Solving Baumol's Cost Disease, in Healthcare - a16z

Why does the cost of education and healthcare services continue to rise rapidly, while the cost of goods rise much more slowly? According to economics theory, wages rise when there’s greater productivity; but a rise without an increase in productivity is referred to as “Baumol’s Cost Disease” .. While this has long been an issue in healthcare, for many good and bad reasons, the cure involves bringing more artificial intelligence (AI) to the industry. AI creates a new opportunity: to transform services into goods.