The 7 Healthcare Companies With the Highest Potential for GenAI Transformation

The healthcare industry is on the brink of a generational leap forward, with generative AI poised to revolutionize everything from patient care to operational efficiency and, if adopted more widely, save the industry $360 billion a year. But not all companies are equally prepared to harness this transformative power.

So, which health tech companies have the highest potential to transform and grow in the age of AI, replacing incumbents?

To find out, we analyzed leading mid-cap public companies to identify the 50 with the most to gain from generative AI . Through a rigorous evaluation process, we assessed companies on their ability to leverage AI based on five critical factors: efficiency potential, room for profitability gains, access to cash for investment, readiness for AI adoption in their sector, and whether leadership has demonstrated a vision for AI.?

Seven healthcare companies made the list. Let’s dive in:

1. Teladoc Health

Transformation Score: 4.8

Teladoc Health is a pioneer in the telehealth industry, offering a wide array of virtual healthcare services globally. The company’s R/E was approximately $535K, reflecting room to improve productivity. Teladoc also faces financial challenges, with an operating margin of -11.93%, indicating room for improvement in efficiency. However, with cash reserves of $1.1 billion, Teladoc is well-equipped financially to pursue its ambitious generative AI initiatives, which are already underway.

Current Challenges: Financial performance, patient engagement, and operational efficiency.

Potential GenAI Use Case: Real-Time Health Monitoring. Develop an AI platform that analyzes patient data from wearable devices during telehealth sessions, providing real-time health insights and alerts to clinicians for timely interventions.

2. Encompass Health

Transformation Score: 4.4

Encompass Health runs the nation's largest system of rehabilitation hospitals. With nearly 33k employees, it is one of the largest companies on this list. Its R/E ratio is among the lowest, suggesting it has room to improve productivity. That said, healthcare is one of the industries best positioned to implement AI for better patient outcomes and greater profitability. Its CIO, Rusty Yeager, is bullish on AI.

Current Challenges: Operational efficiency and patient outcomes.

Potential GenAI Use Case: Patient Care Management. Create a generative AI platform that analyzes patient data to provide personalized care plans, predict potential health issues, and suggest preventive measures. This can enhance patient outcomes and operational efficiency.

3. Dexcom

Transformation Score: 4.2

Dexcom , a manufacturer of medical devices for diabetes management, has just $381K in revenue per employee. But, with an operating margin of 22.81%, Dexcom has shown commendable growth and has resources to invest. The company's integration of AI, particularly through partnerships like with UiPath for automation, demonstrates its commitment to advancing diabetes care technology, enhancing both patient monitoring accuracy and usability.

Current Challenges: Operational efficiency and patient outcomes.

Potential GenAI Use Case: AI-Powered Health Monitoring.

Develop a generative AI platform that continuously monitors glucose levels, predicts fluctuations, and provides personalized health recommendations to patients. This can improve disease management and patient outcomes.

4. The Ensign Group

Transformation Score: 4.2

The Ensign Group provides comprehensive skilled nursing and senior living services across several states. The company achieves a revenue per employee of $119k, which is lower than other healthcare companies on this list because their employee count is among the highest. It maintains an operating margin of 12.8%, indicative of solid profitability with room to grow. Ensign has the resources to invest in generative AI initiatives, which could significantly enhance operational efficiency and patient care services in its healthcare facilities.

Current Challenges: Operational efficiency, quality of care, and regulatory compliance.

Potential GenAI Use Case: AI Workforce Scheduling. Implement an AI system that optimizes staff scheduling based on real-time data such as patient needs, staff availability, and regulatory requirements. This can help improve operational efficiency, reduce labor costs, and ensure that residents receive timely and adequate care.

5. Acadia Healthcare

Transformation Score: 4.2

Acadia operates a network of mental health and substance abuse treatment facilities. With a revenue per employee of $163k (again, driven by a high employee count) and an operating margin of -0.87%, the company currently faces challenges in productivity and efficiency common to the healthcare services sector.

Current Challenges: Patient engagement, treatment outcomes, and regulatory compliance.

Potential Generative AI Use Case: AI-Enhanced Treatment Personalization and Monitoring.

Create an AI platform that personalizes treatment plans by analyzing patient data, including medical history, therapy progress, and behavioral patterns. The system can provide real-time monitoring and feedback, alerting healthcare providers to potential issues and suggesting adjustments to treatment plans, improving patient outcomes and compliance with treatment protocols.

6. Brookdale Senior Living

Transformation Score: 4.0

Brookdale offers a wide range of senior living services, including independent living, assisted living, and memory care across the United States. This company generates approximately $114k in revenue per employee with a very slim operating margin of 0.64%, indicating tight profitability with room for improvement. Despite a net loss of $189 million, Brookdale's position in the growing elder care market could benefit from strategic investments in generative AI to enhance operational efficiency and patient care services.

Current Challenges: Operational efficiency, quality of care, and regulatory compliance.

Potential GenAI Use Case: Resident Monitoring and Care Optimization.

Implement an AI platform that continuously monitors resident health indicators and environmental conditions. The system can predict and prevent potential health issues by alerting caregivers to necessary interventions and optimizing care plans. This enhances the quality of care, ensures regulatory compliance, and improves operational efficiency by reducing emergency incidents and hospitalizations.

7. agilon health

Transformation Score: 3.8

Agilon Health provides platform-based healthcare solutions with a mission of transforming healthcare for seniors. Despite a very high revenue per employee of about $5.61 million (they have just over 700 employees), the company operates at a negative margin of -12.38%. However, Agilon’s high growth potential positions it as a company that could greatly benefit from generative AI in streamlining healthcare management and improving patient outcomes.

Current Challenges: Patient outcomes, operational efficiency, and regulatory compliance.

Potential GenAI Use Case: Patient Care Coordination. Implement an AI platform that analyzes patient data to coordinate care across multiple providers. The system can ensure that all caregivers are updated with the latest patient information and suggest optimal treatment plans, improving patient outcomes and reducing redundant tests and procedures.

Curious about which other companies made the list? A.Team ’s AI Future 50 report identifies the companies with the greatest potential for AI transformation.?

Download the full AI Future 50 report.