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AI can help heal the fragmented U.S. health care system

Phillip Polakoff, MD and June Sargent
Tech
August 6, 2025
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The U.S. health care system is a paradox. It’s the most expensive in the world—costing over $4.5 trillion annually—yet produces some of the worst health outcomes among developed nations. Fragmentation is at the core of this crisis. Patients bounce between primary care doctors, specialists, emergency rooms, and insurers, often with no single point of coordination. The result? Redundant tests, misdiagnoses, delayed care, and frustrated clinicians.

Enter artificial intelligence—not as a silver bullet, but as a powerful tool to address this disjointed system. AI has the potential to become the connective tissue that links our siloed health care components into a more cohesive, responsive, and equitable ecosystem.

Bridging the data divide

The average hospital uses over 15 electronic systems that often don’t talk to each other. AI, particularly in the form of machine learning algorithms, can help unify these disparate data streams. Natural language processing (NLP) allows AI to extract meaningful insights from unstructured clinical notes, insurance claims, lab results, and imaging studies. Instead of overwhelming doctors with data, AI can provide actionable intelligence at the point of care.

Imagine an AI-enabled platform that integrates a patient’s entire medical history—from urgent care visits to social determinants of health—and presents it in one coherent dashboard. This would help clinicians make faster, better-informed decisions, reduce duplicate testing, and close care gaps.

Enhancing care coordination

AI can also improve how we navigate the system itself. Virtual care assistants powered by AI can help patients manage appointments, refill prescriptions, understand insurance coverage, and monitor chronic conditions at home. By reducing no-shows and keeping patients engaged between visits, these tools lighten the administrative burden on already overtaxed health systems.

For clinicians, AI can automate routine communications and even flag patients at risk of hospital readmission. One study published in Nature found that predictive algorithms were able to reduce readmission rates by 20 percent in pilot programs, a critical step in value-based care models.

Expanding access and equity

Health care deserts, especially in rural America, have long lacked access to specialists and primary care. AI, combined with telehealth, can democratize expertise. Tools like AI-assisted radiology or dermatology apps can extend specialist-level insights to frontline providers and even directly to patients in underserved communities.

AI has the potential to flag disparities in treatment patterns across race, gender, and socioeconomic status—if it’s built and trained responsibly. Transparent and bias-aware models can become part of the solution rather than reinforcing existing inequities.

Reducing burnout, not replacing humans

Much of the fear around AI in health care stems from the misconception that it will replace doctors. The truth is that AI should augment—not automate—the human touch. Clinicians spend up to half their time on documentation and administrative work. AI scribes and voice recognition tools can cut this time dramatically, letting providers refocus on patient relationships and personalized care.

Still, ethical guardrails are essential. AI tools must be explainable, validated through rigorous trials, and subject to ongoing scrutiny. The recent controversy over biased algorithms in clinical decision-making highlights the dangers of deploying AI without oversight or transparency.

What it takes to get this right

Technology alone won’t save health care. We need policies that promote interoperability, incentives that reward quality over volume, and regulations that ensure AI benefits all patients—not just those with the best internet connection or insurance plan.

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Crucially, we must bring patients, providers, ethicists, and community leaders into the development of AI systems. Only with diverse input can we build tools that reflect the real-world complexity of human health.

A smarter future is within reach

AI won’t fix every flaw in our health care system, but it offers a rare opportunity to reimagine how care is delivered, coordinated, and experienced. With thoughtful design and ethical deployment, artificial intelligence could be the key to transforming a fragmented system into a healthier, more connected America.

Now is the time to invest in smart technologies—and smarter governance—that put people, not just profits or performance metrics, at the heart of health care.

Phillip Polakoff is a physician executive. June Sargent is a communications strategist.

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Founded in 2004 by Kevin Pho, MD, KevinMD.com is the web’s leading platform where physicians, advanced practitioners, nurses, medical students, and patients share their insight and tell their stories.

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AI can help heal the fragmented U.S. health care system
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