Securing Supply Data and Staff Experience in Rural Healthcare With AI

Summary

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Podcast Summary

Becker’s Healthcare Podcast

Episode: Securing Supply Data and Staff Experience in Rural Healthcare With AI

Date: December 2, 2025
Host: Erica Spicer Mason (A)
Guest: Beth Steele, Chief Operating Officer, Owensboro Health (B)

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Episode Overview

This episode spotlights how Owensboro Health, a three-hospital rural system in Western Kentucky, is leveraging artificial intelligence (AI) to tackle significant surgical services challenges. Chief Operating Officer Beth Steele details their innovation journey, focusing on operational efficiency, workforce and supply issues, and the integration of AI-powered solutions—especially their adoption of Assist IQ’s technology for supply management in perioperative care.

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Key Discussion Points & Insights

1. Owensboro Health and Current Surgical Services Challenges

• Background

  • Owensboro Health covers 11 core counties in rural Kentucky but serves a broader region.
  • Beth Steele: 27 years’ nursing experience, strong surgical services background.

    “Owensboro Health is a three hospital healthcare system in Western Kentucky... I've been a nurse for about 27 years and have a love for the surgical services spaces.” (00:46)

• Industry-Wide Pressures

  • Major financial and operational headwinds, heightened for rural systems.
  • Workforce shortages — not just recruiting staff, but also retaining and supporting them.
  • Competing for provider talent in a tight market.
  • Managing inflation-driven supply costs, selecting cost-effective tech and equipment.

    “Operational efficiency is going to always be really important. But right now, you know, it comes down to how do you optimize your revenue and...decrease your expense.” (02:22) “Some of the biggest challenges, as everybody knows, and this is rural and urban alike... workforce issues. We have definite concerns around keeping our team members, not just recruiting them, but also retaining them...” (02:40)

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2. The Role of AI: Implementation and Measurable Impact

• Assist IQ Deployment

  • Owensboro Health adopted Assist IQ, a visual-AI supply tracking system (no barcodes).

  • Streamlines supply capture—nurses briefly display packaging in front of a visual field, and the system logs supplies and decrements inventory automatically.

  • Deep system integration: connects with EMR and supply management platforms.

    “We're using AI in a really new and cool way...it doesn't include barcodes. It's completely a visual system. It picks up on the packaging… it documents it within our electronic medical record, it decrements it from our supply system...” (04:22)

• Tangible Results

  • 99% accurate supply and implant capture.
  • 12% increase in billable revenue since deployment.
  • 90% drop in inventory depletion errors.
  • 48% reduction in expired products—direct reduction in waste.

    “We got US to a 99% accurate supply and implant capture rate...12% higher in our billable revenue...90% reduction in our inventory depletion errors...48% reduction in monthly expired products.” (04:22)

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3. Technology Partnership Considerations as a Rural System

• Vendor Selection and Collaboration
  • Focused on partners sharing their values/goals and voice in the process.
  • Sought vendors willing to genuinely listen and co-design solutions to match Owensboro's workflows.
  • Owensboro’s nimble structure enables faster innovation compared to larger systems.

    "For us, it's who has similar values and similar goals... who's willing to listen to what our challenges are and help us find joint solutions." (07:00) “My team is very connected to our administration team, we're very connected to our board. And so we're able to be incredibly nimble and to be great pioneers...” (07:16) “And that’s really what we got with Assist IQ—was a team that wanted to have excellent results. They had shared goals and they listened when we said… ‘this is a workflow we need to get right before we go live.’ And they did that.” (07:40)

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4. Preparing Surgical Teams for AI-Enabled Workflows

• Change Management Strategies
  • Involved surgical teams early and often—in design, implementation, feedback.
  • Empowered frontline staff (those closest to the work) as key stakeholders in workflow improvements.
  • Emphasized open communication to surface integration challenges and swiftly resolve them.

    “Get them involved in the beginning, the middle and the end. Right. Because they need to have every opportunity. I am not down in the operating room at this point, so I need my team, who’s there to be the experts helping...” (08:25) “Making sure that the communication is wide open and that everybody has the opportunity to raise a flag if they need to.” (09:13)

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5. The Future of High-Performing ORs: Holistic Excellence

• What Will Distinguish Tomorrow’s Top ORs?
  • Excellence across technology, cultural environment, quality, safety, and operational efficiency.
  • Focus on building places people want to work, not just on tech.
  • Balancing return on investment with overall value—including staff and patient experience.

    “It’s not just who’s doing the latest and greatest technology, it’s really how are you building your culture so that it’s a place that people want to work. So—making it ease of use, making it a wonderful environment to work in... making smart decisions along the way.” (10:20) “It can't just be looking at the numbers. It has to be the whole package. So that's my adoption mantra for the future.” (11:18)

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Notable Quotes & Memorable Moments

• On Supplier Data Capture with AI:

  “This system has allowed our team to do it in probably about as easy a way as you can imagine... it has allowed us to be 12% higher in our billable revenue. We’ve had a 90% reduction in our inventory depletion errors. And we’ve had a 48% reduction in monthly expired products.” — Beth Steele (04:22)

• On the Power of Rural Innovation:

  “We have the opportunity to be without some of the hoops that larger systems have...We're able to be incredibly nimble and to be great pioneers.” — Beth Steele (07:13)

• On Preparing for Transformation:

  “Get [the staff] involved in the beginning, the middle and the end... I am not down in the operating room at this point, so I need my team who’s there to be the ones, the experts helping explain their current workflow and how it could be better.” — Beth Steele (08:28)

• On What Sets the Future Apart:

  “To me, it’s the whole package... Operational excellence really gets you to a great space financially. But you have to have all the components in play... It can't just be looking at the numbers.” — Beth Steele (11:12)

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Key Segment Timestamps

• Introduction and Beth Steele's Background: 00:00–01:41
• Current Rural Surgical Service Challenges: 01:41–03:55
• Role and Outcomes of AI (Assist IQ): 04:22–06:21
• Selecting Technology Partners as a Rural System: 07:00–08:03
• Team Preparation & Lessons in Change Management: 08:25–09:30
• Vision for Future High-Performing ORs: 10:20–11:26
• Closing Reflections and Final Thoughts: 11:26–12:00

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Takeaways for Listeners

• Rural and regional systems can drive meaningful innovation—even with tighter resources—by leveraging AI thoughtfully and partnering collaboratively.
• Focusing on both technological and cultural transformation is crucial for future-ready operating rooms.
• Engaging frontline staff early and ensuring open communication are core to successful tech adoption.
• Measurable benefits (financial, operational, experiential) are achievable and compelling for systems of all sizes.

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Transcript

[A]

Hello, everyone. This is Erica Spicer Mason with Becker's Healthcare. Thank you so much for tuning into the Becker's Healthcare podcast series today. So today we're going to focus on talking about how Owensboro Health is navigating surgical service challenges through innovation and AI. And we'll learn about their focus on enhancing performance, improving workflows, and empowering care teams. And Beth Steele, the Chief Operating Officer at Owensboro Health, is going to walk us through this transformation. Beth, welcome to the podcast. Thank you so much for making time for Beckers today.

[B]

Thank you. I'm happy to be here.

[A]

We're really happy to have you. And to get us started, would you mind sharing just a little bit more about your background, your work at Owensboro Health, and really what's driving your focus as COO today?

[B]

Yeah, happy to. So Owensboro Health is a three hospital healthcare system in Western Kentucky. We do serve a pretty rural area. We have what we call 11 core counties, but a much larger service area than that that my background is. I'm a nurse by trade. Very proud of that. And I grew up in surgery, so I've been a nurse for about 27 years and have a love for the surgical services spaces and how to improve those areas. They're vitally important right now, especially to healthcare systems and to hospitals, especially. As we are navigating our financial headwinds, surgery becomes incredibly important and so forth for us. The focus right now is to ensure that we're operating as well and as efficiently as we can, using the resources we can. And so I'm excited to talk to you about this today.

[A]

We're so excited to get your perspective, Beth, especially as a smaller rural system. I think this is a really important. It's something very important to highlight that rural and smaller systems can transform and innovate as well. So I'm excited to have you walk us through that. But I want to back up briefly just to acknowledge something you'd mentioned in your introductory remarks. You mentioned how rural and regional systems are navigating some pretty significant financial pressures or headwinds, as you said, as well as operational pressures. So I'd love to know within surgical services, what have been the most pressing challenges for you at Owensboro and how are you addressing them right now?

[B]

Sure. So, I mean, operational efficiency is going to. To always be really important. But right now, you know, it comes down to how do you optimize your revenue and how you. How do you decrease your expense. And some of the biggest challenges, as everybody knows, and this is rural and urban Alike. Right. Is workforce issues. We have definite concerns around keeping our team members, not just recruiting them, but also retaining them, making sure that their workflows and processes are really efficient and they feel like they have a part in the team. And then our providers, we have an opportunity right now to really be competitive within the market for providers. And so both those things are really challenging us from a workforce standpoint. But then the other issues that we're facing are supply costs. I think everybody's very well aware what's happening with inflation. I don't think I have to really give that economic update. But our supply costs are incredibly important, especially within the or. And then the technology and equipment piece. There's so many things that we could purchase, so many opportunities out there, and knowing which ones and what's the best direction to go. Anything that helps us with really building that plan and becoming as efficient as we can. Those are the things that we know are challenging us and. And where we need to go as far as what kind of solutions we need.

[A]

Hmm. Beth, thank you so much for sharing. And I'm sure the workforce issues and the supply cost challenges that you've mentioned are. I'm sure many systems relate to those challenges, and I'd love to know how AI has played a role in navigating those issues. And if you've leveraged AI at Owensboro Health, what impact have you seen so far on performance, workflows, or even staff experience?

[B]

Yeah. So I'm happy to discuss the work that we've done with Assist iq. So this technology has allowed us to really be what I call pioneers in this space. So we're using AI in a really new and cool way. I think as a person who has been in the operating room and understands how difficult it is to document and capture supplies, this system has allowed our team to do it in probably about as easy a way as you can imagine. It doesn't include barcodes. It's completely a visual system. It picks up on the packaging. So our circulating nurses really just have to put a piece of the package in front of the field. And it not only picks up on what that supply is, but it documents it within our electronic medical record, it decrements it from our supply system, and it also allows us to then capture a lot of data on the back end to become more efficient. So all those things with just a quick capture and as simple as using an iPad. So it's about as easy as a process can be. What that has done for us is it has got US to a 99% accurate supply and implant capture rate and I did say 99%. It was as we went live with this technology, it has allowed us to be 12% higher in our billable revenue. We've had a 90% reduction in our inventory depletion errors. So our supply chain team loves us for this. And we've had a 48% reduction in monthly expired products and you can imagine 48% reduction in expired products. That is 48% reduction in waste. So really great outcomes.

[A]

Yeah, fantastic. And I appreciate how you also clarified 99% supply and implant capture rate among the other metrics. Beth, really compelling numbers that you're seeing as a result here. And I'm curious to learn more, a bit, a bit about the partnership as well. I know when you're a smaller system, especially one that may be less resourced compared to some of the bigger multi state, multi region health systems, you really have to be selective with who you're partnering with. So how did Owensboro approach evaluating the tech partnership and, and determining that it was the right fit?

[B]

Well, I think for us it's who, who has similar values and similar goals. And then the other big piece is who's willing to listen to what our challenges are and help us find joint solutions. So our team is incredibly nimble. I think you talked about the rural health systems and our place and innovation. I think we're, we have the opportunity to be without some of the hoops that larger systems have. And so, you know, my team is very connected to our administration team, we're very connected to our board. And so we're able to be incredibly nimble and to be great pioneers. That being said, we want a company and a group that's going to come along with us and really listen to what our team is trying to do. And that's really what we got with Assist. IQ was a team that wanted to have excellent results. They had shared goals and they listened when we said, hey, this is a workflow we need, we need to get right before we go live. And they did that.

[A]

It's great to hear. Thank you, Beth. And I appreciate your note about how your teams are so very connected and sounds like you have a lot of great internal collaboration going on as well. So how did you prepare your teams, especially surgical staff, for that shift to AI enabled workflows and what lessons or surprises came out of that process?

[B]

Well, I think you mentioned collaboration, so it's really important to get the team that's going to be using it and the teams that know this work the Best involved very early. So I always say get them involved in the beginning, the middle and the end. Right. Because they need to have every opportunity. I am not down in the operating room at this point, so I need my team, who's there to be the ones, the experts helping explain their current workflow and how it could be better. So definitely having them involved in the scenarios, asking for upgrades and then, you know, the lessons we learned along the way is definitely every time you're working with not only a vendor and then our own team, there's also the complexity of making sure that you're integrating it with your EMR or other, other systems. And so really just understanding how you're bringing all those teams together, making sure that the communic wide open and that everybody has, has the opportunity to, to raise a flag if they need to.

[A]

Yeah, wide open communications, that's definitely a through line. I've heard in other conversations about embedding new tools, especially AI capabilities. So appreciate you outlining those best practices, Beth. And to kind of close this out, I wanted to take a moment to reflect on how, you know, you've had very granular and hands on work and experience in the surgical space and now you're leading teams that are in the or and you kind of have that high level perspective now as well. So I'm curious to know, when you reflect on everything that you've done in this space, what do you think will most distinguish future high performing ors from those of today? Especially as we're seeing policy and reimbursement dynamics evolve pretty rapidly.

[B]

Sure. So I do, I do think it's the teams who are going to be able to have excellence in all of their areas. And it's not just, you know, who's doing the latest and greatest technology, it's really how are you building your culture so that it's a place that people want to work. So, you know, making it ease of use, making it a wonderful environment to work in. I think it's ensuring that you have quality and safety at the forefront and watching your patient experience and then finally, you know, making sure that you're, you're making smart decisions along the way. So I mean to me it's the whole package. It's really what we all know to be true, which is operational excellence really gets you to a great space financially. But you have to have all the components in play. I think that for the future our teams are going to have to always keep an eye on what's your return on investment and it can't just be looking at the numbers. It has to be the whole package. So that's my adoption mantra for the future.

[A]

I think it's such a sound observation and, and one that I think our listeners will certainly take back and reflect on. So, Beth, it's been a real pleasure getting to know you on this podcast and hearing your experiences. Anything else that we didn't touch on today that you wanted to highlight for listeners or a final thought?

[B]

No, I'm just really thankful. Thankful for the partnership and encourage everyone out there to be working just like this on collaborating and ensuring that they're talking to their teams and seeing what those barriers are and then how do they solve those problems one at a time?

[A]

Beth, well, thank you again for making time for this conversation and for your insights today. I really appreciate it.

[B]

Thank you.

[A]

We'd also like to thank our podcast sponsor for today's episode, Assist IQ listeners. Be sure to tune into more podcasts from Becker's by visiting our podcast page at beckershospitalreview. Com.