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A Predictive AI Model for Proactive Denial Management in Healthcare Revenue Cycle: A Retrospective Cohort Study

10/21/2025 • BMJ Health & Care Informatics • License: CC BY
Jones, P.

Abstract

This study developed and validated a machine learning model to predict insurance claim denials. Using a dataset of over 5 million claims, the model identified claims with a high likelihood of being denied with 92% accuracy (AUC 0.94). This enabled the revenue cycle team to flag and correct potential errors before submission, leading to a 28% reduction in the overall denial rate and a significant decrease in costly rework and appeals.

Clinical implications

An AI tool was successfully trained to predict which medical insurance claims would be denied before they were submitted. This allowed staff to fix errors proactively, resulting in a 28% drop in claim denials and saving the hospital significant time and money on appeals.

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