Artificial Intelligence is ushering in a new wave of efficiency in healthcare
AI is also transforming procurement—especially within purchased services—by helping health systems simplify the data analysis process and uncover more hidden opportunities for cost savings across categories.
“The reality is that managing and centralizing purchased services, which can include multiple vendors across hundreds of categories, is incredibly complex,” says Les Popiolek, Chief Executive Officer at Valify, a strategic partner of HealthTrust.
“Without understanding exactly where your organization stands on purchased services spend, managing these services in a cost-effective and efficient manner is impossible.”
However, solely having vast amounts of data on purchased services spend is not enough to create change. The emergence of AI-driven spend analytics tools is now providing healthcare systems new ways to gain valuable insights and make well-informed procurement decisions.
Impact of AI
The rapid development of AI, particularly large language models (LLMs) like ChatGPT (from OpenAI), Claude (Anthropic), and Gemini (Google), has catalyzed a new era of innovation in healthcare. These advanced AI models offer new data analytics capabilities that have the potential to revolutionize and simplify operations and procurement decision-making. For context, the journey toward generative AI began in 2017 with publication of the research paper, “Attention Is All You Need,” by a team of scientists at Google. This breakthrough introduced the transformer architecture, which laid the foundation for modern LLMs, which have now been trained on a bulk of the world’s public knowledge and can reason with the level of a graduate student or better. LLMs are evaluated based on two key metrics: parameters and tokens. Parameters represent the model’s size and complexity, while tokens are the units of text it processes. As these metrics increase, so does the model’s capacity and performance quality.
Valify is harnessing this technology to enhance its industry-leading spend categorization and analytics capabilities. “With AI, we are able to expand the power of our analytics to executives and other users who do not use Valify on a daily basis by adding features like AI Spend Insights,” says Rick Mattock, Director, Product Management at Valify.
“This feature uses the power of AI combined with Valify’s categorized spend data to interpret plain language questions and generate concise summarized responses. Users do not have to be experts in Valify to find accurate answers to complex questions.”
And, of upmost importance to our healthcare members, Valify leaders share that it has adopted a secure approach to ensure that AI model providers cannot be trained by client prompts or responses, safeguarding client data from being incorporated into future model versions.
While spend data is key to transforming a hospital’s purchased services program, it is not the only measure of success. With AI, hospitals can more easily extract meaning from their purchased services data, allowing them to better understand the actions required to streamline costs and manage suppliers.
New Capabilities
In the fast-paced healthcare environment, efficiency and accuracy are paramount. Valify’s AI-powered platform, for example, is transforming procurement management by automating detailed spend data and producing concise analyses that highlight trends, comparative analytics and savings opportunities. This enables healthcare systems to rapidly process vast amounts of data, ultimately saving time, reducing costs and improving decision-making.
“We have integrated AI into multiple aspects of Valify’s technology, including user experience, data enrichment and data acquisition, which only deepens our ability to optimize purchased services programs from end to end,” adds Mattock.
“We are advancing Valify’s AI capabilities to deliver unique insights and automated solutions, differentiating the platform from competitors,” adds Mattock. “While data itself is essential, it’s the strategic application of advanced AI that unlocks deeper insights and drives meaningful change for healthcare leaders.”
In addition to offering best-in-class technology, years of expertise and more than $1 trillion in categorized spend data, Valify is at the forefront of developing and integrating advanced AI solutions for health systems.
Transform your organization’s purchased services program with the power of Valify by emailing info@getvalify.com.
