Safety net hospital embraces AI while battling cyberthreats

ARIZONA, UNITED STATES — Phoenix-based Valleywise Health, a safety net hospital serving the community since 1877, is integrating artificial intelligence (AI) to enhance clinical and operational efficiency.
Claire Agnew, executive vice president and CFO of Valleywise Health, stressed the importance of using reliable data to ensure AI delivers accurate and beneficial results in healthcare.
During an interview with Becker’s Healthcare Podcast, Agnew emphasized the importance of collaboration, stating, “Part of the way we look at it in terms of instituting AI is through trusted partners.”
For instance, Valleywise Health is deploying ambient listening technology in clinics to assist physicians with documentation. This tool transcribes conversations during patient visits, reducing administrative burdens and allowing doctors to focus more on patient care.
Automating revenue cycle management
On the operational side, Valleywise is leveraging automation in revenue cycle management to keep pace with payers who are increasingly using AI to review claims and identify denials.
“You’re going to have to up your AI game,” Agnew noted, emphasizing the need for hospitals to adopt advanced tools to counteract payer-driven automation.
This investment ensures timely claims submissions and minimizes revenue disruptions caused by payer policy changes.
Strengthening digital defense in healthcare
Cybersecurity has emerged as a critical focus for Valleywise Health amid rising cyberattacks targeting hospitals and third-party vendors. Agnew described cybersecurity as a vital “cost-avoidance” measure that safeguards financial assets, patient trust, and operational continuity.
“As a safety-net hospital, we don’t have a lot of funds for capital,” Agnew said. “Cybersecurity is an investment in cost-avoidance…with our brand, with our trust with our employees and providers, and our trust in the community.”
Building operational resilience
Valleywise has faced multiple vendor-related breaches in recent years, including the Kronos payroll system attack in 2021 and a Change Healthcare breach earlier this year that disrupted claims processing. These incidents have underscored the importance of disaster recovery planning and vendor diversification.
“We do drills with disaster preparedness and emergency management,” Agnew shared. “Unfortunately, we’ve also had enough incidents that we’ve done these sorts of practices live enough times over the last several years.”
As Valleywise continues to grow after moving into its new state-of-the-art facility earlier this year, leadership remains committed to balancing innovation with resilience.
Investments in AI and cybersecurity are central to ensuring operational efficiency while maintaining patient trust in an increasingly complex healthcare environment.