Hospitals are weighing artificial intelligence not just for clinical gains but for the balance sheet, and Medicare’s New Technology Add-on Payments are tilting the scales. A record number of AI devices qualified for these temporary bonuses this year, giving health systems a financial cushion to try software that promises faster diagnoses or streamlined workflows. The sweetener, available for two to three years, has become a go-to lever for startups seeking early adoption while they build the real-world evidence payers demand. But the clock is ticking: when add-on payments expire, only tools that deliver measurable savings or improved outcomes are likely to stick, sharpening pressure on vendors to prove ROI and on hospitals to avoid being stranded with unfunded tech. For investors and executives, the message is clear—subsidies can open doors, but sustainable reimbursement and demonstrated value will determine who lasts.
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