Medicare's AI-Ready Payment Model Shifts Healthcare Economics
Source: TechCrunch
Medicare's new payment structure decouples reimbursement from visit-based care, creating economic incentives for continuous AI monitoring and coordination between appointments. Most health tech companies built toward episodic, human-centered workflows and weren't prepared for this shift. The mechanism matters because it removes the primary friction point for remote patient management: without billing codes, venture capital won't fund it, hospitals won't adopt it, and the infrastructure stalls. This regulatory change unlocks infrastructure that was economically unviable under fee-for-service models. The shift is less about AI capability breakthroughs and more about the administrative layer that determines what actually gets built in healthcare.