The Healthcare AI Policy Moment: What We Must Get Right
The pressure driving healthcare AI adoption has two interconnected roots. The first is clinical: an aging population, rising chronic disease prevalence, and increasingly complex therapies are compounding demand on health systems at the same time that primary care and nursing shortages are limiting capacity. The second is financial: labor represents 50 to 70 percent of total operating cost for most health systems, and those costs are growing faster than revenue. These pressures are not independent—clinical complexity directly amplifies the labor cost crisis, and workforce shortages and reimbursement challenges make the financial pressure harder to absorb.