Updated
Updated · TechCrunch · Sep 26
Hospitals' AI Claim Tools Drove $942 Million in Extra Spending Over 2 Years
Updated
Updated · TechCrunch · Sep 26

Hospitals' AI Claim Tools Drove $942 Million in Extra Spending Over 2 Years

3 articles · Updated · TechCrunch · Sep 26

Summary

  • $942 million in added healthcare spending over two years came from hospitals' use of AI tools in insurance claims, according to a Blue Cross Blue Shield Association analysis.
  • BCBSA said the tools sharply increased documentation of patients as having complex conditions, while finding no evidence that care delivered changed to match the higher-coded severity.
  • The findings add to concerns that AI is inflating healthcare costs as hospitals and insurers deploy competing systems in payment disputes.
  • Abridge founder Shiv Rao warned of a possible 'bots fighting bots' dynamic, though he said AI could also ease friction and lower costs.

Insights

Are AI tools secretly inflating your hospital bills by thousands of dollars without actually improving your medical treatment?
Could the AI designed to streamline healthcare trigger a massive wave of federal fraud investigations over unsupported medical claims?