing. Leaders will need to invest to track and improve adoption through training and change-management initiatives,” McKinsey stated.
The consulting noted that in the deployment of AI, healthcare systems need to prepare stakeholders through upskilling and digital literacy.
“Successful integration of AI technologies and applications takes a new, more collaborative, coordinated approach to benefit all Canadians,” McKinsey said.