AI’s ‘moment’ has arrived for HME providers

CLEVELAND – A panel of venture capitalists and investors backing tech companies in the HME space said during the HME News Business Summit that the time is ripe for artificial intelligence (AI) to revolutionize provider operations, thanks to a convergence of macro trends.   

They point to a “perfect storm” of 1) increasing digitization, 2) a growing population of aging Baby Boomers and 3) an urgency for “better, faster, cheaper” operations making broad tech adoption a strategic imperative for HME providers. 

“Why (invest in HME tech) now?” said Josh Chin, a principal at Ansa Capital, which is backing Synthpop. “It’s a confluence of trends built around workflows and bottlenecks that prohibit growth. It’s a pain (that can be addressed) with advancements in AI.” 

Joining Chin and moderator Brian Boulanger, vice president of information technology for Hart Medical, were: 

• Steve Fredrick, general partner, Grotech Ventures (Notable Systems); 
• Naveed Matinfar, partner, Lightspeed Venture Partners (Tennr); and 
• Peter Segall, managing director, Insight Partners (Parachute Health) 

‘AI is having a moment’ 

Matinfar said AI has the most potential in three areas of an HME provider’s business: intake, billing and customer service, with the most immediate and prevalent right now being intake. 

“AI is having a moment in manual, rote work,” he said. “We expect to evolve (those areas) with AI.” 

A good problem to have 

As providers streamline patient intake with AI, they must anticipate the ripple effects on their operations, Chin said. Increased efficiency can lead to higher patient volumes, which in turn demands faster equipment delivery and tighter coordination across departments. 

“As (patient intake) improves, the downstream of these efficiencies is accelerated patient intake,” he said. “How do you ensure you’re getting the equipment to them in a timely manner? It really needs to be an intentional balance.” 

Choosing the right partner 

With tech adoption a given, panelists say the real challenge for HME providers is choosing the right partner. Segall emphasized the importance of working with companies that understand the nuances of the business and can clearly articulate how their solutions improve staff efficiency and provide ROI. 

“There are best practices they have to understand and a myriad of complexities,” he said. 

Fredrick advised providers to avoid “large language model (LLM)-only approaches – it’s not the most effective and it can be slow and hallucinate.” 

Chin recommended asking potential tech partners: What’s your long-term roadmap look like? “They need to give you the confidence they’ll continue innovating,” he said. 

Platform vs. point solutions 

A tech company’s roadmap is especially relevant given the number of vendors that have flooded the industry in recent years. Notable Systems, Tennr, Synthpop and Parachute Health were recently joined by Ashvin AI in a horse race to help HME provider businesses revolutionize their intake. 

Panelists predict a shift from isolated point solutions to integrated platform systems—similar to how Shopify gained traction by offering a full-stack approach. 

“That’s when Shopify saw real success,” Segall said.