AI vs. Red Tape: How Automation Is Saving Medicaid Margins
As Medicaid cuts loom and administrative costs soar, CFOs are turning to AI to protect margins, streamline operations, and expand access for vulnerable populations.
Analysis by Marie DeFreitas, October 13, 2025, reveals that uncertainty is an understatement for healthcare right now, with general economic instability and looming Medicaid cuts prompting CFOs to seek stabilizing financial strategies.
At Saint Peter's University Hospital, a partnership with Escher Health's AI platform led to a 162% increase in Medicaid enrollment and a $13.4 million improvement in revenue. Key outcomes include:
- Three- to four-times more self-service by patients
- 40% greater staff efficiency
- Shorter follow-up time
Medicaid's increased administrative burden, including work requirements and biannual eligibility checks, often hinders the enrollment of new eligible members.
Uncertainty is an understatement for healthcare right now.
Author's summary: AI helps Medicaid with automation.