2024 in Focus: Lyric’s Leaders Share Predictions on Trend, Challenges, and Opportunities in AI-Driven Healthcare

As we step into 2024, a pivotal year for healthcare technology, Lyric's visionary leaders offer their expert insights. This blog delves into the transformative potential of key areas for healthcare, including AI, cybersecurity, regulation, patient-centric care, and more—seen through the eyes of those at the forefront of the industry. Join us in exploring these authoritative predictions, each a beacon guiding the future of healthcare, with Lyric leading the charge towards a revolution in health and well-being.

These perceptive prognostications, while not official statements or guidance from Lyric, are valuable insights to help readers better understand and measure planning and direction in our evolving world of healthcare technology.

Akshay Sharma, Chief AI Officer

"This year I foresee healthcare significantly embracing the Co-pilot concept, kicking off a revolution in efficiency applications. The gradual adoption of this technology will be a game-changer, providing a substantial competitive advantage to early adopters by revolutionizing healthcare workflows.

Small Language Models (SLMs) with 7B parameters will redefine productivity, safety, and personalization in market and product development. This will provide new competitive advantages for companies using first-party data. A specialized set of SLMs will be developed for specific tasks, laying the groundwork for building the future's multi-agent systems.

Furthermore, the shift towards private Large Language Models (LLMs) and strong intellectual property protection is expected to be more pronounced, as companies increasingly value private data as a strategic asset. Finally, I see AI ushing in a transformative humanist era in healthcare, minimizing information asymmetry and enabling a deeper focus on patient-centered care and human interaction. These developments will be the beginning of a significant long-term shift towards more efficient, personalized, and human-centric healthcare delivery.

In this context, organizations must proactively adapt to these technological advancements. Investing in training and infrastructure to integrate Co-pilot technologies and SLMs will be crucial. Emphasizing data privacy and developing strategies for leveraging AI in claims-related processes for healthcare stakeholders, will also be key areas for growth and innovation in 2024."

Tawfiq Bajjali, General Manager, Platform Solutions

"I see 2024 as a year where AI-powered capabilities will make significant inroads to automating administrative tasks in healthcare. Clinicians' growing familiarity with AI tools like ChatGPT will likely catalyze this trend, paving the way for broader adoption and integration of AI in clinical and administrative workflows.

Additionally, AI will bring a new level of sophistication to provider contract and network management, enhancing operational efficiency and member experiences through streamlined communications and cost reductions. These advancements herald a transformative year for AI in healthcare, not just in enhancing operations but also in improving patient care and provider experiences.

Healthcare organizations should prioritize the integration of AI in their systems. This includes exploring AI solutions for administrative automation and investing in AI-driven tools for provider management. Collaborations with technology providers to customize AI applications for specific healthcare needs will also be vital. Overall, 2024 will be a year where AI becomes more deeply embedded in the healthcare ecosystem, offering significant opportunities for efficiency and enhanced care delivery."

Kevin Heineman, Vice President, Corporate IT

"Look for the next 12 months to have a more challenging digital threat landscape with the rise of AI-driven cyber threats. The sophistication of these threats, leveraging AI, will transform traditional cybersecurity strategies, necessitating a shift towards more dynamic and comprehensive security measures.

Additionally, the collaboration between CISOs, IT security professionals, and business units in securing AI business processes will be more critical than ever. This will involve creating AI systems with inherent security features and moving beyond restrictive policies to embrace inclusive, proactive security strategies that can adapt to the evolving digital threat landscape.

In response to these challenges, organizations should focus on enhancing their cybersecurity infrastructure, investing in advanced threat detection and response systems. Training employees in cybersecurity best practices and the implications of AI in digital security will also be essential. As we navigate through 2024, it's clear that a proactive, informed approach to cybersecurity, especially in AI-related areas, will be crucial for safeguarding digital assets and maintaining trust in technology-led processes."

Jan Sbarbaro, Chief Legal Officer and General Counsel

"This year will continue to bring additional regulation, as more states pass data privacy and related AI compliance laws. The state-federal framework of laws impacting the same data will continue complicating the national provision of services.”

Next, in the realm of intellectual property, the human authorship requirement in U.S. copyright law likely will continue to limit copyright protection in AI-generated works. The Copyright Office affirmed in 2023 that copyright requires “human creativity.” AI outputs alone lack this essential creativity required under U.S. copyright law.

We also are likely to see at least one key 2024 court order issued in an AI-based copyright lawsuit. The ruling will refine the guidelines for what is permissible in using third-party content.

In response to these anticipated events, in-house legal departments will need to continue to monitor their compliance frameworks and adjust to new legal developments.”

Theresa Gregorio, Vice President, Customer Success

"As we progress into 2024, the need for companies to align with trusted partners in navigating the AI landscape will become increasingly apparent. This partnership approach will focus not only on technological expertise but also on strategic planning and effective communication to help manage the opportunities brought forth by AI advancements.

Additionally, the evolution of customer experience will take center stage, with a greater emphasis on blending innovation, personalization, and technology to create impactful customer journeys. I also see the pace and nature of change in customer success accelerating significantly, with adaptability, allyship, emotional intelligence, and strategic foresight as crucial “drivers” for continuous improvement and enhancing customer relationships. Companies who want to capitalize on these trends should focus on training and skill development opportunities to enhance and scale these drivers.

I also see leading organizations, especially in healthcare technology, investing in helping customer support professionals and teams to increase technical and data literacy. It pays large dividends in better understanding customer needs, troubleshooting issues, as well as in gaining better insights to behaviors, preferences, and pain points."

Jeff Fix, Chief Human Resources Officer

"Watch for cross-functional collaboration and organizational growth to be key areas of focus in healthcare technology. Emphasizing decision rights, roles, and responsibilities will be essential in driving innovation and growth across various departments. This approach is crucial for fostering an environment where ideas can freely flow and be implemented effectively.

Another area I expect to see greater emphasis on is behavioral alignment, as companies strive to align their strategy, leadership, and culture. This alignment is necessary to create an environment where employees feel empowered to think creatively and act entrepreneurially. In that same thought, I also believe that as change is more accepted and welcomed by C-suite leaders, they will increasingly embrace change leadership over reactionary change management. Both are important, but the visionary and transformative nature of the former will be especially important for companies to stay ahead in a rapidly evolving and competitive business landscape.

In addition to these focuses, the importance of a positive and engaging employee experience cannot be overstated. In 2024, leading organizations will re-evaluate and enhance their Employee Value Proposition (EVP) to attract and retain top talent. This will involve creating a work environment that not only meets but exceeds employee expectations, fostering a culture of engagement, innovation, and long-term loyalty."

Brian Berkowitz, Vice President, Strategy & Corporate Development

“First, 2024 will see the acceleration of precision medicine, especially across specialty pharmacy and testing. This advancement, particularly in genetic testing which has grown from 10,000 unique products in 2012 to over 175,000 today, promises improved care and outcomes. However, with this complexity comes the challenge of maintaining payment integrity in claims management. Health plans will increase focus on genetic tests and related claims backed by evidence and coding rules that seek to support best practices, reduce waste and abuse, enhance administrative efficiency, while also strengthening payer-provider relationships.

Another trend I anticipate is in the realm of healthcare tech startups. Difficult fundraising environments will drive early-stage and startup healthcare tech companies to grow through alignment with market leaders with larger, loyal customer bases. The market has been inundated with point solutions, leading to an unsustainable complexity for payers and providers. This year, we expect a shift towards integrated platform offerings, which offer administrative efficiency and savings with reduced cost to entry. Startups, particularly those in the health plan space, will need to focus on strategic partnerships and leveraging existing customer bases to shorten the buying cycle.

Regarding mergers and acquisitions, health plan M&A activity will be on the rise—watch for unique plays. Post a cooling-off period due to antitrust concerns, we anticipate diverse forms of M&A activities, such as interest from retail buyers or consolidation among regional players. Companies engaged with health plans should prepare for potential disruptions and ensure they have sufficient cash runways to protect their business during these consolidations.

Lastly, this year will begin to flesh out the promise of value-based care and the effectiveness of "Payviders." The industry's pursuit of more aligned risk-sharing models will spotlight trends like the creation of Risant - Kaiser Permanente's value-based platform - and the growing interest in Payvider models. Time will tell if these represent true game changers or simply repackaged versions of existing models.

Charting the Course: Healthcare Tech's Journey into 2024

As we reflect on Lyric leaders’ insights for 2024, it’s evident that the healthcare technology sector is on the brink of a transformative shift. This year is poised to be a milestone, marked by advancements in AI-driven efficiencies, the complexity of data privacy, and significant changes in health plan strategies. The integration of advanced technology in healthcare, coupled with the evolving landscape of data privacy and compliance, indicates a year full of strategic challenges and opportunities.

The industry is also navigating through a phase of heightened cybersecurity concerns and evolving customer success models, highlighting the multifaceted challenges faced by healthcare technology companies. The anticipated rise in mergers and acquisitions, and the focus on innovative healthcare delivery models, further underlines the dynamic nature of the sector. This year, more than ever, emphasizes the need for visionary leadership and adaptive strategies to successfully navigate these changes.