Healthcare Needs Operators, Not Just Algorithms.

We bridge the gap between AI potential and clinical reality. Using Six Sigma rigor, we help health systems go the “last mile” from technical validation to operational ROI.

The Structural Challenge

Why Technology Alone Isn't Sufficient

The challenge isn’t the innovation. It’s the operating model.

Administrative Complexity

+3000%

Admin Growth

Since 1970, administrative roles have grown to manage increasing regulatory and operational complexity. Adding AI without workflow redesign increases this load.

Source: BLS / Himmelstein & Woolhandler

The Financial Constraint

1.5%

Avg. Operating Margin

Health systems operate on razor-thin margins compared to MedTech (18%) or SaaS (25%). Investments must demonstrate immediate, measurable ROI to be sustainable.

Source: Moody’s 2024 Outlook

Pilot Purgatory

95%

Stalled Pilots

Most AI initiatives stall before reaching production scale due to governance complexity, IT integration hurdles, and lack of operational alignment.

Source: Moody’s 2024 Outlook

The Reality Check

The "Scope Creep" of Digital Transformation

Why are promised operational improvements rarely achieved? Here is the breakdown of the hidden costs and failure modes that most frequently derail ROI.

1. The AI "Data Janitor" Tax

Derails: Predictive Analytics, AI Workflow

THE HIDDEN COST: Data Harmonization

Medical data is notoriously messy. Your EMR codes differently than your Lab system. You budget for the AI, but spend extra hiring data engineers to map streams so the AI doesn’t hallucinate.

FAILURE MODE: Model Drift

Models trained on 2023 data lose accuracy by 2025. This requires a permanent “ML-Ops” team to constantly re-validate, or clinicians stop trusting the tool.

2. The "Tower of Babel" Integration

Derails: All Technologies

THE HIDDEN COST: Interface Fees

Buying the tech is easy; connecting it to the EMR is hard. Vendors often charge substantial fees to “open the door” (API access) for third-party apps.

FAILURE MODE: The “Swivel Chair” Effect

If integration is too expensive, staff manually type data from the smart device into the EMR. This increases labor time instead of reducing it.

Derails: Surgical Robotics

Derails: IoT & RFID

THE HIDDEN COST: Limited-Life Instruments

The robot is a one-time cost, but instruments have “kill chips” preventing reuse. Recurring costs for disposables can run ~$2,000 per procedure.

FAILURE MODE: Sterilization Bottlenecks

Complex tools take longer to sterilize. If Central Sterile Supply gets backed up, the expensive robot sits idle, killing volume targets.

4. The "Noisy Hospital" Problem

Derails: IoT & RFID

THE HIDDEN COST: Network Remediation

Hospitals are hostile to wireless signals (lead walls). You buy tags, but then need a massive network upgrade (cabling, APs) just to make them work.

FAILURE MODE: Battery Management

Active RFID tags have batteries. If you have 10,000 tags, staff might need to replace 13 batteries daily. If they fall behind, the system goes dark.

5. The "Alarm Fatigue" Factor

Derails: Telemedicine & Patient Monitoring

THE HIDDEN COST: Change Management

Too many alerts cause clinicians to ignore them. You need to budget 20% of CapEx for educators to redesign workflows and set proper thresholds.

FAILURE MODE: Liability & Insurance

If an AI “predicts” an event and staff don’t react in time, liability increases. Digital records of “knowing” create new malpractice risks.

Summary: The "Real" Cost Multipliers

Technology

The "Sticker Price"

The "Real Price" Multiplier

WHY ?

AI Software

$500k

1.5x – 2.0x

Data cleaning & annual re-validation costs.

Robotics

$1.5M

3.0x (over 5 yrs)

Expensive disposables & mandatory service contracts.

IoT / RFID

$200k

2.0x – 3.0x

Wi-Fi infrastructure upgrades & battery maintenance labor.

The Praxxis Health Vetting Checklist

Hard questions to ask before you sign. Protect your ROI.

For AI & Analytics Partners (The "Data Janitor" Risk)

"What is the 'Day 1' Accuracy vs. 'Day 100' Accuracy?"

WHY:

Forces them to admit if the model degrades (drifts) without constant retraining.

"Who pays for the ETL (Extract, Transform, Load) layer?"

WHY:

Vendors often assume your data is perfect. If it’s not (it never is), you want them to absorb the cost of cleaning it.

"If we retrain your base model using our patient data, who owns the new IP?"

WHY:

Don’t let them improve their product for free using your proprietary clinical data. You should get a discount or royalties.

For Integration & Software (The "Tower of Babel" Risk)

"Does this quote include the 'app orchard' or API fees charged by our EMR vendor?"

WHY:

Epic, Cerner, and others charge substantial fees to let 3rd party apps connect. Vendors often leave this blank.

"Is the integration bi-directional or read-only?"

WHY:

‘Read-only’ means the nurse still has to manually type the result back into the chart. You need write-back capability for efficiency.

"What is your guaranteed 'uptime' for the interface, not just the software?"

WHY:

The software can be working perfectly, but if the link to the EMR breaks, it’s useless.

For Robotics & Hardware (The "Razor and Blade" Risk)

"Are there 'hard stops' or 'kill chips' on the disposable instruments?"

WHY:

You need to know if a $2,000 tool will self-disable after exactly 10 uses, regardless of condition.

"What is the annual service contract cost after the warranty expires, and is it capped?"

WHY:

Vendors often hook you with a cheap Year 1, then hike maintenance fees by 15% annually. Ask for a 5-year cap.

"What is the sterile processing cycle time for these instruments?"

WHY:

If a robot tool takes 4 hours to cool down and sterilize, you might need to buy double the inventory to keep up with your surgery schedule.

For IoT & Infrastructure (The "Noisy Hospital" Risk)

"Does your deployment include a pre-installation RF (Radio Frequency) site survey?"

WHY:

If they don’t survey your lead-lined walls first, they will inevitably blame ‘your network’ when devices don’t connect.

"What is the specific battery replacement schedule, and is labor included?"

WHY:

Changing 5,000 batteries is a full-time job. Make sure you aren’t the one hiring the person to do it.

The Praxxis Health Standard

Six Sigma for the AI Era.

Traditional implementation methodologies fail because they treat AI like standard software. It isn't. It's a probabilistic tool that requires a deterministic operating model.

Our approach is disciplined, data-driven, and focused entirely on the metric that matters: Clinical Operational Improvement.

01 Diagnose (Define & Measure)

We don't start with software. We start with the clinical workflow. We map current state processes, identify bottlenecks, and quantify the baseline metrics.

02 Select & Validate

We leverage our venture network to find and vet AI solutions. We look beyond the sales pitch to assess technical stability, EMR integration capability, and clinical safety.

03 Integrate (Improve)

This is the 'Last Mile.' We redesign the workflow to accommodate the AI, train the clinical staff, and manage the change management process using Lean principles.

04 Scale (Control)

We implement continuous monitoring systems to track drift, measure realized ROI, and expand successful pilots across the enterprise.

Operational Results

Real engagements. Real ROI.

Case Studies
Radiology Operations

High-Volume ER Triage Optimization

35%
Reduction in Turnaround Time

The Challenge

A Level 1 Trauma Center was facing a 4-hour backlog on fracture reads during night shifts, leading to ED overcrowding and patient LWBS.

The Solution

We implemented an AI fracture-detection solution and redesigned the workflow to allow “AI-positive” flags to trigger preliminary splinting orders.

Workflow Redesign AI Implementation
Revenue Cycle

Automating Incidental Findings

$2.4M
Annual Revenue Capture

The Challenge

An IDN was losing track of incidental lung nodules in ED CT scans, causing poor outcomes and revenue leakage.

The Solution

We implemented NLP to scan radiology reports and route flagged patients directly to a Nurse Navigator for follow-up scheduling.

NLP Care Coordination

Operational Results

Real engagements. Real ROI.

Three Column Features

Vetting & Selection

We cut through the vendor noise. We perform deep technical and clinical due diligence to ensure you buy solutions that actually work.

Implementation Planning

Six Sigma workflow redesign. We map the "Before" and "After" states to ensure the AI augments the clinician rather than distracting them.

Capital & Strategy

For startups, we provide capital and strategic guidance. For health systems, we structure governance models to manage AI risk.