UC Berkeley experts are developing a trailblazing infrastructure to translate cutting-edge AI and behavioral economics healthcare research into powerful real-world advances in patient outcomes and drastically reduced medical costs.
The Center for Healthcare Marketplace Innovation, launched today by the College of Computing, Data Science, and Society and the Haas School of Business, will act as a force multiplier for top-tier technological innovation and economic insights. Developing and using the research on healthcare innovation incentives will lead to the creation and deployment of interventions that meaningfully improve public health.
Artificial intelligence (AI) is widely expected to transform healthcare. The new Berkeley center aims to play an essential role in ensuring those innovations benefit the public. AI tools could enhance care quality by, for example, helping triage patients in emergency rooms, diagnosing diseases and coaching clinicians. These technologies can also help reduce the 15% to 30% of healthcare spending that goes towards administrative functions each year, said Jonathan Kolstad, the center’s faculty director. That means up to $250 billion less in annual spending and more time focused on improving patient care. Still, this moment also carries risk.
“AI is going to be central to healthcare delivery in 10, 15 years from now,” said Kolstad, an associate professor at Berkeley Haas. “We’re at this inflection point. By understanding the technology, the systemic incentives and the human abilities in the healthcare system, we have a tremendous opportunity to help shape those dynamics.”
As society shifts to a new era of healthcare where AI plays a larger role, understanding human decision-making will remain central to discovering and applying useful solutions. The center aims to connect expertise in behavioral economics with advanced research and development at Berkeley to help develop healthcare solutions that people and companies want and will harness.
“I think it matters whether and how those tools get built to actually enhance care delivery and help patients, and whether they are built in equitable, ethical ways because they’re started in places like Berkeley,” he said.
The center will focus on three pillars: conducting research to advance the science of innovation incentives in healthcare; encouraging interdisciplinary collaboration on projects and solutions; and partnering with healthcare providers, insurers, government agencies, and others to test and refine the novel interventions.
Kolstad hopes this will be the “bench-to-product runway” that AI, computer science and behavioral science need to be translated from research into impact.
The center’s faculty are the right experts to lead this charge. Kolstad and faculty affiliates like Ziad Obermeyer are award-winning academics, founders of healthcare innovation startups, and experts called upon by California and federal leaders to inform healthcare policies and regulations. Obermeyer is an associate professor at Berkeley’s School of Public Health.
This expertise enables them to build unique research and data resources and foster interdisciplinary incubation and industry and policy collaborations. Berkeley’s all-around excellence amplifies their potential impact. With connections to ambitious initiatives like the UC San Francisco-UC Berkeley Joint Program in Computational Precision Health and the open platforms initiative recently launched by CDSS, the center can support other leading thinkers in moving their research into impact for public good.
“Berkeley’s leadership in disciplines across computing, public health and economics and dedication to making real-world impacts make it the obvious home for this exciting initiative,” said Jennifer Chayes, dean of the College of Computing, Data Science, and Society. “The Center for Healthcare Marketplace Innovation will enable those at the intersection of healthcare economics and policy to join together with clinical and computing researchers to redefine success in healthcare outcomes.”
The center’s foundational development was made possible through a generous philanthropic donation by an anonymous thought partner. CHMI will be housed within the Institute for Business Innovation at Berkeley Haas.
“Harnessing AI to make our healthcare system work for people and ensure patients get better care requires a truly interdisciplinary approach,” said Berkeley Haas Dean Ann Harrison. “I’m very excited to see some of Berkeley’s great minds and cutting-edge resources come together at the new Center for Healthcare Marketplace Innovation.”
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