AI Transforming Healthcare: Reducing Administrative Burden and Tackling Burnout
TL/DR –
Artificial Intelligence (AI) is becoming a crucial tool in healthcare, reducing administrative burden and tackling burnout by streamlining operations. Currently, doctors spend approximately two hours on administrative tasks for every hour of patient care, with administrative friction accounting for about 25% of all U.S. healthcare spending. New AI tools, such as “Agentic AI”, are being used to automate processes such as prior authorizations and claim denials, and as of a 2026 report, 63% of physicians are using AI daily to support clinical and business operations.
AI Transforming Healthcare by Easing Administrative Workloads
Healthcare is being revolutionized by Artificial Intelligence (AI), providing operational solutions to reduce administrative burdens and combat professional burnouts.
In the 9NEWS Business Buzz, Business Expert Ryan Frazier spoke with 9NEWS Medical Expert Dr. Payal Kohli, founder of Cherry Creek Heart. They discussed the impactful role of AI in improving the healthcare business model.
Addressing Administrative Tax and ‘Pajama Time’
The U.S. healthcare system faces an “administrative tax” that constitutes up to 25% of total spending. Both independent clinics and major health systems grapple with the tedious tasks of manual coding, billing, and insurance authorizations, causing slim operating margins.
Doctors often experience “Pajama Time”— additional hours spent completing digital paperwork at home. Presently, doctors dedicate roughly two hours to administrative documentation for every hour of actual patient care. AI tools are now aiding in resolving this issue by listening to patient interactions and drafting clinical notes within seconds, enabling physicians to refocus on patients. Doximity’s March 2026 report indicates that 63% of doctors use AI daily for such tasks.
Using Agentic AI to Combat Insurance Claim Denials
Modern medicine’s financial dynamics were also discussed. In 2026, the industry is shifting from Generative AI to “Agentic AI”. This technology autonomously manages the intricate processes needed for insurance claims and denials. As insurance companies utilize AI to make claim decisions, providers are also adopting AI to ensure accurate and timely reimbursements, eliminating the need for billing specialists.
AI: An Aid to Physicians, Not a Replacement
The central point of the conversation was that AI is not replacing doctors; it’s streamlining the paperwork load. Currently, doctors spend twice as long on paperwork as they do with patients. Administrative friction accounts for about 25% of all U.S. healthcare spending. “Agentic AI” plays a critical role in automating insurance authorizations and fighting claim denials. As a result, 63% of physicians are now using AI daily to support clinical and business operations.
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