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Nexio Global Media > Business > US Medicare Launches AI-Driven Payment Model to Transform Healthcare Outcomes, BBC Reports
Business

US Medicare Launches AI-Driven Payment Model to Transform Healthcare Outcomes, BBC Reports

Nexio Studio Newsroom
Last updated: May 12, 2026 10:55 pm
By Nexio Studio Newsroom 6 Min Read
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AI-Driven Healthcare Revolution: Pair Team Leads the Charge in Medicare’s ACCESS Program

In the bustling ecosystem of Silicon Valley, where flashy startups often dominate headlines, Neil Batlivala has quietly spent seven years building Pair Team—a healthcare company tackling a challenge many tech innovators overlook: improving healthcare outcomes for underserved populations. Last month, Batlivala’s work catapulted him into the spotlight as Pair Team was selected to participate in ACCESS, a groundbreaking Medicare program designed to reshape healthcare delivery using artificial intelligence.

A Bold New Vision for Medicare
ACCESS—short for Advancing Chronic Care with Effective, Scalable Solutions—is a decade-long initiative by the Centers for Medicare & Medicaid Services (CMS) that aims to test AI-driven models of care. Launched on April 30, the program will go live on July 5, with Pair Team among 150 participants chosen to help redefine how healthcare is delivered to Medicare beneficiaries.

Unlike traditional Medicare reimbursement models, which compensate clinicians based on time spent with patients, ACCESS introduces a novel payment structure focused on health outcomes rather than procedural activities. Participating organizations like Pair Team receive predictable payments for managing chronic conditions such as diabetes, hypertension, obesity, and mental health disorders, with full reimbursement contingent on patients achieving measurable health goals like lower blood pressure or reduced pain.

“This is a payment model transformation,” Batlivala said in a recent interview. “For the first time, we’re being rewarded for outcomes, not just activities. This opens up entirely new possibilities for AI-driven care.”

Pair Team’s Unique Approach
Founded in 2019, Pair Team was built with a specific mission: to address the healthcare needs of patients managing chronic conditions while navigating social determinants of health such as unstable housing, food insecurity, and lack of transportation. Roughly a third of Americans fall into this category, yet they are often overlooked by traditional healthcare systems.

Pair Team’s model integrates medical, behavioral, and social care, employing approximately 850 clinical professionals and operating what it describes as California’s largest community health workforce. The company’s approach has garnered peer-reviewed recognition; a study co-authored by Pair Team researchers and published in the Journal of General Internal Medicine showed significant reductions in avoidable emergency room visits and inpatient hospitalizations among patients in its care.

However, delivering this level of care has historically required extensive human resources, limiting scalability. Nine months ago, Pair Team introduced Flora, an AI-powered voice agent designed to handle patient intake, coordinate referrals, and conduct check-ins—tasks that are traditionally labor-intensive. Flora has already demonstrated its potential, engaging patients in conversations that go beyond clinical care to address loneliness and isolation.

“Flora was probably the only ‘person’ she’d talked to in weeks about her situation,” Batlivala recalled, referring to a 67-year-old patient living in her car and managing PTSD and congestive heart failure. “That’s the companionship piece—and it turns out that is truly an intervention.”

The Broader Implications of ACCESS
The ACCESS program represents a significant departure from previous CMS initiatives. Designed by Abe Sutton and Jacob Shiff—both former startup operators with backgrounds in healthcare innovation—the program emphasizes outcome-based payments, direct-to-consumer enrollment, and competition among participants.

However, the program is not without risks. Participants must navigate the complexities of feeding sensitive patient data into a federal infrastructure with a history of breaches, including exposed Social Security numbers. Financial concerns also loom large; a 2023 Congressional Budget Office analysis found that CMS innovation programs have historically increased federal spending rather than generating savings. Additionally, reimbursement rates under ACCESS are lower than many participants anticipated, placing pressure on organizations to automate patient interactions to remain viable.

Batlivala views these challenges as integral to the program’s success. “If you want to build a model that truly incentivizes the use of AI, the reimbursement rates have to be low,” he explained. “The economics only work if you’re running a lean, AI-first operation.”

A Growing Ecosystem of Innovation
Pair Team’s selection for ACCESS comes amid a surge of interest in AI-driven healthcare solutions. Digital health funding reached its highest Q1 total since the pandemic this year, with AI companies capturing a significant share. Yet, ACCESS has remained largely under the radar, overshadowed by more conventional healthcare innovations.

With partnerships giving it access to approximately 500,000 potential patients, Pair Team aims to reach one million within three years—a goal that aligns with the broader ambitions of the ACCESS program.

A Balanced Outlook
As Pair Team and its peers embark on this ambitious journey, the stakes are high. Success could pave the way for a more efficient, equitable healthcare system that leverages AI to address both medical and social needs. Failure, however, could reinforce skepticism about the role of technology in healthcare.

For now, Batlivala remains optimistic. “The government is creating swim lanes for AI innovation in traditionally regulated industries,” he said. “The best solution wins—and that’s exactly how it should be.”

Ultimately, the ACCESS program represents a bold experiment in healthcare innovation—one that could redefine the role of AI in addressing some of the most pressing challenges facing patients today.

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