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The Integration of Gen AI and CPQ Systems for Personalized and Efficient Healthcare

As more and more organizations integrate Generative AI with Configure, Price, Quote (CPQ) systems, they declare their belief that we can aspire to incredible advancements in human health and well-being through digital transformation.

On the business back end, integrating Generative AI tools into Configure, Price, Quote (CPQ) systems can increase operational efficiency, bolster decision-making strategies, and enhance process automation. On the front end, and despite the term “Artificial” in the name, these integrations promise a profound shift toward a more personalized care model. Together, this synthesis enables Healthcare and Life Sciences (HLS) organizations to focus on personalizing treatment plans and streamlining patient engagement throughout the continuum of care. A holistic transformation is underway, driven by the symbiosis of Generative AI tools with CPQ systems.

Generative AI can learn, adapt, and derive insights from large, complex data sets. Because of this, the traditionally conservative healthcare sector is embracing this nascent technology with earnest enthusiasm. Today’s most pragmatic HLS organizations were driven toward early adoption by the immediate and tangible results on business performance and patient outcomes. They believe the marriage of intelligent data insights with CPQ systems will fundamentally alter how they conduct business from the board room to patient care facilities.

Together, let’s discuss how Generative AI’s integration into CPQ systems is set to impact a myriad aspects of healthcare delivery. We’ll discuss its effect on seemingly disparate elements, including personalized treatment plans, streamlined supply chain management, and accelerated drug delivery, to bridge technical intricacies with the innate ethical considerations of this type of digital transformation. With the combination of Generative AI and CPQ, the future of healthcare delivery is adaptive, tailored, and beyond patient-centric.

Let’s take a more granular look at some use cases and aspirational applications.

  • Use case 1: Personalized treatment plans

By analyzing and interpreting extensive datasets, Generative AI algorithms can discern complex, nuanced patterns in patient data to tailor treatment options to individual patient needs. This ability leads us away from outdated, one-size-fits-all healthcare modalities and toward a world where precision medicine is the new norm.

Integrating these insights with CPQ systems enhances the process further by optimizing the selection and pricing of these personalized treatment plans. This ensures that the continuum of care—from patient onboarding to ongoing management and follow-up—is finely tuned to each patient’s unique physiological makeup while effectively managing service delivery and cost-effectiveness.

Example: By analyzing the genetic data, lifestyle choices, and health history of a patient with a complex condition like Type 2 diabetes, Generative AI could help identify the most effective treatment regimen. For instance, it might recommend a specific combination of medication, dietary adjustments, and exercise tailored to the patient’s unique genetic markers and lifestyle factors.

CPQ systems then customize and price this personalized treatment plan. They consider the patient’s insurance coverage and eligibility for subsidies or discount programs, ensuring the proposed regimen aligns with both medical needs and financial constraints. This seamless integration optimizes treatment effectiveness while managing costs, making precision healthcare accessible to a broader patient base.

Impact: This approach streamlines patient care, sharply reduces the guesswork in treatment selection, and enhances resource allocation, improving outcomes and cost-efficiency.

  • Use case 2: Streamlined supply chain management

Efficient supply chain management is crucial for maintaining high standards of healthcare delivery. Integrating Generative AI into CPQ systems introduces predictive analytics to this vital area. By accurately forecasting demand, optimizing stock levels, and predicting supply chain disruptions, Generative AI enables a more robust and responsive supply chain infrastructure. These capabilities are especially vital during health emergencies, where swift adaptation to changing needs can be a matter of life and death.

Example: An AI-enhanced CPQ system can detect early signals of an influenza outbreak through health data trends. In turn, pharmaceutical organizations could proactively increase the stock levels of flu vaccines and essential antiviral medications in affected regions. By optimizing inventory allocation based on predictive analytics, the system ensures that providers are well-equipped to handle the surge in patient demand.

Impact: This approach achieves substantial cost efficiencies and more efficient resource allocation, enhancing the ability to meet healthcare demands promptly. It marks a pivotal advancement in healthcare logistics and elevates the quality of patient care.

  • Use case 3: Accelerated drug discovery

Generative AI algorithms can delve into vast datasets, encompassing molecular structures, biological interactions, and clinical trial outcomes, to pinpoint promising drug candidates swiftly. This novel methodology may significantly accelerate the research and development phase of drug development, paving the way for exciting therapeutic breakthroughs.

Incorporating these AI-driven insights, CPQ systems could play a pivotal role by streamlining the processes for bringing these new drugs to market. By doing so, CPQ systems enhance operational efficiency and contribute to strategic decision-making, enabling pharmaceutical and biotechnology companies to dynamically adjust their product offerings in response to emerging research findings and market demands.

Example: Generative AI and Machine Learning—together atop a multiomics platform—could help identify a new biomarker that could potentially target early-stage cancer cells. Following this discovery, CPQ systems quickly assess the market, configure the pricing strategy, and prepare accurate quotes for the production and distribution of this groundbreaking treatment. This seamless integration ensures that from the moment a new drug or testing modality candidate is identified, every step toward its commercial availability is optimized for speed, cost, and efficiency.

Impact: This synergetic integration transcends traditional drug discovery and market launch timelines, ushering in an era where new treatments reach patients faster and more cost-efficiently than ever before. It enables the pharmaceutical and biotechnology industries to adapt to discoveries and patient needs swiftly. It holds the potential to change how innovative therapies are developed and delivered to the global market.

  • Use case 4: Fraud detection in healthcare claims

Generative AI is revolutionizing fraud detection in healthcare claims management by harnessing advanced techniques such as anomaly detection, behavioral analysis, and predictive modeling. This technology scrutinizes claims in real time, integrating and analyzing data from a multitude of sources to identify inconsistencies and potential fraud with increased precision.

CPQ systems then leverage Generative AI’s analytical power to further refine the claims management process, ensuring accurate quote generation and pricing adjustments based on risk profiles detected by AI. This enhances the integrity and efficiency of healthcare claims processing and ensures that billing and insurance claim procedures are optimized for fairness and accuracy. Together, they safeguard HLS organizations against financial losses and foster generalized trust in healthcare systems.

Example: Consider a scenario where Generative AI monitors the claims submission patterns across a network of healthcare providers (HCPs). It flags an unusual series of claims from a clinic exhibiting signs of overbilling for routine procedures. Upon further investigation facilitated by the CPQ system, discrepancies are confirmed, leading to corrective actions before substantial losses occur.

Impact: This integration significantly diminishes fraudulent claims by employing a proactive approach to detect and address fraud, leading to notable financial savings and reinforcing system-wide trust.

Ethical considerations

While the potential of Generative AI in CPQ for healthcare is vast, ethical considerations are paramount. Transparency in algorithmic decision-making, safeguarding patient privacy, and addressing biases are critical. Striking the right balance between harnessing the power of data-driven insights and ethical practice ensures that the integration of AI aligns with responsible innovation principles.

Conclusion: Toward a healthier tomorrow

As we’ve explored the transformative potential of integrating Generative AI with CPQ systems for healthcare, it’s essential to acknowledge some examples’ exploratory and aspirational nature. These scenarios are intended to illustrate capabilities while serving as beacons for what we can aspire to achieve.

This aspirational perspective is crucial as we discuss innovations ranging from personalized treatment plans to streamlined supply chain management—from accelerated drug discovery to advanced fraud detection. HLS leaders must embody a collective aspiration toward a healthcare system that is more responsive, personalized, and efficient, underpinned by the ethical application of cutting-edge technology.

In embracing this intersection, we are not merely adopting new technologies; we are reimagining the future of healthcare. The use cases outlined offer a glimpse into a future where the full potential of Generative AI and CPQ integration has been realized—a future where healthcare is not only about reacting to illnesses but predicting and preventing them.

As we progress, the focus remains on transforming these aspirations into tangible outcomes. As more and more organizations integrate Generative AI with CPQ systems, they declare their belief that we can aspire to incredible advancements in human health and well-being through digital transformation.

Explore possibilities. Enhance operational excellence.

Prioritize efficiency. Prioritize the patient.

Let’s build toward a healthier tomorrow.

Photo: alphaspirit, Getty Images

Sri Tella, Senior Director of Technical Product Management at McKesson, leads transformative CPQ initiatives for Healthcare and Life Sciences organizations. She specializes in legacy migrations and the optimization of cloud technologies for sales and operations teams.

Based out of McKesson’s Alpharetta, Georgia office, Sri previously served as Director of Sales and Marketing, where she managed key projects spanning strategy, architecture, and implementation. She also served as Senior Manager for CPQ Solutions, overseeing projects for multibillion-dollar conglomerates and improving ITO (Inquiry to Order) processes and tools. With over 25 years of experience, Sri has made significant contributions in technology and management roles at McKesson, Tech Mahindra, Rosetta Stone, Birlasoft, and Wipro. She holds multiple certifications from BigMachines, Oracle, Apptus, and Salesforce, reflecting her commitment to excellence in CPQ and digital solutions.

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