Faced with the monumental task of integrating operations after a merger that effectively doubled its size into a $3 billion system, Rady Children’s Health confronted a challenge that is becoming increasingly common in the healthcare sector: how to scale services and maintain financial stability without compromising its core mission. The recent merger with the Children’s Hospital of Orange County (CHOC) intensified the pressure to operate with peak efficiency. In response, the organization embarked on an ambitious path, choosing not to purchase an off-the-shelf solution but to develop its own private generative artificial intelligence platform. This strategic decision was guided by a clear principle articulated by John Henderson, the chief information and digital officer: “no margin, no mission.” The initiative represents a proactive effort to leverage cutting-edge technology not just as an innovative project, but as a foundational tool to drive value, streamline complex administrative processes, and ensure the long-term financial health required to deliver world-class patient outcomes across the newly expanded health system.
Engineering a Solution from the Ground Up
The decision to build a proprietary AI platform rather than purchase a commercial one was rooted in a careful financial analysis that concluded an in-house build was the more sound approach. By capitalizing on an existing partnership with Amazon Web Services (AWS), the health system gained access to Anthropic’s powerful Claude AI model, providing the technological backbone for its custom solution. The primary objective of this development is to create a radically simplified and seamless user experience. The vision is for employees to interact with a single, intuitive interface using natural language to execute a wide array of tasks. This approach is designed to make the complex and often cumbersome underlying enterprise systems, such as ERPs and Workday, functionally “irrelevant” from the user’s perspective. For instance, an employee can now complete a PTO request in Workday by issuing a simple command to the AI, bypassing the need to navigate multiple menus and screens. This focus on abstracting away complexity underscores a commitment to empowering staff and reclaiming valuable time for more critical responsibilities.
Redefining Workflows and Future Ambitions
The initial rollout of the platform has concentrated on high-impact administrative use cases to prove its value and refine its capabilities. Beyond simplifying HR tasks, the AI is currently used to generate job descriptions, create detailed vendor profiles, summarize lengthy documents, and provide quick access to information stored on the company intranet. However, these functions represent only the first step in a much broader strategic roadmap. The health system plans to significantly expand the platform’s utility with a forthcoming feature called “Ask the Data.” This powerful tool will empower staff at all levels to directly query sophisticated analytics dashboards for essential metrics, including real-time patient censuses, key quality measures, and up-to-date financials, all through simple, conversational language. While the immediate focus remains on perfecting administrative efficiency, the long-term vision involved a deliberate pivot toward clinical applications. This strategic foresight positioned the platform not merely as an operational tool but as a transformative resource destined for widespread adoption across the entire health system.
A Blueprint for a Self-Reliant Digital Future
The strategic commitment to develop a proprietary AI platform marked a pivotal moment for the health system, establishing a new model for technological self-reliance in the healthcare industry. This initiative was never viewed simply as a cost-saving measure; it was a fundamental investment in operational autonomy and future-readiness. The leadership team’s decision underscored a core belief that mastering advanced technology internally was essential for navigating the complexities of a rapidly evolving landscape and fulfilling the organization’s mission sustainably. By building a tool tailored precisely to its own workflows and long-term goals, the organization created a scalable and adaptable digital asset. This forward-thinking project established a powerful precedent, demonstrating how a healthcare provider could proactively engineer its own solutions to drive efficiency, empower its workforce, and ultimately fortify its ability to deliver exceptional patient care.
