Mount Sinai Health Applies AI to Uncover Hidden Costs in Supply Chain

Mount Sinai Health System announced it is working with Midstream Health to implement an AI platform aimed at identifying cost savings and capturing missed payments within its supply chain operations. The system will be applied to an area where annual spending exceeds $1 billion.

The platform is designed to surface missed rebates, pricing discrepancies, and underpayments that can occur across complex supplier and contract structures. Mount Sinai said the effort is expected to generate a fivefold return on investment by capturing funds that would otherwise go uncollected.

“Mount Sinai purchases and tracks supplies, equipment, and services well in excess of $1 billion a year to provide seamless patient care and advance medicine, research, and education,” said Vincent Tammaro, executive vice president and chief financial officer. “Receiving the full contract value of our rebates is an important component of managing supply expenses and mitigating the impact of rising inflation that contributes to health care unaffordability for our patients and communities.”

Midstream’s platform consolidates financial, contract, and operational data into a single dataset, allowing AI systems trained on healthcare finance workflows to analyze transactions and flag issues. These systems prioritize actions tied to rebate gaps, pricing inconsistencies, delayed payments, and denied claims.