How to Evaluate AI Vendors for Your Medical Practice

The AI vendor landscape is overwhelming.

Hundreds of companies claim to offer AI solutions for healthcare. Some are legitimate, proven solutions. Others are startups with slick demos and unproven technology. Some understand healthcare deeply; others are general-purpose AI tools hastily repackaged for medical practices.

Choosing wrong is expensive—not just in direct costs, but in wasted implementation time, staff frustration, compliance risks, and opportunity costs. Here’s a practical framework for evaluating AI vendors.

Start With Your Problem, Not the Technology

Before evaluating any vendor, clearly define:

What problem are you trying to solve?

• Be specific: “Reduce prior authorization time” not “improve efficiency”
• Quantify if possible: “We spend 14 hours/week on prior auth”
• Understand the root cause: Is it really an AI problem or a process problem?

What would success look like?

• Measurable outcomes: “50% reduction in prior auth time”
• Timeline: “Within 6 months of implementation”
• Secondary benefits: “Staff can handle 30% more patient volume”

What constraints do you face?

• Budget limitations
• Integration requirements
• Staff capabilities
• Timeline pressures
• Compliance requirements

This clarity helps you evaluate vendors against your actual needs rather than their marketing claims.

The Evaluation Framework

Evaluate vendors across five dimensions:

1. Problem-Solution Fit

Does their solution actually solve your problem?

Questions to ask:

• Can you describe exactly how your solution addresses [specific problem]?
• What results have similar practices achieved?
• What problems does your solution NOT solve?
• How does this compare to non-AI approaches?

Red flags:

• Vague answers about how the technology works
• No references from similar practices
• Claims that seem too good to be true
• Solution seems like a technology looking for a problem

Green flags:

• Clear explanation of capabilities and limitations
• Specific case studies from relevant practices
• Honest about what it can and can’t do
• Deep understanding of your specific challenge

2. Healthcare Expertise

Do they understand medical practice operations?

Questions to ask:

• How many medical practices use your solution?
• What specialties do you have experience with?
• Who on your team has healthcare background?
• How do you stay current with healthcare regulations?

Red flags:

• Healthcare is a new market for them
• No healthcare-specific personnel
• Unfamiliar with common EHR systems
• Don’t understand healthcare workflows

Green flags:

• Significant healthcare customer base
• Experience with your specialty
• Clinical and/or healthcare IT expertise on team
• Understand healthcare-specific terminology and workflows

3. Compliance and Security

Can they meet HIPAA requirements?

Questions to ask:

• Will you sign a BAA?
• What security certifications do you have?
• Where is data stored and processed?
• How do you handle breach notification?
• Can you provide a security questionnaire or audit report?

Red flags:

• Hesitation about BAA
• No security certifications
• Vague about data handling
• No healthcare clients (so no compliance track record)

Green flags:

• BAA readily available
• SOC 2 Type II and/or HITRUST certification
• Clear data handling documentation
• Experience with healthcare compliance audits

Learn more about AI and HIPAA compliance →

4. Integration and Implementation

How will this work with your existing systems?

Questions to ask:

• How does your solution integrate with [your EHR]?
• What’s the typical implementation timeline?
• What resources are required from our side?
• What training is provided?
• What ongoing support is included?

Red flags:

• No experience with your EHR
• Implementation timelines that seem unrealistic
• Significant IT resources required that you don’t have
• Training and support cost extra
• High implementation failure rate (ask!)

Green flags:

• Proven integration with your systems
• Realistic implementation timeline with clear milestones
• Reasonable resource requirements
• Comprehensive training included
• Ongoing support included in pricing

5. Company Viability

Will this company be around in 3 years?

Questions to ask:

• How long have you been in business?
• What’s your funding situation?
• How many employees do you have?
• What’s your customer retention rate?
• What happens to our data if you go out of business?

Red flags:

• Brand new company with no track record
• Burn rate exceeds revenue significantly
• High customer churn
• No plan for business continuity
• Evasive about financial stability

Green flags:

• Multi-year track record
• Sustainable business model
• Strong customer retention
• Clear data portability options
• Financially stable or well-funded with clear path to sustainability

The Demo Process

Demos are where vendors shine—and where you need to look past the polish.

Before the Demo

• Send your specific use cases in advance
• Request they demo with realistic scenarios
• Prepare questions specific to your needs
• Invite staff who will actually use the system

During the Demo

• Watch for scripted vs. flexible demonstrations
• Ask them to show scenarios they didn’t prepare
• Note how they handle questions they can’t answer
• Pay attention to actual workflow, not just features

Questions to Ask During Demo

• “Can you show me how this handles [unusual situation]?”
• “What happens when [thing goes wrong]?”
• “How would a new staff member learn to use this?”
• “Can you show me the reporting/analytics?”
• “What does the admin interface look like?”

After the Demo

• Debrief with your team immediately
• Document questions that weren’t answered
• Request recorded demo for others to review
• Ask for sandbox access to test yourself

Reference Checks

Don’t skip references—but do them right.

Ask the Vendor For

• 3-5 references from practices similar to yours
• At least one reference who’s been a customer 12+ months
• Contact information for direct conversation (not just case studies)

Questions for References

About implementation:

• How long did implementation actually take?
• What challenges did you encounter?
• Did the vendor deliver what they promised?

About ongoing use:

• How has the system performed over time?
• How responsive is support?
• Have there been any reliability issues?

About results:

• What measurable results have you achieved?
• Would you choose them again?
• What do you wish you’d known before buying?

What References Won’t Tell You

• They’re likely selected because they’re happy
• They may have different needs than you
• Your implementation will be different

Use references to validate, not to make the decision.

Pricing Evaluation

AI pricing models vary significantly:

Common Pricing Models

Per-user/per-seat: Fixed monthly cost per user

• Good for: predictable budgeting
• Watch for: costs scaling quickly as you add users

Per-transaction: Cost per authorization, per conversation, etc.

• Good for: paying only for what you use
• Watch for: costs escalating with high volume

Subscription tiers: Packages with different feature sets

• Good for: choosing appropriate capability level
• Watch for: needed features only in expensive tiers

Custom enterprise pricing: Negotiated based on your needs

• Good for: larger practices with negotiating power
• Watch for: lack of transparency, future price increases

Total Cost of Ownership

Don’t just compare sticker prices. Consider:

• Implementation costs
• Training costs
• Integration costs
• Ongoing support costs
• Internal IT time required
• Potential costs if switching vendors

ROI Calculation

For each vendor, calculate:

• Expected benefits (time saved × hourly cost, etc.)
• Total costs (subscription + implementation + ongoing)
• Payback period
• 3-year ROI

A more expensive solution with better results may be cheaper in the long run.

The Pilot Question

Should you pilot before committing?

Arguments for Piloting

• Reduces risk of large commitment
• Tests actual fit with your environment
• Builds staff buy-in
• Identifies issues before full rollout

Arguments Against Piloting

• Delays full benefits
• Pilot environments may not reflect production
• Staff may not take pilot seriously
• Some solutions don’t work well in limited scope

Pilot Best Practices

If you do pilot:

• Define clear success criteria upfront
• Set a realistic timeline (60-90 days typically)
• Involve actual end users
• Measure against baseline
• Have a decision framework for go/no-go

Making the Decision

After evaluating vendors:

Create a Decision Matrix

Score each vendor (1-5) on:

• Problem-solution fit
• Healthcare expertise
• Compliance/security
• Integration/implementation
• Company viability
• Pricing/ROI

Weight each category based on your priorities.

Involve Key Stakeholders

Who should have input:

• Practice leadership (strategic fit, budget)
• IT/technical staff (integration, support)
• End users (usability, workflow)
• Compliance/legal (risk assessment)

Document Your Decision

Record:

• Vendors evaluated
• Evaluation criteria
• Scores and rationale
• Final decision and why

This documentation helps if the decision is questioned later.

Contract Considerations

Before signing:

Key Terms to Negotiate

• Implementation timeline with milestones
• Performance guarantees
• Data ownership and portability
• Exit provisions
• Price increase limitations
• Support level agreements

Terms to Watch Out For

• Auto-renewal with price increases
• Penalties for early termination
• Vendor-favorable data ownership
• Limited liability provisions
• Broad indemnification requirements

Get Legal Review

For significant contracts, have legal counsel review:

• BAA terms
• Data provisions
• Liability limitations
• Exit terms

After the Decision

Choosing a vendor is just the beginning.

Implementation Planning

• Assign internal project owner
• Set clear milestones
• Plan for training and change management
• Establish success metrics

Ongoing Management

• Regular performance reviews
• Relationship management with vendor
• Continuous optimization
• Stay aware of vendor company health

The Bottom Line

Evaluating AI vendors requires more diligence than evaluating typical software. The technology is newer, the vendor landscape is volatile, and the compliance stakes are high.

Take your time. Do your homework. Check references. Pilot if possible. And remember: the best technology is worthless if it doesn’t solve your actual problem.

Need Help Evaluating AI Vendors?

We help medical practices navigate the AI vendor landscape and make informed decisions.

Contact us for an AI consultation →

Or call us directly: (678) 824-2420

Learn more about our AI services →