Key Takeaways:
- While AI has become a standard marketing claim across healthcare IT, not all AI is created equal.
- Vendors are using AI to justify both price increases, leading health systems to need partners to help understand the ROI of specific software modules.
- Competitive sourcing and industry benchmarking data are critical levers to separate marketing from genuine value.
- Pathstone clients have achieved 12% – 35% cost reductions on AI-marketed software tools through structured sourcing and negotiation strategies.
Proliferation of AI Tools in Healthcare:
The healthcare IT vendor market has become saturated with AI claims. As of mid-2025, the FDA had authorized over 950 AI/ML-enabled medical devices for marketing in the U.S., and 94% of healthcare companies report using AI in some capacity. Industry analysts have noted that for many incumbent vendors, AI has become a bolt-on marketing feature rather than a core capability. Therefore, hospital supply chain departments are faced with evaluating whether a software tool’s AI component will deliver differentiated value to the organization, or if the AI buzzword is being used to justify price increases.
AI is already woven into the tools health systems rely on every day, often without recognition. Email platforms suggest language as you type; CRM tools use AI to identify customer segments and drive campaign strategy; clinical platforms embed AI to support imaging reads; GPOs are adding AI to their analytics capabilities; and enterprise technology vendors routinely include AI components aimed at improving productivity or reducing consumption. In short, AI has become table stakes across virtually every category of health system technology.
Observed Vendor AI Marketing & Presentations:
As the healthcare IT space is currently reacting to the proliferation of AI within their software tools, Pathstone Partners has observed changes in the software marketplace. Currently, vendors are often taking one of several contrasting price tactics. Some vendors market AI as an additional value-add which will automate the hospital’s internal workflows and processes, necessitating increased contractual costs. Others pitch AI as automating people processes on the vendor side, reducing their internal resources needed to support their customers. The question is – how are these new AI components impacting the price of these healthcare software tools? Is AI an excuse for companies to charge more for new technology, or, charge less due to a decrease in labor costs?
How Pathstone Drives Cost Savings with IT Vendors Marketing AI Components:
Pathstone has helped many clients navigate the healthcare IT space, identifying cost reduction strategies and capitalizing on technology innovations through vendor partnerships. We help health systems identify high‑value opportunities and build strategies needed to execute them effectively. Our approach is practical, data‑driven, and aligned to each organization‘s operational and financial priorities. Pathstone works with its clients to analyze and prioritize cost reduction opportunities across all areas within a health system. This includes prioritizing use cases with measurable ROI, as well as developing and facilitating RFPs that clearly define requirements, success metrics, and implementation expectations. Pathstone also supports vendor evaluation, selection, negotiation strategy development, and due diligence to ensure solutions are a good fit for each organization.
Our contract negotiation strategies are designed to protect the health system’s interests, including pricing models, performance guarantees, data ownership, and scalability provisions. Negotiation strategies are customized to each client and may draw on levers including our internal benchmark data and industry expertise. Given the increasing prevalence of AI-marketed add-ons within healthcare IT, Pathstone has quickly developed expertise in sourcing software tools with an AI component. Below are examples of ways in which we support AI opportunities, cost reduction identification, and execution.
Three Recent Case Studies:
Client A Case Study: AI Imaging Tool Negotiation
Client A signed a contract to use a vendor’s diagnostic imaging AI tool that would help identify abnormalities with increased accuracies and faster turnaround times. The vendor charged the client a premium, claiming the AI technology-driven innovation justified the higher prices. Based on client billing data, Pathstone determined that Client A was not turning a profit on the cases based on the ratio of reimbursement amounts to vendor costs with the AI component. Pathstone developed a negotiation strategy utilizing our pricing value lever that resulted in obtaining pricing reductions while also receiving a credit, resulting in 13% benefit.
AI Sourcing Lesson: Hospitals should not blindly accept AI-driven software price increases without evaluating the full vendor/category spend and revenue.
Client B Case Study: Evaluating AI Components of Marketing CRM Tools
Client B engaged Pathstone to facilitate and develop an RFP for Marketing CRM tools. The participating vendors submitted their proposals, and Pathstone discovered that nearly 70% of vendors advertised an AI component that would increase client productivity around personalization and campaign development. Pathstone partnered with the client to validate these AI capabilities. Through our collaborative efforts, Client B ultimately determined the AI add-ons would be beneficial to the organization but did not warrant the pricing premium. After further evaluation of the proposals and understanding of the capabilities and value adds, Pathstone negotiated 35% of the total cost down through the competitive sourcing process.
AI Sourcing Lesson: Technology vendors are adding AI productivity components to pricing proposals, necessitating internal hospital evaluation of actual productivity enhancements and expected ROI.
Client C Case Study: Technology Usage with AI Component
Client C asked Pathstone to lead and facilitate an RFP for purchasing products through a Cloud Solution Provider (CSP). More than 30% of CSPs submitted bids highlighting their AI tools that would help right-size licenses and identify low utilization and consumption. The suppliers that offered this AI tool marketed this as a value add without an increased premium compared to the CSPs that did not highlight an AI tool. However, Pathstone identified additional opportunity to negotiate pricing through our benchmarking analytics, and we were able to renegotiate pricing by 12% – 16%, targeting both pricing and utilization value levers in this negotiation.
AI Sourcing Lesson: In many instances, AI components of healthcare software tools will provide a net positive benefit to the organization. The competitive sourcing process can be used to identify market leaders within a category who also enhance internal hospital productivity with automation.
Partner with Pathstone to Drive Margin Improvement through IT Sourcing:
AI is reshaping the vendor landscape in healthcare, and the financial implications are significant, whether vendors are using it to justify price increases or reduce their cost to serve. The right answer for any health system depends on the specific technology, the vendor’s business model, and the organization’s own strategic priorities. At Pathstone Partners, we help health systems ask the right questions. Whether evaluating an AI-enabled tool, facilitating a competitive RFP, or renegotiating an incumbent contract, our approach is data-driven and tailored to each client’s unique situation, ensuring health systems are paying for value.
Reach out to Pathstone Partners today to request a no-cost opportunity assessment and understand how we can help your organization navigate AI-driven cost pressures.