# STAT+: What Medicare incentives for AI-based devices mean for tech companies — and hospitals > Source: > Published: 2026-08-13 08:30:00+00:00 **You’re reading Part 4 of Paying for AI,** a series examining how new clinical artificial intelligence tools influence the affordability of health care and patients’ long-term health. Here’s [Part 1](https://www.statnews.com/2026/04/15/coronary-artery-calcium-ai-opportunistic-screening-examined/), [Part 2](https://www.statnews.com/2026/05/12/ai-sepsis-detection-startups-challenge-epic-systems/), and [Part 3.](https://www.statnews.com/2026/07/16/cms-to-revamp-payments-for-clinical-software-ai/) For hospitals, the promise of artificial intelligence is financial as much as clinical. A hospital might deploy an AI device because it promises to throw up an alert that could save a patient’s life — but the technology is far more likely to stick if it proves it can drive down costs. Convincing hospitals and health systems that a new technology will provide that return on investment is tricky, though. So some AI startups have benefited from a temporary sweetener that helps customers get on board: Certain new technologies can apply to get add-on payments from Medicare for two or three years after they come to market. The tax-dollar-funded payments are meant as an incentive to help get new, expensive medical technologies to patients. ## This article is exclusive to STAT+ subscribers ### Unlock this article — and get additional analysis of the technologies disrupting health care — by subscribing to STAT+. Already have an account? [Log in](/login/) [View All Plans](https://www.statnews.com/stat-plus/)