Contrary to the promise of cost reduction, artificial intelligence is enabling U.S. hospitals to increase patient billing by identifying more complex diagnostic codes. These AI tools meticulously analyze medical records to capture every possible detail regarding complications, often resulting in diagnoses being classified under high-severity categories that command higher reimbursement rates.
A striking example reported by Fortune reveals that some hospitals saw the usage of the billing code for acute post-hemorrhagic anemia during childbirth jump from 4% to 12.3% between 2022 and 2025. This practice, often referred to as upcoding, demonstrates how technology is being leveraged to maximize revenue rather than decrease operational expenses for patients.
