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Building an Intelligent Practice

Physicians are adopting AI faster than nearly any other profession. Their practices aren't keeping pace. Doug Lundberg and Jason Martin, MD on the gap, the gimmicks, and the infrastructure that closes it.

DL
Doug Lundberg
Co-Founder & Chief Technologist
JM
Jason Martin MD
Co-Founder, Medical Director & Board-Certified Plastic Surgeon
July 1, 2026 · 21 min read

The patient encounter is finished. The physician closes the door, walks to the workstation, and the note is already there: structured, accurate, ready for review and signature. The ambient AI has been listening throughout the encounter, processing the clinical conversation in real time, generating documentation that used to take fifteen minutes of typing to produce.

Roughly 30 percent of the healthcare market was using ambient AI scribes by the end of 2025. Among U.S. physicians actively using AI in their clinical practice, the majority report doing so every single day. The adoption happened fast, and the reason has nothing to do with technology enthusiasm. Physicians adopted ambient AI because it solved a problem they felt every morning and every evening: the accumulation of documentation work that followed them home, the after-hours charting that ate into time with their families, what clinicians call pajama time. Physicians estimate AI could cut that burden by nearly half. That kind of relief speaks for itself.

Now consider what happened at 9:47 that same evening.

A prospective patient opened a browser and searched for a plastic surgery practice. They had been thinking about a procedure for months. The kind of thing you research privately, not during the workday. They found the website. There was a contact form. They did not fill it out. They told themselves they would come back to it tomorrow and closed the tab. Tomorrow they did not come back.

The practice never knew this person existed.

The clinical AI experience and the patient acquisition reality are running on different tracks, and the distance between them costs practices patients they will never know they lost. The same profession that has adopted AI faster than almost any other is, in many cases, running the business side of medicine the way it ran in 2010. The tools exist. The logic has not followed.

We co-founded MDME at the intersection of clinical medicine and technical practice operations, and the argument here draws from both places. Jason has been inside plastic surgery for nearly two decades. The patient journey, and what happens to prospective patients who never become patients, is concrete from that vantage point. The observation comes from practices across multiple specialties and markets. The data supports it, and so does the work.


The Clinical AI Curve Is Real, and Physicians Are Leading It

The numbers on physician AI adoption are worth stating directly.

According to Doximity’s 2026 State of AI in Medicine report, which surveyed 3,151 U.S. physicians across 15 specialties, 94 percent of physicians are either currently using AI in their clinical practice or interested in doing so. Adoption jumped from 47 percent of physicians in early 2025 to 63 percent by January 2026. Among those using it, 69 percent do so daily. Family medicine physicians report 88 percent daily use among adopters.

The benefits physicians describe are substantial. Three-quarters of physician AI users report reduced administrative burden. Nearly 70 percent report better patient care outcomes. Physicians estimate AI could eliminate nearly half of their after-hours documentation work, which has long driven burnout. In a 2025 Doximity survey, 85 percent of physicians reported feeling overworked. The adoption of AI tools is, for many of them, a direct response to a problem that had been getting worse for years.

The leading clinical application is ambient documentation: AI that listens to a patient encounter and generates structured clinical notes without the physician having to type. Market leaders in this space are deployed across thousands of practices. Independent research documents the productivity gains consistently. Studies show 10 to 15 minutes saved per patient encounter, overall charting time reduced by as much as 75 percent, and most physicians saving roughly an hour per day. A study from Texas Oncology found that documented diagnoses per encounter increased from 3.0 to 4.1 after ambient scribe adoption. The AI was capturing clinical detail that had previously been lost in the pace of documentation.

“Physicians adopted ambient AI because the tools solved a problem they felt every day. Technology enthusiasm had nothing to do with it. That is the only signal that matters about whether any AI application will actually deliver value.”

What is notable about this adoption curve is how it happened. Physicians are not, as a professional class, early technology adopters. Medical training does not include coursework on evaluating software platforms. The adoption of ambient AI scribes spread because a colleague mentioned it, someone tried it, and it worked. The technology earned the adoption by removing a real burden.

That mechanism — utility first, technology second — is what practice operations AI should be measured against. The tools that earn consistent use are the ones that remove something the practice feels every day.


Practice Operations AI Is Running a Different Race

The clinical AI adoption curve and the practice operations adoption curve are two different curves.

The physician using ambient AI to document patient encounters is, in many cases, working in a practice that still operates its front desk, phone systems, lead follow-up, and patient reactivation workflows the same way it did a decade ago. The structural reason is specific: clinical AI was pushed into adoption by acute, personal pressure. Documentation burden was destroying physician quality of life daily, and the market responded with tools that addressed it directly.

Practice operations AI has had a different forcing function, more diffuse and harder to feel. The front desk that answers 58 percent of incoming calls during business hours is not aware it is missing 42 percent. The practice that generates ten leads a week from advertising has no visibility into the leads that inquired after hours and moved on. The reactivation campaign that nobody ran this quarter has no cost that shows up on any report.

Documentation burden announces itself every evening. Missed revenue never does.

That invisibility is the problem, and it is also why practice operations AI has been slower to arrive than clinical AI. The pressure was always there. It just never showed up as a notification the physician had to dismiss before going home.


The Objection We Hear Most Often

There is a version of this conversation that happens regularly across practice sizes and specialties. A practice owner will say: we do not really have that problem. Our staff is thorough. We follow up with everyone who contacts us.

The question we ask back: who answers your phone at nine in the evening?

Most inquiries about elective and cosmetic procedures arrive outside office hours. Web traffic data for plastic surgery and cosmetic practices consistently shows peak inquiry activity in the evening. The patient considering a rhinoplasty is searching on their phone after the kids are in bed. They are researching on a Sunday afternoon. They are working up the nerve to make contact on a weeknight after months of thinking it over.

Jason has watched this pattern from inside surgical practice for years. A patient arrives for a consultation, and when you ask how long they have been thinking about this procedure, the answer is often a year. Two years. Sometimes longer. The decision cycle for elective medicine runs in months, and patients move through it privately, at hours when no one at the practice is available to engage.

“The practice that thinks it has no gaps has usually never measured the volume that exists outside its hours.”

When patients finally work up to making contact and reach a voicemail or a contact form in the dark, most of them close the tab and tell themselves they will try again. Many do not. The 42 percent of calls that go unanswered during business hours, a figure documented across medical group data, is only the visible portion of missed opportunity. Add the volume that arrives after hours and finds nothing to engage with, and the full scale is considerably larger.

Most practices have clear visibility into what they process. The volume that arrived after hours and found nothing to engage with is invisible by definition.


The Gimmick Problem

There is a version of AI adoption in medical practices that has become the industry default, and it has shaped how practice owners think about what AI can actually accomplish.

The chatbot. The pop-up widget in the corner of the website. The interface that answers questions about hours and location and, if the patient is lucky, helps them understand a procedure they are considering.

It solves a real problem: patients who want information outside of office hours can get it, and practices that deploy these tools well do capture inquiries they would otherwise miss. We deploy them. They work as one component of a larger system.

The problem is that the chatbot has become the industry cliché. Every marketing agency with a platform subscription is now selling AI-powered patient engagement. Every vendor with access to a language model has bolted a chat interface onto their product and added AI to the feature list. The physician who has a website chatbot now believes they have an AI strategy. What they have is one tool performing one function at one point in the patient journey, connected to nothing else in their operations.

Consider what that actually looks like. A prospective patient engages with the chatbot. They ask questions. The chatbot answers. They leave their contact information. That information goes to an email inbox, or a notification the front desk will see tomorrow morning, or a system with no connection to the CRM, the follow-up workflow, or anything else the practice uses to manage patient relationships. The AI has done its job. Everything that follows depends on a human getting to it, during hours when they are available, in the order things came in.

The physician with a ChatGPT subscription who uses it to draft emails, and the practice with a chatbot on its website, are both using AI. The gap between that and AI-driven practice infrastructure is the subject of everything that follows.


The Infrastructure Argument

The clinical AI physicians rely on earns its value through integration into the systems that matter.

The note the ambient scribe generates connects to the EHR, maps to the billing codes, and feeds the documentation chain that supports proper reimbursement. The ambient scribe deployed in a separate application, whose output a staff member copies into the record by hand, has created a new step without eliminating the old one. Architecture is what separates useful from redundant.

The same is true in practice operations.

“A chatbot connected to nothing is a better answering service. AI connected to everything is practice infrastructure. Architecture is what separates them.”

A lead comes in through advertising after hours. In a practice with AI built as infrastructure, these steps complete before any human sees it:

  1. Attribution. The system identifies the correct source channel for the lead: paid advertising, organic search, referral, or direct.
  2. Qualification. It evaluates the inquiry and determines whether this is genuine, high-intent interest or noise.
  3. Segmentation. It categorizes the lead. A lead arriving from a paid ad and a lead arriving from organic search get different follow-up, because the context and appropriate next step differ.
  4. Routing. It determines whether this person goes directly into an appointment booking flow or into a nurture sequence, based on what the AI knows about their source, behavior, and stage in the decision process.
  5. CRM entry. It creates the patient record, establishes the pipeline stage, and populates the relevant fields.
  6. Notification. It alerts the practice through the appropriate channel with the relevant context already assembled.
  7. Correspondence. It determines what communication this person should receive: the type of message, the timing, the framing, based on everything the system knows.

The patient has no idea AI was involved. The practice never had to staff for any of it. By the time the front desk opens, the lead has been qualified, routed, and engaged appropriately.

What makes this architecture consequential is the interdependency. The AI making the attribution decision is the same system driving the follow-up workflow. The website that captured the inquiry feeds the same CRM that received the data. The lead scoring logic runs in the same platform as the email system. The system knows when a patient clicks a link, when a lead changes status, when a pipeline stage advances, because everything connects.

There is a practical question worth asking of any AI tool or platform a practice is considering: what does this connect to? What happens after the AI has done its part? If the output goes to an inbox and a human picks it up from there, the AI has moved one step in the workflow. The practices that get real value from AI have asked that question relentlessly, and built the answer into how their systems work.


The Staffing Math

The staffing crisis in healthcare is not improving, and the timelines are specific enough to make the problem concrete.

The National Center for Health Workforce Analysis projects a shortage of 141,160 physicians in the United States by 2038. In 2025 alone, the shortage stood at nearly 85,000. Healthcare worker turnover runs at 24 percent for nurses, and 92 percent of healthcare leaders report that staff well-being is deteriorating as a direct result of workforce pressure. More than 100 million Americans currently have no primary care provider.

This is the environment in which practices are trying to grow.

The conventional framing around AI and staffing is narrow: AI as a band-aid, answering phones when there are too few staff to cover the desk. The structural shift available to practices goes considerably further.

Administrative bandwidth determines how many patients a practice can serve. Clinical capacity rarely reaches its limit first. The constraints are the number of calls the front desk can field, the follow-ups a coordinator can manage, the reactivation campaigns someone has time to run. Those limits determine how much volume the practice can actually handle, and they grow more binding as the practice grows.

AI changes those limits in ways that additional staffing cannot replicate. A well-configured AI system answers calls at rates human staffing, within finite business hours, cannot approach. It covers the after-hours volume that has always been structurally inaccessible. It handles patient reactivation at scale without a coordinator spending hours on manual outreach. It runs follow-up sequences across hundreds of patient relationships simultaneously, without anyone managing each one individually.

“Administrative bandwidth determines how many patients a practice can serve. AI changes that ceiling in ways that additional headcount cannot match.”

The data on AI receptionist deployment is specific. Thirty-eight percent of healthcare practices have already deployed some form of AI phone handling, up from 12 percent in 2023. Practices report 27 percent increases in booked appointments after deployment. Each call that arrives after hours and is answered rather than lost to voicemail is worth between $125 and $350 in recoverable revenue, depending on specialty. Eighty-six percent of callers who reach voicemail do not leave a message. Those figures accumulate quietly and continuously.

The practices building AI infrastructure now are more efficient today. They are also more resilient: administrative staffing will continue to become more expensive and harder to maintain, and the workforce projections already show that trajectory.


The Larger Picture

There is a structural argument worth making directly.

For decades, the operational case for joining a medical service organization, or accepting the terms of a private equity acquisition, has included access to infrastructure that independent practices cannot build on their own. Centralized revenue cycle management. Credentialing and compliance operations. Marketing and patient acquisition systems with analytical depth. Staffing, HR, and operational reporting. The independent physician who wants to remain independent has historically had to accept that these capabilities require either significant internal investment or a structural trade.

AI is changing that calculation.

The agentic AI workflows being deployed into practice operations today reach billing and coding, revenue cycle management, HR functions, compliance monitoring, and operational reporting. The interfaces between AI systems and third-party and internally built platforms are making the operational infrastructure of a well-run practice something that can be built and maintained without the overhead structures that previously delivered it. By 2030, these operational functions will be largely AI-driven across the industry.

The practices building AI infrastructure in 2026 are positioning themselves for that future, without the structural trade it previously required.

The floor has moved. The ceiling is flying.


What This Requires, and Why It Matters Who Builds It

Building this infrastructure requires someone who understands both sides of what a medical practice actually is: the clinical environment that shapes how physicians and patients behave, and the technical architecture that determines whether systems communicate or operate in isolation.

The value comes from the connections. The system is built around AI: every component designed to communicate with the others, every input feeding the next step in the workflow. That design has to be intentional from the start.

This is why the clinical perspective matters as much as the technical one. Jason brings two decades of experience from inside a surgical practice: what a practice actually needs, what the patient journey looks like from the inside, and what a practice owner is actually trying to build, beyond the numbers on any dashboard. That perspective shapes how we approach the technology. The technology, by itself, is the easier part.

What we build at MDME is AI-driven practice infrastructure from the ground up. PracticeOS is the platform through which that infrastructure is delivered: the website, the AI systems, the CRM, the workflows, and the operational logic built together, configured for the practice, and maintained over time. We deploy website concierge AI and AI receptionists as part of that infrastructure, trained, configured, and connected to the CRM, the follow-up workflows, and the operational systems that act on what they learn.


Return to 9:47 that same evening. Same patient, same search, same intention to research quietly after the kids are asleep. This time, the practice is ready.

A concierge responds. It has been trained on everything the practice knows: every procedure, every expected outcome, every question patients typically bring at this stage of their research. The patient asks about recovery. They get a real answer. They ask about cost. That gets addressed. They ask whether this is even right for them. The conversation goes where it needs to go, for as long as it needs to, at 9:47 on a Tuesday night when no one at the practice could have taken that call.

By the time they close the laptop, they have not put it off. They have made contact.

Behind what the patient experienced, the infrastructure has already moved. The system identifies the source: a paid campaign targeting the specific procedure they asked about. It evaluates the inquiry and scores it: specific questions, sustained engagement, no friction in the exchange. High intent. It creates the CRM entry, establishes the pipeline stage, assembles the contact record. It routes a notification to the practice with the relevant context already attached. It generates the follow-up tasks. It triggers the automated sequence: the right message, at the right interval, calibrated to where this person sits in a decision cycle that has been running for months and just moved forward.

When the practice opens Wednesday morning, they know this person exists. They know what she asked. They know how to reach her, and something is already in motion.

That patient exists right now, in your market, tonight. She is searching on her phone while her family is asleep and your front desk is closed. The question worth sitting with is not whether patients like her are out there. It is whether your practice is ready when they arrive, or whether you find out they existed when they show up in a competitor’s waiting room.

FAQ

Frequently asked questions

What is the difference between an AI chatbot and an AI receptionist for a medical practice?

A chatbot is text-based, embedded on a website, where patients ask questions and leave contact information. An AI receptionist is voice-based and handles inbound phone calls, including scheduling, triage, and after-hours coverage. The more important distinction is what either tool connects to. A chatbot that drops leads into an email inbox has done one thing. A chatbot integrated with the CRM and follow-up workflows becomes part of the operational infrastructure.

Why do most leads for elective medical procedures arrive outside of business hours?

The decision to pursue an elective procedure is private and rarely made quickly. Patients researching cosmetic surgery, dermatology, or other elective care do so in the evening, on weekends, or during personal time — not during work hours. Web traffic data for plastic surgery and cosmetic practices consistently shows peak inquiry activity in evening hours. A practice available only during business hours is invisible to those patients at the moments they are most likely to act.

What does AI built from the ground up mean for a medical practice, compared to adding AI to an existing system?

When AI is added to an existing system, it handles one function and hands off to a process that knows nothing about what it learned. When AI is built as the foundation, the systems connect: the website feeds the CRM, the CRM drives the follow-up workflow, the workflow connects to the communication system. Information flows between components. A change in one part of the system is reflected across all of them. Architecture is what separates infrastructure from a collection of features.

Can AI replace a medical practice's front desk staff?

AI handles volume and consistency for specific categories of work: answering calls at any hour, managing after-hours inquiries, running reactivation sequences at scale. Experienced front desk staff provide judgment, clinical sensitivity, and the human engagement that complex patient situations require. The more accurate framing is that AI changes the ceiling on what a practice can handle with a given number of staff — a practice with well-deployed AI infrastructure can absorb significantly more volume without proportionally increasing headcount.

How are physicians currently using AI in their clinical work?

According to Doximity's 2026 State of AI in Medicine report, 63 percent of U.S. physicians are currently using AI in their clinical practice, up from 47 percent eight months earlier. The most common applications are literature search and ambient documentation. Physicians adopted these tools because they solved a specific, measurable problem — documentation burden. The lesson for practice operations is direct: AI adoption follows utility. Tools that earn consistent use remove something the practice feels every day.

What is an ambient AI scribe, and what does the data show about its impact?

An ambient AI scribe listens to a clinical encounter using natural language processing, then generates structured clinical documentation — SOAP notes, encounter summaries, referral letters — without the physician having to type or dictate. Studies document 10 to 15 minutes saved per encounter, charting time reduced by as much as 75 percent, and most physicians saving roughly an hour per day. A Texas Oncology study found documented diagnoses per encounter increased from 3.0 to 4.1 after adoption. Tools with the deepest EHR integration show the strongest results because the output becomes part of the patient record without additional steps.

What does AI workflow automation actually do in a medical practice?

Scale, consistency, and availability are what AI workflow automation provides that manual processes cannot match. AI can simultaneously evaluate dozens of inbound leads, route each according to its source and characteristics, create CRM records, trigger follow-up sequences, and determine what communication each patient should receive — at any hour, without the variability of a staffed workday. A human doing this work serially introduces delays and depends on availability. For a practice managing meaningful lead volume across multiple channels, the operational difference is substantial.

Is AI safe for a medical practice to use given HIPAA requirements?

HIPAA compliance is required for any AI system that touches patient information, and it is achievable with the right implementation. Compliant platforms use encryption at rest and in transit, maintain detailed audit logs, implement access controls, and require business associate agreements with covered entities. Before any AI deployment, practices should review the vendor's HIPAA compliance documentation specifically: how patient data is stored, who can access it, how long it is retained, and what happens to it if the relationship ends.

What operational functions do MSOs provide, and how does AI change the access equation for independent practices?

MSOs provide independent practices with centralized billing and revenue cycle management, credentialing and compliance operations, marketing and patient acquisition infrastructure, staffing and HR support, technology management, and payor contracting power. Historically, accessing this level of operational infrastructure required joining an MSO or accepting acquisition terms. AI-driven systems now deliver versions of many of these functions to independent practices: automated revenue cycle workflows, compliance monitoring, AI-powered marketing and patient acquisition, operational reporting, and agentic systems that handle administrative volume at scale.

What is the most common mistake practices make when implementing AI?

Deploying AI as isolated features rather than connected infrastructure. A chatbot not linked to the CRM. A scheduling tool that does not communicate with the appointment system. AI-generated content informed by no performance data. Each tool performs its individual function, then the process reverts to manual work because the AI has no connection to what comes next. The value in AI-driven practice operations comes from the connections between systems. The question worth asking of every AI deployment is not what this tool does, but what it connects to.