Healthcare executives are making some of their biggest technology, AI, and outsourcing decisions based on a risk that rarely materializes. A new survey from Third Way Health, Inc. (TWH), a leading AI-enabled services partner for healthcare organizations, of 200 US healthcare executives finds that despite concern for patient experience being the single biggest reason practices hesitate to adopt AI in the front office, cited by 80 percent, that fear doesn’t hold up once practices actually take the leap. According to The State of Practice Management 2026 Report, among executives who have already deployed AI in their front office, improved patient experience is the No. 1 reported outcome, cited by 79 percent. The very thing executives fear losing most is the outcome they are most likely to gain.
“For years, healthcare organizations have suspected that if they brought in AI or moved work outside of their four walls, it might compromise how their patients experience their healthcare,” said Frederik Mueller, Co-Founder and CEO of Third Way Health. “With the data showing the opposite is true, it’s clear that the biggest barrier to improving patient experience is fear itself. It’s holding back healthcare organizations from providing the highest possible quality of experience.”
The same pattern holds for outsourcing, too. Quality of patient interactions is the top-cited barrier to outsourcing further, at 55 percent, while improved patient experience is the top-reported outcome among practices that already outsource, at 77.5 percent. Regardless of the approach, patient experience is what executives fear losing and what they most often gain.
“Right now, a lot of organizations are stuck between the promise of what AI can do and the reality of what it takes to scale it in a meaningful way,” adds Timm Schneider, Co-Founder and Chief Operating Officer of Third Way Health. “Organizations need to decide how much and how quickly to invest in AI. That’s why data like this matters: it shows healthcare leaders the real gap between what they’re afraid AI will impact and what it’s actually impacting, so they can make investment decisions based on facts rather than presumptions.”
Additional key findings include:
- 92.5 percent of practices say they are not fully and sustainably staffed, and front office turnover hits 40 percent or higher in nearly 3 in 10 organizations –meaning a single departure can bring longer hold times and slower scheduling for patients.
- Despite the growing conversation around AI’s price tag, ROI isn’t the top challenge with AI in the front office: only 11 percent of executives cite “cost relative to results” as one of their biggest challenges, far behind the ongoing need for human backup (59 percent), vendor support and ongoing management (38 percent), and staff adoption (32 percent).
- 91 percent of large practices automate at least one front-office function with AI, compared with 72 percent of midsize practices, and are far more likely to track the metrics that justify further investment, – suggesting the practices measuring their results have the evidence to expand on what works.
- Healthcare leaders prefer that AI work alongside people, not instead of them. No respondents describe their ideal front office model as pure AI or automation with minimal staff; 85 percent prefer a hybrid or technology-enabled staff supported by a managed service partner.
Third Way Health runs a hybrid human-and-AI operating model for practices that collectively serve more than 5 million patients each year. Its own client outcomes reflect the same pattern that the survey captured industry-wide, reducing front-office administrative costs by up to 40 percent and cutting phone wait times in half through a white-glove implementation process that transforms operations in as little as 12 weeks.
“When we first talked about outsourcing and deploying AI in parts of our front office, every physician in the room asked, ‘What happens to our patients?’” adds Lucas Taylor, President of Astrana Health. “That is the right question to ask, and one we made sure to answer before moving forward. What we found was that when patients got through faster, appointments were easier to book, and our own staff finally had time to talk to people instead of just processing them.”
The findings continue Third Way Health’s momentum, following a $15M Series A funding round led by Health Velocity Capital and the release of two-year outcomes with Graybill Medical Group. Read the full report, The State of Practice Management 2026: How Medical Groups Are Addressing Staffing, AI, and Patient Access in the Front Office, HERE.
About Third Way Health
Third Way Health provides end-to-end virtual front office operations for healthcare organizations, combining an AI-enabled platform with a dedicated service team to handle patient calls, scheduling, eligibility verification, prior authorizations, referrals, appointment reminders, and no-show follow-up. Third Way Health serves medical practices and other healthcare organizations, supporting more than 5 million patients annually across 20,000+ providers, with 4.8/5 patient satisfaction. Clients typically see 40% cost savings on front-office operations, an 11% lift in visit volume, and phone wait times cut in half. Third Way Health is the operations layer between healthcare organizations and their patients.
About Astrana Health, Inc.
Astrana Health is a physician-centric, AI-powered healthcare company committed to delivering high-quality, patient-centered care. Built from the physician’s perspective, Astrana combines its scalable care delivery infrastructure, proprietary technology platform, and aligned provider networks to enable proactive, preventive care at scale – improving patient outcomes, enhancing patient experiences, supporting provider well-being, and driving greater value across the healthcare system.
Today, Astrana supports more than 20,000 providers and approximately 1.55 million patients in value-based care arrangements through its affiliated provider networks, management services organization, and integrated care delivery clinics spanning primary, specialty, and ancillary care. Together, Astrana is building the healthcare system we all deserve – one that delivers better care, better experiences, and better outcomes for all. For more information, visit www.astranahealth.com.
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