Healthcare accounts for a much larger chunk of the U.S. economy compared to peer nations. A KFF report reveals the United States far exceeds other large and wealthy nations in per capita health spending. In fact, healthcare costs in the United States grow faster than inflation: 

• Inflation growth rate: 3.0% 

• Healthcare costs rate: 7.5% 

According to the KFF report, as of 2023, total U.S. healthcare spending is $ 4.9 trillion, and out-of-pocket spending has reached $1,514 per person. 

With these statistics and surges in costs, it is clear who will feel the most impact: patients and providers. As operational expenses grow, medical practices are looking for more effective ways to deliver high-quality care without breaking the bank.  

This article reveals how technology is a powerful ally in this effort, offering innovative solutions to streamline operations, improve efficiency, and ultimately control expenses.  

We also discuss how implementing the right tools can future-proof your practice, making it more resilient and cost-effective for the long game. 

Embracing Healthcare Cost-saving Technology 

Healthcare cost-saving technology refers to any digital tool or system designed to reduce operational expenses, minimize waste, and improve financial outcomes in a medical setting.  

These technologies range from Artificial Intelligence (AI)-powered tools and practice management software to advanced clinical platforms.  

How much can these technologies save the healthcare industry? A Morgan Stanley report finds: 

• AI holds enormous promise for drug development and could generate healthcare savings between $100 billion and $600 billion by 2050.  

• AI tools are already leading to hospital care savings, which could amount to as much as $900 billion by 2050. 

For providers, foundational tools, such as digital health solutions and secure, cloud-based healthcare systems, are paving the way for a more connected and efficient healthcare ecosystem. By adopting these innovations, practices can automate tasks, enhance patient care, and make data-driven decisions that positively impact their bottom line. 

Leverage Telehealth for Immediate Cost Reductions 

Telehealth offers significant cost savings for both providers and patients. By conducting appointments remotely, practices can drastically cut down on overhead costs associated with maintaining a physical space.  

For instance, fewer in-person visits mean lower expenses for utilities, front-desk staff, and medical supplies. It also results in savings on salary expenses. A study of telehealth consultations for pediatric neurosurgeons showed a saving of $178.28 per visit in provider salary costs.  

Telehealth also improves patient outcomes and adherence, which in turn lowers downstream costs associated with complications, such as ER visits or hospitalizations. However, the benefits extend far beyond overhead.  

Telehealth platforms often lead to fewer no-show appointments, as patients appreciate the convenience of virtual consultations. It also saves them money on travel costs. A JAMA study found the estimated mean total cost savings of using telehealth for cancer patients ranged from $147.4 to $186.1 per visit. 

Telehealth also expands a practice’s reach, allowing providers to connect with patients in rural or underserved areas without the need for additional brick-and-mortar locations.  

For example, the ability to consult with specialists virtually enables rural hospitals to provide a broader range of services without requiring patients to travel to larger hospitals. This is especially critical in areas such as oncology and behavioral health where access to providers is limited, according to the Rural Health Information Hub.  

Streamline Healthcare Workflows with Automation and AI 

Automation and AI are transforming administrative and clinical workflows. The strategic use of AI in healthcare operations can automate repetitive tasks, freeing up valuable time for staff to focus on patient care.  

For instance, AI-powered systems can manage appointment scheduling, send automated patient reminders, and handle initial patient intake forms. This level of automation significantly reduces the administrative burden on your team, thereby minimizing burnout and enhancing overall practice efficiency.  

AI can also assist in clinical settings by analyzing data to identify patterns or pre-sorting information for a provider’s review. This streamlining of processes directly translates to lower operational costs and a more productive work environment. 

Use EHRs and Medical Billing Tools to Eliminate Errors and Waste 

Electronic Health Records (EHRs) are essential for modern medical practices. Well-implemented EHRs yield savings through improved care coordination and reduced administrative waste. How is this possible?  

When a patient’s information is kept in a centralized digital system, it  

• Eliminates duplicate tests 

• Reduces prescribing errors 

• Ensures all providers have access to up-to-date medical histories  

This seamless flow of information prevents costly mistakes and compliance issues and enhances patient safety. On the financial side, automated medical billing tools are critical for optimizing the revenue cycle. These platforms reduce the manual data entry that often leads to costly billing and coding errors and claim denials.  

For instance, automated medical billing software saves time and helps improve clean claim rates by eliminating multiple data entries and human errors. It also offers eligibility checks that instantly verify insurance eligibility in real time, before an appointment, to ensure payment.  

By automating coding and submission processes, practices also ensure accuracy, accelerate payment times, and reduce the staff hours spent chasing claim rejections.  

Utilizing an integrated EHR platform can be your biggest ally in reducing administrative errors and waste. For example, EverHealth offers an all-in-one EHR platform—DrChrono—that combines software and services into an integrated health record and practice management suite.  

The solution features embedded payments, patient engagement, communications, and robust medical billing services, including revenue cycle management. 

Virtual Care Tools That Drive Down Overhead 

Beyond telehealth consultations, other forms of virtual care that are reducing overhead are garnering a lot of attention. Remote patient monitoring (RPM) is a great example. These tools enable providers to track patients’ vital signs and health metrics remotely, typically using devices such as smartwatches, glucometers, and similar remote monitoring devices.  

This allows for proactive intervention before a condition worsens and requires an expensive emergency room visit or hospitalization. This technology is fundamental to preventive care and aligns perfectly with the shift toward value-based care models.  

By keeping patients healthier, happier, and out of the hospital, providers can achieve better outcomes and realize significant reductions in value-based care costs. Here’s how virtual care tools drive down costs: 

For Patients: 

• Fewer hospitalizations and ER visits: By continuously monitoring vital signs, RPM allows providers to intervene before a patient’s condition becomes severe, keeping them out of the hospital. 

• Improved chronic disease management: RPM helps patients manage chronic conditions, reducing the long-term costs associated with these illnesses. For example, one study showed that 74% of adults with resistant hypertension achieved control within one year with Bluetooth monitoring plus pharmacist interactions. 

• Better medication adherence: Patients are more likely to follow their treatment plans when they know their provider is monitoring their progress, which reduces the risk of complications that lead to higher costs.  

For Providers:  

• Reduced no-shows: RPM can lead to fewer missed appointments and cancellations, which improves revenue generation and resource allocation. 

• Increased efficiency: RPM allows for more proactive and data-driven care, potentially reducing the time spent on in-person visits for routine check-ins and freeing up time for more complex cases. 

• Prevention of expensive events: By preventing a single major health event, like a heart attack, RPM can lead to significant overall cost savings for the healthcare system. A study reported that RPM for patients with cardiac disease significantly reduced 30-day readmission rates, resulting in decreased hospital costs. 

FROM ONE OF OUR SOLUTIONS: Telehealth and Chronic Disease Management: Improving Patient Lives Through Virtual Care 

Improve Patient Engagement to Reduce Long-term Costs 

An engaged patient is a healthier patient. One review states that when individuals have a sense of agency in their healthcare, they are more likely to adhere to treatment plans, attend follow-up appointments, and make healthier lifestyle choices.  

Technology offers numerous ways to improve patient engagement and lower costs. Patient portals, secure messaging apps, and educational resources empower patients with the information and tools they need to manage their health effectively. 

For instance, the EverHealth solution Updox offers a HIPAA-compliant healthcare Communications Suite, including tools like secure text messaging, that support integrations with many practice management and EHR platforms. For example, a secure text tool can help engage patients by: 

• Allowing your practice to communicate with them ahead of a visit quickly 

• Easily contacting them with updates 

• Ensuring timely appointment arrivals  

When patients show up, your costs go down. How? Engaged patients are less likely to be no-shows, which helps protect your practice’s revenue. By using automated reminders and providing easy communication channels, you can foster a stronger provider-patient relationship built on trust and collaboration.  

This proactive partnership leads to better long-term health outcomes and, consequently, lower overall healthcare costs for everyone involved. 

Optimize Healthcare Payment Processing for Efficiency 

At the end of the day, your practice is a business, and it depends on efficient billing and collections. Modern healthcare payment processing tools streamline this entire workflow, from generating statements to collecting payments.  

By offering multiple payment options—such as online portal payments, automated payment plans, in-app credit card processing, and digital wallets—practices can make it easier for patients to settle their bills.  

For example, in-app credit card processing allows your practice to collect patient payments directly within the software, simplifying billing and improving cash flow. Your staff can swipe a patient’s card for immediate posting of payment.  

These options provide convenience and significantly reduce the time to payment. Furthermore, automating the collections process minimizes the administrative strain on your staff, allowing them to focus on more patient-facing interactions. 

Building a Cost-efficient, Tech-enabled Future 

You want long-term financial stability, but where do you start? The most effective methods for reducing healthcare costs involve creating a streamlined, tech-enabled practice where administrative tasks are automated, care is proactive, and patients are actively engaged.  

Some key takeaways to consider when reducing costs: 

• Digital tools like AI, telehealth, and EHRs streamline operations, reduce waste, and improve financial outcomes for medical practices. 

• Automating administrative tasks and leveraging AI for data analysis enhances efficiency, reduces staff stress, and lowers operational costs. 

• Integrated EHR platforms and automated billing systems eliminate errors, prevent duplicate tests, and accelerate payment cycles, improving both care quality and revenue. 

• Tools like patient portals and secure messaging foster better communication, reduce no-shows, and encourage healthier behaviors, lowering long-term costs. 

And finally, a cohesive, tech-enabled ecosystem ensures cost savings, improved care quality, and long-term financial stability. This holistic approach ensures that savings are not just a one-time benefit but a sustainable part of your entire operational model. 

FROM ONE OF OUR SOLUTIONS: How AI is Transforming Medical Billing 

Final Thoughts on Tech-driven Healthcare Cost Strategies 

Adopting technology is a necessity for your practice to thrive. The benefits are clear: reduced overhead, improved efficiency, fewer errors, and better patient outcomes.  

By implementing these strategies, you not only control rising expenses but also enhance the quality of care you deliver. It’s important to assess your current systems, identify gaps, and explore how these innovative tools can help build a more financially sound and patient-centered future for your practice. 

Looking for more information on tech-driven healthcare cost strategies? Contact EverHealth today to discover how our comprehensive product ecosystem can empower your practice with innovative solutions that transform your business from end to end. 

FAQs on Reducing Costs Through Technology 

How can technology help reduce healthcare costs? 

Technology streamlines operations, reduces waste, and improves efficiency. Tools like AI, telehealth, EHRs, and automation lower overhead, prevent errors, and enhance patient care. 

What role does AI play in lowering costs? 

AI automates repetitive tasks, analyzes data for better decision-making, and supports clinical workflows, saving time and reducing operational expenses. 

How do EHRs and billing tools improve efficiency? 

EHRs centralize patient data, prevent duplicate tests, and reduce errors. Automated billing tools streamline payment processes, minimize claim denials, and accelerate revenue cycles. 

What’s the key to building a cost-efficient healthcare practice? 

It starts with smart technology. Integrating technologies like telehealth, AI, and EHRs into a cohesive strategy creates a sustainable, cost-effective, and patient-centered healthcare ecosystem.