What Adam Is Reading
Jevons in Scrubs
A NEJM Perspective argues that AI will grow the clinical workforce rather than shrink it. The economics are real. The analogy has a leak.
Single source review with counterpoints · NEJM Perspective · 11 sources · September 13, 2026

The piece is "Artificial Intelligence and the Future of the Clinical Workforce," a New England Journal of Medicine Perspective published online September 12, 2026 and dated to the September 17 print issue (N Engl J Med 2026;395:1041, DOI 10.1056/NEJMp2607831).

The author is Dhruv Khullar, MD, MPP. He is a physician and health policy researcher at Weill Cornell, with two listed affiliations on the byline: the Division of Health Policy and Economics in the Department of Population Health Sciences, and the Division of General Internal Medicine in the Department of Medicine. Weill Cornell's newsroom lists him as an associate professor of population health sciences and a practicing hospitalist at NewYork Presbyterian. He is also a staff writer at The New Yorker, which shows in the prose. Disclosure forms are posted at NEJM.org. There is no stated industry funding and no conflict disclosed in the printed text.

The argument is a single sustained contrarian move. Everyone expects AI to shrink the clinical workforce. Khullar thinks the economics point the other way, and he builds the case on three borrowed ideas: the Jevons paradox, the lump of labor fallacy, and the task versus skill distinction from labor economics. He closes with O-ring theory, the observation that in tightly coupled processes a small failure anywhere wrecks everything, so the value of the remaining human steps goes up rather than down.

It is a good essay. It is also a set of analogies doing heavy work, and analogies are where I want to spend the review.

The three legs, in one paragraph each.

Jevons: cheaper steam engines burned more coal, not less. Cheaper cataract surgery produced more cataract surgery. Cheaper cognition may produce more medicine.

Lump of labor: there is no fixed quantity of clinical work to be divided up. Demand already exceeds supply (roughly a quarter of Americans live in a primary care shortage area), so AI extends clinicians before it substitutes for them.

Tasks are not skills: a surgeon decides, operates, and documents. Automate the documentation and you have automated a task, not a job. And under O-ring dynamics, automating the cheap steps raises the price of failure in the expensive ones.


Section by section
1
The Jevons paradox will expand demand for clinical labor
What holds up

The mechanism is real and the health care examples are well chosen. Phacoemulsification made cataract surgery fast and safe and volumes rose. Joint replacement followed the same curve. Genetic testing and MRI both got cheaper and both got used more. Khullar is careful to add the condition that actually governs the result: the effect depends on price and on who captures the value, and systems sold at prices that let vendors keep most of the surplus will not stimulate much new demand.

Where it leaks

Jevons requires that the buyer face the price. A mill owner bought his own coal. American patients do not buy their own care, and the entity that does is working from a budget rather than a demand curve. Between prior authorization, network design, global budgets, and capitation, third party payers exist in part to prevent exactly the elasticity Jevons describes. Cheaper production of care does not automatically become more purchased care when purchasing is rationed on purpose.

The dialysis world is the clean counterexample. Under a bundled per treatment payment, and more so under a capitated total cost of care arrangement, the payer's stated objective is fewer encounters, fewer admissions, fewer sessions in a chair. Give that system a tool that reduces the labor per patient and it does not buy more labor. It books the savings. Jevons runs backwards under capitation, which is roughly a third of Medicare and a growing share of everything else.

Mostly Solid
2
Baumol's cost disease, and the string quartet
What holds up

The framing is correct and usefully explains why health care and education got expensive while televisions got cheap. Wages in labor intensive sectors have to keep pace with wages in sectors that actually gain productivity, or the workers leave.

Where it leaks

The example he borrows works against him. A string quartet is expensive because four people have to play for forty minutes. Recording did not fix that. It went around it, and the result was that recorded music became ubiquitous and inexpensive while the number of people earning a living as performing musicians did not grow to match. Consumption exploded. Employment did not follow it up. That is the honest version of the analogy and it is a contraction story, not an expansion one.

There is a second problem underneath. Baumol's cost disease operates on wages, not on headcount. If AI cures health care's cost disease, the mechanism by which it does so is slower wage growth for clinicians. You can hold headcount flat, or even grow it, and still have that be the bad outcome for the people in the room.

Mostly Solid
3
Radiology is the worked example, and the citation is doing more than it says
What holds up

The observation is accurate. There are more radiologists practicing in the United States than a decade ago, imaging volume has grown faster than the workforce, and the field that was supposed to be automated out of existence is instead short staffed. ACR Harvey L. Neiman Health Policy Institute figures put radiologist growth at 17.3 percent from 2014 to 2023.

Where it leaks

The supporting citation is the AJR Expert Panel narrative review by Rozenshtein and colleagues, and that paper is not an optimism paper. According to PubMed, its own abstract describes "a mismatch between the demand for radiologist services and the current size of the radiologist workforce," along with "dissatisfaction, turnover, and burnout among radiologists" and pressure on resident education. Khullar reads "larger workloads" as evidence of healthy Jevons expansion. The panel reads the same fact as strain. Both readings fit. Only one of them is a reason to feel good.

The deeper issue is the counterfactual. Radiologist headcount grew through a period in which clinical AI was mostly pilots and a small number of narrow FDA cleared tools. Reading the last decade as a verdict on autonomous agents is reading a trend line from before the intervention started.

Mostly Solid
4
Tasks versus skills, and the O-ring
What holds up

This is the strongest section and it is the one clinicians will recognize. Autor's task framework is the right tool, the surgeon example is well chosen, and the list of skills that resist decomposition (interpreting results, managing uncertainty, consulting colleagues, negotiating treatment plans, motivating behavior change, leading teams) is a fair description of what the job actually is on a Tuesday. The O-ring point is sharp: as systems get more expensive and more effective, small mistakes cost more, and a missed diagnosis matters more when a cure exists.

Where it leaks

O-ring theory is symmetric and he only runs it one direction. If the value of careful human oversight rises, that argues for more oversight per unit of output. It argues equally well for fewer, more expert humans supervising much more output, which is the same technology producing wage polarization instead of headcount growth. Kremer's original paper is about matching high skill workers with each other and paying them more, and it comes with a tail of workers who no longer clear the bar. That half is missing here.

The honest hedge is in the essay already, two paragraphs from the end, and it deserved more room: "some types of health care jobs could be replaced."

Solid
5
Medical ethics and privacy check
The Daniel standard

Clean. No patient appears in the Perspective and none appears in this review. No clinical encounter, no identifiable detail, nothing learned in a position of medical trust. Nothing here requires a permission note.

Solid

Competing perspectives, and who is making them

The debate is live and it is not one sided. Four positions are worth knowing, and they disagree with Khullar in different places.

A
The Jevons trap: same mechanism, worse ending

Ravi Shankar, Clinical Research and Innovation Office, Tan Tock Seng Hospital, National Healthcare Group, Singapore, writing in The American Journal of Medicine (2026). The title is "The Jevons trap: When artificial intelligence in healthcare creates endless work."

Shankar accepts the Jevons mechanism and rejects the conclusion. Induced demand does not arrive as new colleagues. It arrives as more inbox, more documentation to review, more alerts to adjudicate, more imaging to read. Efficiency gets absorbed at the point where it was created. This is the most useful counterpoint because it does not argue with Khullar's economics at all. It argues about who receives the expanded demand, and the answer is the clinician who is already there.

B
Headcount is the wrong variable. Watch labor's share.

Heathcote Ruthven and Christoph Agten, European Journal of Radiology Artificial Intelligence (2025), "Perspective: AI productivity will not benefit employed radiologists." Open access.

Their frame comes from James Bessen: automation reliably shifts value from labor to capital even when it does not reduce employment. They anchor on the Swedish MASAI screening trial, where AI supported reading cut radiologist workload by 44 percent, and they predict the surplus flows to employers, vendors, and private equity owners rather than to salaried radiologists. Their advice is blunt and worth repeating to any employed physician: get equity in the practice, specialize into something automation resistant, or plan a pivot. Korchi and D'Anna published a reply in the same journal in December 2025, so the disagreement is documented on both sides.

C
Khullar's own framework, run to a contraction

Curtis P. Langlotz, Stanford Institute for Human Centered AI, "The Effect of AI on the Radiologist Workforce: A Task-Based Analysis," medRxiv preprint, December 2025. Not yet peer reviewed.

This is the sharpest one, because it uses the same task decomposition Khullar leans on and comes out the other side. Langlotz projects a 33 percent reduction in radiologist hours worked over five years, with a range of 14 to 49 percent, driven mostly by report generation and study triage. He still concludes that job loss is unlikely for the foreseeable future, because imaging volume keeps growing against a static workforce. Note what that means. The optimistic reading of the optimistic case is that radiology stays fully employed by burning its entire productivity windfall on the backlog. That is Shankar's Jevons trap with a number attached to it. Langlotz is also the source of the line everyone quotes, from RSNA 2017, that radiologists who use AI will replace radiologists who do not.

D
Same headcount, cheaper people

Jeff Levin Scherz, MD, MBA (Managing Director, WTW; Harvard Chan School), summarizing economist David Cutler on his Employer Coverage newsletter.

Cutler's prediction is that AI enables substitution of less expensive clinicians for more expensive ones rather than a reduction in total clinicians. That is technically consistent with Khullar's thesis and unpleasant in a way Khullar does not address. The workforce can grow while physician roles are the part that gets squeezed. Levin Scherz adds two conditions worth carrying forward: models trained on historical practice reproduce historical inequity, and the Medicare Advantage prior authorization algorithm episode is the available case study in what happens when automated decisions run without meaningful human review.

A fifth, more polemical position exists and is worth reading with your guard up. Kanav Jain's "Algorithmic Austerity" argues that health care AI is primarily an instrument of financial extraction and labor control, and cites an AI driven staffing system that reportedly cut nurse staffing by 30 percent at a large hospital chain. I have not verified that figure, and the piece is an essay rather than research, but the structural claim (that deployment decisions are made by the people who capture the savings) is the same claim Ruthven and Agten make with citations.


Four brief counterpoints

One. You run out of cataracts. Cataract surgery and joint replacement both have a fixed anatomic denominator and a backlog of unmet need, which is the ideal setup for a Jevons expansion and an unusual one. Cognitive clinical work has neither ceiling nor backlog in the same sense, and Khullar's own ARPA-H example points at agents that autonomously deliver care rather than at agents that let a physician deliver more of it.

Two. The essay treats the clinical workforce as one thing. It is at least four (physicians, advanced practice clinicians, nurses, and the very large administrative layer) and the predictions diverge violently across them. Khullar's evidence is strongest for physicians in undersupplied specialties and weakest for the back office, which is where most health care employment actually sits and where the first agentic deployments are already landing. An essay about the clinical workforce that grows while medical coding, prior authorization processing, and scheduling contract is a true statement about a shrinking industry.

Three. Self fulfilling prophecy cuts both ways, and he says so. His closing point is that beliefs about the future shape investment, training, and payment policy. That is true. It is also the strongest argument for reading this Perspective as advocacy rather than forecast, which is a fine thing for it to be as long as it is labeled. The last sentence ("an essential step in bringing about the future we want") is the tell, and I mean that as a compliment to the essay's honesty.

Four. Nothing here is testable yet. Every empirical claim in the piece is about the pre agent era. The measurement that would settle it (clinician hours, headcount, and wage share per unit of clinical output, tracked through the first real agentic deployments) does not exist in any published form. Langlotz's preprint is the closest thing, and it is a model, not an observation.

So What

Khullar is probably right that the clinical workforce will not shrink, and probably wrong that this is the reassuring news it sounds like. The same economics that keep the headcount up predict flat wages, absorbed productivity, and a surplus that lands with whoever owns the practice.

Watch labor's share of the revenue, not the headcount. That is the number that moves first.

Confidence: moderate on the critique of the analogies, low on any forecast. The empirical evidence in this debate is entirely pre agent, on both sides.

Sources

Primary: Khullar D. Artificial Intelligence and the Future of the Clinical Workforce. N Engl J Med 2026;395(11):1041-1043. DOI 10.1056/NEJMp2607831

Author affiliation: How Will AI Impact the Future of the Clinical Workforce? Weill Cornell Medicine Newsroom, September 2026. news.weill.cornell.edu

Counterpoint A: Shankar R. The Jevons trap: When artificial intelligence in healthcare creates endless work. Am J Med 2026 (editorial). Retrieved via PubMed, PMID 42191014. DOI 10.1016/j.amjmed.2026.05.010

Counterpoint B: Ruthven H, Agten C. Perspective: AI productivity will not benefit employed radiologists. Eur J Radiol Artif Intell 2025;3:100033. DOI 10.1016/j.ejrai.2025.100033. Reply: Korchi AM, D'Anna G. Eur J Radiol Artif Intell 2025;4:100050. DOI 10.1016/j.ejrai.2025.100050

Counterpoint C: Langlotz CP. The Effect of AI on the Radiologist Workforce: A Task-Based Analysis. medRxiv preprint, December 2025 (not peer reviewed). medrxiv.org

Counterpoint D: Levin Scherz J. An economist weighs in on how artificial intelligence will change health care (on David Cutler). Employer Coverage. employercoverage.substack.com

Counterpoint E (polemic, claims unverified): Jain K. Algorithmic Austerity: How AI facilitates the Financialization of Medicine. thecrumplezone.substack.com

Radiology workforce: Rozenshtein A, Findeiss LK, Wood MJ, Shih G, Parikh JR. The U.S. Radiologist Workforce: AJR Expert Panel Narrative Review. AJR Am J Roentgenol 2025;224(5):e2432085. Abstract retrieved via PubMed, PMID 39692304. DOI 10.2214/AJR.24.32085

Workforce figures: The Radiologist Shortage: A Workforce Update from HPI. ACR Bulletin, February 2026. acr.org

Cited by Khullar: Baumol WJ. Macroeconomics of unbalanced growth. Am Econ Rev 1967;57:415-26. Pande V. Solving Baumol's cost disease in healthcare. Andreessen Horowitz, December 14, 2020. Autor DH. The "task approach" to labor markets: an overview. NBER Working Paper 18711, January 2013.

Note: Article metadata for the Shankar and Rozenshtein items was retrieved from PubMed.