Healthcare practices short-staffed, wary of AI, survey finds | Insurance Business
Healthcare practices short-staffed, wary of AI, survey finds
A Weave survey of 285 practices finds staffing gaps are now cutting patient volume, while data privacy blocks AI adoption
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Benefits
Aug 21, 2026
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Nearly two-thirds of dental, medical, optometry, and veterinary practices are short-staffed in 2026. For roughly one in four, the shortages are now severe enough to reduce patient volume. That is the central workforce finding in Weave’s 2026 State of Healthcare Pulse Survey
Weave, a NYSE-listed AI-powered patient engagement and payments platform, surveyed 285 practice owners, office managers, and front desk staff. Sixty-four percent of respondents reported staffing shortages in the past 12 months. Forty-eight percent are dealing with active shortages now. More than half of practices take three or more weeks to fill a front desk role
The staffing pressure compounds on itself. When a role sits vacant, the remaining team absorbs the manual workload. Sixty-three percent of respondents already spend an hour or more each day on data entry alone
Burnout follows attrition, and attrition feeds further vacancies. The MGMA DataDive Practice Operationsreport found front office support staff in medical group settings turned over at a rate of 40% in 2022, the most recent year the association has published that specific figure. For benefits brokers advising small healthcare employer clients, that cycle is a total rewards problem as much as an operational one
Eighty percent of respondents said duplicate data entry affects their workflow. Seventy percent are not running an integrated software stack, which forces staff to re-enter the same patient detail across disconnected systems. The tasks practices most want to automate cluster around the front desk: scheduling and confirmations (49%), insurance verification (46%), and billing reminders (41%)
AI interest high, trust low
Technology is the proposed fix, but patient data concerns are slowing adoption. Forty-one percent of practices have already adopted some AI workflows. Another 33% have considered AI tools without committing
HIPAA and data privacy concerns top the list of adoption barriers at 60%, followed by AI output quality (51%), and regulatory uncertainty (35%). The regulatory concern has a concrete basis. The HHS Office for Civil Rights issued guidance in 2024 requiring HIPAA-covered entities to identify and mitigate discrimination risks when using AI tools, with enforcement active from May 2025. A separate Security Rule overhaul – the first major update in 20 years – is expected to be enforceable by late 2026 or early 2027, eliminating the distinction between required and addressable safeguards for any system handling patient data.
“Don’t mistake their caution about AI for reluctance,” said Marcus Bertilson, COO and head of product at Weave. “It’s a rational response to a market that hasn’t yet earned their trust with patient data. The opportunity belongs to whoever earns it.”
Among practices that automated workflows in 2025, results were concrete: 41% reported improved team productivity, 39% said automation reduced no-shows and cancellations, and 29% reported reduced staff workload and burnout. Eighty-two percent said AI had no meaningful impact on staffing levels, a sign the technology is augmenting teams rather than thinning them
The finding that 58% of practices have no formal AI governance structure sits uneasily against that regulatory backdrop. Practices adopting AI tools without governance protocols are not only exposing patient data – they are entering a compliance environment that broader employer workforces are also navigating as AI reshapes benefits and HR functions
For brokers with healthcare employer clients losing front desk staff to burnout, the question is whether benefits design is treating that attrition as a cost. Research has shown that burnout prevention and mental health spending are undertreated at smaller employers even as absenteeism and turnover costs compound. A practice refilling the same front desk role repeatedly is absorbing those costs without accounting for them
