JPM24: Option Care Health taps Palantir's AI for nurse scheduling, supply chain

Option Care Health, a provider of post-acute care and infusion services, inked a multi-year partnership with analytics company Palantir Technologies to use its artificial intelligence platform across its operations.

The provider of home and alternate site infusion services will use Palantir's Artificial Intelligence Platform (AIP), which incorporates AI and large language models, to optimize nurse scheduling, patient onboarding, purchasing and supply chain execution, among other use cases, the company announced Monday morning at the J. P. Morgan Healthcare Conference.

“Utilizing Palantir’s Foundry and AIP will allow us to innovate rapidly, build on best practices and ensure our approach to AI and machine learning adheres to the highest standards, incorporates the strongest foundations and provides the best protections and integrity," John Rademacher, president and CEO of Option Care Health. Foundry is an operations platform that brings together data and analytics.

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Palantir has been expanding deeper into healthcare and adding new health systems and provider partners.

The company has inked eight contracts with health systems to use its AI-based software AIP to improve patient flows and staffing, the Denver Business Journal reported.

Its partners include Cleveland Clinic, Tampa General Hospital, HCA Healthcare, Lifepoint Health and Hone Health. The company has signed three other partnerships with health systems that have not yet been publicly announced, the publication reported.

A year ago, Cardinal Health announced a strategic collaboration with Palantir Technologies to design a clinically integrated supply chain solution for live purchasing decision support of pharmaceuticals for health systems and hospitals.

The company told CNBC that Palantir for Hospital Operations accounts for 10% of its commercial revenue in the U.S.

Palantir’s software is also used across a number of government health organizations, including the National Institutes of Health and the U.K.‘s National Health Service, according to the company.

Palantir's AIP enables organizations to bring the power of large-language models, and other AI technology, to their enterprise networks, private data and core operations, according to the software company. The platform is designed to bring in siloed and disconnected data sources, logic assets and systems of action into a single common operating picture, enabling users to optimize their decision-making.

"Option Care Health is at the leading edge of deploying artificial intelligence across the healthcare sector," said Alex Karp, co-founder and chief executive officer of Palantir Technologies in a statement. "We are proud to support this effort, which builds on our expanding presence in and commitment to the medical sector and will expedite and improve services to patients across the country."

Option Care Health said its use of Palantir’s software will help optimize visits per day and increase patient’s face time with clinicians, reduce administrative burden and ensure stockage of drugs and medical supplies while preventing overstocking.

The company says it serves more than 220,000 patients a year across all 50 states with 7,500 team members including more than 4,500 clinicians.

Back in May, Option Care Health was poised to become a massive provider of post-acute care services with a proposed $3.6 billion merger with home health and hospice firm Amedisys.

That deal was scrapped when UnitedHealth Group outbid the company. That deal, valued at $3.7 billion, is still pending.