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Around the nation: White House directs agencies to ramp up AI use


The White House has directed all federal agencies to rapidly scale up their use of artificial intelligence (AI), including for healthcare uses like diagnosis and health insurance eligibility, in today's bite-sized hospital and health industry news from the District of Columbia, Illinois, and Washington. 

  • District of Columbia: Earlier this month, the Office of Management and Budget released a memorandum mandating that federal agencies scale up their use of AI to improve public services and protect civil liberties. The memo requires each federal agency to appoint a chief AI officer within 60 days. These leaders will oversee adoption of the technology and compliance with risk management protocols, as well as work to develop an AI-ready workforce. The memo also outlines "high-impact" AI use cases that will be subjected to increased oversight, including tools used for diagnosis, treatment decisions, health insurance eligibility, and more. Federal agencies have also been directed to prioritize AI tools developed in the United States and to create formal policies for generative AI by 2026. (Diaz, Becker's Health IT, 4/22)
  • Illinois: Lurie Children's Hospital has partnered with Clearway Health to open its first outpatient specialty pharmacy. The pharmacy, which will be on the third floor of the new Lurie Children's Outpatient and Infusion Center, is expected to open in late 2026. The pharmacy will help support pediatric patients with complex medical conditions who cannot access medications at retail pharmacies. It will also help integrate pharmacy services with Lurie Children's care teams and streamline medication management. Some of the services that will be provided by the specialty pharmacy include patient education, treatment monitoring, and assistance with insurance-related processes like prior authorizations. (Murphy, Becker's Hospital Review, 4/22)
  • Washington: Amid financial difficulties, Providence has implemented a hiring freeze for nonclinical roles. In a memo to employees, Providence president and CEO Erik Wexler highlighted several areas of concerns, including low imbursement rates, high labor and supply costs, the impact of the Los Angeles wildfires, and more. "Over the last three months, the economic headwinds have shifted rapidly, forming a perfect storm that threatens our financial sustainability," Wexler said. "We were on track to finally break even this year. But just as we were nearing that goal, the external economic conditions in 2025 took a sudden turn." Aside from the hiring freeze, Providence is also limiting nonessential travel, filing lawsuits against payers for repeated denials, and advocating for state and federal funds. Since Wexler took over as CEO in January, he made several significant changes, including consolidating marketing, strategy, and planning functions and realigning leadership in multiple areas. He also created the office of transformation to focus on technological capabilities that can help reduce administrative burdens. (Hudson, Modern Healthcare, 4/21)

The best AI strategy isn't about AI

AI is essential to healthcare's future, but the key to success isn't a new AI strategy. Instead, we must understand how to use AI to further existing strategies. Use our expert insight to uncover three different ways organizations are approaching AI, and which pitfalls to look out for. 


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