Revenue cycle management and AI: what providers should know

by Experian Health 6 min read July 8, 2024

Revenue-cycle-management-and-AI-what-providers-should-know

Once hesitant, the healthcare industry is slowly embracing artificial intelligence (AI)’s potential. Healthcare stakeholders, particularly those in revenue cycle management, are now interested in exploring AI-driven technology solutions to tackle daunting administrative tasks. According to data highlighted by the Journal of AHIMA, two-thirds of health systems are adopting AI to support revenue cycle processes.

AI offers solutions that address the complexities of medical billing, insurance claims, and patient payments and enhance hospitals’ financial health. The potential savings from AI adoption in healthcare spending could range from $200 to $360 billion annually, making it a compelling option for revenue cycle leaders looking to save more in far less time and with fewer resources.

AI-powered tools show strong promise to reshape how revenue cycle leaders manage the most pressing issues in revenue cycle management, offering an efficient and seamless solution to complex revenue cycle tasks, including automated data entry and real-time insurance verification. Read on to discover more about the role of AI in revenue cycle management and how best to take advantage of robust AI solutions to streamline claims processing.

How is AI used in revenue cycle management?

The state of the average healthcare revenue cycle today reveals a pressing need for improvement. According to Experian Health’s State of Claims 2022 report, reimbursement cycles are getting longer and claim errors and denials are rising.

Here are everyday revenue cycle management challenges that AI-powered solutions can efficiently solve.

AI can help manage complex billing procedures

Accurate medical billing is the first step towards guaranteeing claims approval, yet data indicates that revenue cycle managers are falling short in this critical area. Errors in medical billing cost the U.S. healthcare system approximately $935 million weekly, highlighting the urgent need for improvement in the medical billing processes.

Navigating the intricate landscape of insurance plans, billing codes, and patient payments can be overwhelming. Each insurance plan has unique nuances and requirements, adding to the complexity. Moreover, the success of a billing process relies on accuracy, which may be near impossible with manual handling.

Adopting AI into every aspect of the billing cycle can streamline and improve the billing process while ensuring accuracy at every stage. AI-powered billing solutions like Patient Access Curator effectively manage critical aspects of the process, including verifying a patient’s coverage and eligibility and fixing billing errors.

Accurate billing significantly reduces the potential for rejected claims, creating opportunities for more efficient healthcare operations and saving money.

AI in RCM can help prevent claim denials

According to The State of Claims 2022 report, 200 health professionals surveyed stated that 5% to 15% of claims are denied. These denials result in hospitals losing billions of dollars, approximately $260 billion per year, forcing them to write off massive amounts of debt, as noted in the Journal of Managed Care & Specialty Pharmacy.

Insurance claims denials often result from inadequate data and analytics to identify submission issues, manual claims processing, and insufficient staff training. These denials affect the hospital’s revenue and create additional administrative work to rectify the errors. The downstream effect is that patients may receive bills in error and end up paying the out-of-pocket bills if resolution does not occur.

AI can make a huge difference, turning the bleak trend of increasing claim denials into a more positive experience for hospitals and patients. Encouragingly, The State of Claims 2022 report reveals that over half of healthcare providers use AI-powered healthcare claims management software to prevent claim denials.

Among these AI-powered software solutions, Experian Health’s AI Advantage™, when used in conjunction withClaimSource®, an automated claims management system, stands out as a valuable solution for bolstering denial prevention efforts, improving claims management, and increasing revenue savings.

Reduce patient payment delays

With the rise in high deductible health plans, patients are putting off or not making payments, affecting the hospital’s cash flow. According to medical billing analysts, people with health insurance, who previously accounted for only a fraction of hospital debtors, now constitute the majority of debtors in American hospitals. Hence, patient payment delays are now serious roadblocks to seamless revenue cycle management.

On the provider end, there’s also the challenge of swiftly verifying a patient’s coverage and estimating their medical bill without any margin for error. Billing mistakes, surprise expenses, and complex payment processes can make it challenging for patients to manage their finances and make payments as early as possible. On the other hand, early and accurate estimation of patients’ financial responsibility can help patients understand and appropriately plan for medical bills in advance.

However, achieving the latter experience for patients involves sifting through constantly growing data, compounding the strain on limited hospital resources. That’s where AI-powered revenue cycle management solutions can help. With solutions like Patient Access Curator, healthcare providers can quickly and accurately gather and verify necessary information about a patient’s insurance, enabling them to promptly provide patients with a clear picture of what’s left for them to pay.

How can AI help with claims management?

AI-powered software offers tailored solutions to simplify and optimize claims management processes and, in turn, improve revenue cycle management. Here are two critical ways AI can help with claims management.

Real-time insurance eligibility verification

Accurate eligibility verification is a fundamental part of the claims process. It is crucial for an accurate and faster billing process, increasing claims approval rates, and improving revenue cycle management. Conversely, incorrect verification leads to denied claims, contributing to care delays, wasteful healthcare spending, and a poor patient payment experience.

By using Experian Health’s Al-powered Patient Access Curator solution, healthcare providers can instantly verify and update patient insurance information, ensuring accurate billing and reducing the potential for claims denial. This real-time verification eliminates any need for guesswork and ensures that billing is done based on the most current insurance information.

Patient Access Curator is a valuable tool for hospitals looking to save time, money, and staff resources that would have been spent on a lengthy and denial-prone claims process. With just one click and in 30 seconds, it prevents claims denial problems on the front-end. Since 2020, it has been a game changer for the financial health of clients using the platform, helping them save over $1 billion in denied claims.

Predictive claims analysis

AI can predict potential claim denials or payment delays, empowering hospitals to take proactive measures. By analyzing historical data and patterns, AI can flag potential issues before they become costly problems. AI Advantage™, another AI-powered solution, aims to help healthcare providers prevent and manage claim denials.

This solution has two components:
AI Advantage – Predictive Denials: reduce claims denials by spotting errors and identifying claims that don’t meet ever-changing payer rules, allowing corrections to be made.
AI Advantage – Denial Triage: works after a claim has been denied to identify and group denials most likely to be approved after resubmission, allowing organizations to prioritize resubmissions most likely to benefit their finances.

As revenue cycle leaders strive to navigate the ever-evolving landscape of healthcare, it is crucial to embrace AI to stay ahead of the game. With Experian Health’s expertise and resources, healthcare providers can fully take advantage of robust AI solutions to streamline their revenue cycle processes and achieve financial success.

Find out more about how Experian Health helps healthcare providers leverage AI to solve the most pressing issues in revenue cycle management.

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Key takeaways: Revenue cycle teams can use automation to reduce repetitive work and apply AI where data-driven prediction, matching or prioritization can improve a workflow. Experian Health’s 2025 State of Claims survey found that 41% of providers now face denial rates of 10% or higher, while 68% say submitting clean claims is more challenging than a year ago. Patient Access Curator™ (PAC) uses AI to support front-end data validation and insurance discovery, while AI Advantage™ helps teams predict denial risk and prioritize denial follow-up. Artificial intelligence (AI) and automation can support administrative work in healthcare. In the revenue cycle, teams depend on accurate information, timely decisions and efficient follow-up to keep claims moving. In revenue cycle management, AI and automation can help organizations reduce manual checks, find data gaps, predict denial risk and prioritize work queues. These tools are most useful when they support staff judgment, payer expertise and compliance oversight. They can handle repetitive, data-heavy tasks so staff can focus on exceptions and decisions that need human review. In 2023, McKinsey & Company reported that research suggests effectively deploying automation and analytics could eliminate $200 billion to $360 billion of spending in U.S. healthcare. For revenue cycle leaders, the practical question is where to apply those capabilities first. The case for applying AI and automation in healthcare Revenue cycle teams juggle many daily tasks. Staff collect and verify patient information, confirm eligibility, identify the right payer, submit clean claims, monitor status, work denials and manage collections. Small data gaps at the beginning of the process can create downstream rework and delays. Rework also consumes staff time, adding to these operational pressures. As costs rise and revenue cycles tighten, there is increasing pressure to do more with less. Experian Health’s 2025 State of Claims survey found that 54% of providers say claim errors are increasing and 90% of claim denials are reworked with at least some human review before resubmission. Providers are also managing broader financial and administrative pressures. The American Hospital Association has reported that prior authorization requirements, claim audits, denials and other payer policies add administrative burden and cost for hospitals and health systems. These requirements also consume staff time to appeal denials and manage payer processes. AI and automation are different but complementary. Automation follows defined rules to complete repeatable work. AI models can identify patterns in data, predict risk and help teams decide where to focus attention. When used together, they can support more consistent revenue cycle workflows. How AI and automation can support revenue cycle workflows Revenue cycle management automation and AI are most useful when tied to a specific workflow and a measurable operational problem. The goal is to help teams act earlier, reduce avoidable rework and focus staff time where judgment is needed most. For example, automation can complete rule-based eligibility checks. AI can help identify claims with a higher likelihood of denial. In insurance discovery workflows, AI can also help identify coverage that wasn’t captured at registration. When these tools fit into existing workflows, they can support more consistent decisions and reduce manual work. Three practical applications include: 1. Improving front-end data quality with Patient Access Curator Patient and coverage information collected early in the revenue cycle can affect downstream claim outcomes. Incomplete or outdated demographic details, eligibility responses, coordination of benefits or Medicare Beneficiary Identifier information can create problems that lead to claim delays or denials later in the cycle. Experian Health’s Patient Access Curator helps prevent claim denials by validating demographics, eligibility, insurance discovery, coordination of benefits and Medicare Beneficiary Identifier data in seconds. PAC’s AI and machine learning capabilities help improve match accuracy, coverage sequencing and data confidence by writing the validated data back into the host system and sequencing payers before the claim is created. This automates work that would otherwise require manual coverage checks. 2. Using insurance discovery to find coverage not captured at registration When active coverage isn’t identified during registration, claims may be delayed or submitted with incomplete insurance information. Insurance discovery looks for coverage that may not have been captured during registration. Patient Access Curator includes insurance discovery as part of its front-end validation workflow. It can help identify and correct missing or incorrect insurance information so claims can be submitted with more complete coverage data. 3. Using AI to prevent and prioritize denials Even with strong front-end processes, some claims still require additional attention. AI can help claims teams decide which claims to review before submission and which denials to work first after payer response. Experian Health’s AI Advantage supports two denial management use cases:1. AI Advantage – Predictive Denials uses a client’s historical claims data and Experian’s knowledge of payer rules to identify claims with a high likelihood of denial before submission so teams can take corrective action.2. AI Advantage – Denial Triage uses AI to segment denials and identify those with the highest potential for reimbursement. This approach can help teams prioritize with more confidence. Rather than treating every claim or denial the same way, teams can use predictive models to focus on the work that needs the most attention. Potential benefits of AI and automation in the revenue cycle A high-performing revenue cycle depends on timely, accurate and consistent work. AI and automation can help providers modernize that work without losing the expertise of the people who manage complex payer and patient situations every day. When applied to the right workflows, these tools can help organizations: Reduce manual data searches that take staff away from higher-value work Improve front-end data quality before claims are created Identify missing or incorrect coverage information earlier Spot claims that may be at higher risk of denial Prioritize denied claims by potential reimbursement Reduce rework caused by inaccurate or incomplete information Give staff more consistent information for follow-up decisions A focused AI strategy starts with the workflow problem, uses data that is relevant to that problem and keeps staff in control of judgment-based decisions. A more proactive approach to revenue cycle management Revenue cycle teams can move from reactive work toward a more proactive approach: catch errors earlier, validate coverage before claims are created and prioritize the claims and denials that need the most attention. Experian Health offers revenue cycle solutions that use AI and automation in targeted ways to support front-end data quality, reduce rework and manage denials. Patient Access Curator supports registration and coverage validation, while AI Advantage supports denial prediction and triage. Learn more about Experian Health’s Patient Access Curator and AI Advantage.

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