From Paper to Electronic: How to safely enhance P2E in Healthcare Claims with the use of AI

Integrating artificial intelligence (AI) in claims processing has become a critical focus in the rapidly evolving healthcare industry. As healthcare providers and payers strive to enhance efficiency and accuracy, the transition from paper to electronic (P2E) claims processing presents significant potential and notable challenges. The most prominent challenge is avoiding errors, such as in the recent outrage with claims being denied using AI, provoking several congressional lawsuits. Anesthesiology News

Addressing these challenges can lead to substantial improvements in operational performance.

Since assisting healthcare organizations for over two decades, we have seen many changes in the healthcare industry and technology. AI is one of the most exciting and potentially dangerous technologies available. To mitigate these challenges and harness AI’s benefits for healthcare organizations, we found the following best practices and advanced technologies proven effective. 

In this article we’ll uncover:

• The Challenges with AI in Claims Processing
• How to mitigate the risk associated with AI in healthcare P2E claims processing
• An optimal path to produce efficiencies 

Challenges with AI in Claims Processing

Errors in Data Recognition

AI can sometimes misinterpret handwritten or poorly scanned documents despite its advanced capabilities, leading to data entry errors. These errors can cause claim denials, delayed reimbursements, and increased administrative workload. For example, Experian Health found that initial AI-driven claims processing system implementations misread several handwritten claims, resulting in a significant error rate and manual corrections. This real-world issue highlighted the importance of continuous AI training and system refinements to reduce errors and improve accuracy​ (Experian)​​ (Experian)​.

Regular training and fine-tuning of AI systems can minimize these errors and ensure more reliable data recognition over time.

Data Integrity Issues

AI systems rely on vast amounts of data to function accurately. Consistent or complete data can ensure the integrity of the claims processing system is maintained, leading to accuracy and potential compliance issues. Ensuring data integrity is crucial for maintaining the accuracy of AI systems. This involves regular data audits and validation processes to ensure the data used by AI systems is complete and accurate. Implementing robust data management practices is essential for achieving high data quality.

Inefficiencies and Over-Reliance

Over-reliance on AI without adequate oversight can result in inefficiencies, defeating the very purpose of using this technology. AI systems may not always be able to handle complex or unusual claims, requiring human intervention to resolve issues. For instance, a claim involving multiple treatments or rare conditions might confuse an AI system, necessitating a manual review by a knowledgeable human operator. Balancing AI automation with human expertise ensures optimal performance. (Stanford HAI)​​ (Citrin Cooperman)​.

Integration Challenges

AI systems that work seamlessly with current infrastructure require careful planning and execution. This includes compatibility with existing software systems and integration with other digital tools used in claims processing. Successful integration involves collaboration between IT teams and continuous monitoring to address any issues promptly.

How to Avoid the Downfalls of AI in Efficient Claims Processing

To mitigate the challenges and harness the benefits of AI, we have found the following best practices and advanced technologies:

Use an Enhanced OCR Engine

A proprietary Optical Character Recognition (OCR) engine combined with Machine Learning (ML) to convert paper claims into electronic records can address common AI-related errors and enhance efficiency. An advanced OCR system that continuously improves accuracy can significantly reduce data entry errors.

High-Quality Data Recognition 

An effective OCR engine should be designed to interpret various types of handwritten and printed documents accurately. By leveraging ML algorithms, the system can continuously learn and improve its accuracy. For instance, differentiating between similar characters ensures data is captured accurately and efficiently. Regular updates and training of the OCR system help maintain high accuracy levels.

Enhanced Data Integrity

Ensuring data is consistently accurate and complete is crucial. Implementing rigorous quality control and quality assurance processes, including regular checks and validations, maintains the integrity of the claims data. Verifying every piece of data for accuracy before processing reduces the risk of errors and ensures compliance with industry standards.

Efficient Processing by Combining Technologies.

Combining the best OCR recognition engines with proprietary ML systems can produce high-quality electronic records quickly and efficiently. This streamlined process minimizes delays and maximizes throughput. Systems capable of handling large volumes of claims ensure timely reimbursements and reduce administrative costs.

Data Integration

Outside of the standard 837 5010 EDI standards, to ensure efficiencies in workflows, related technologies must be designed to integrate seamlessly with existing claims processing workflows. For example, integration with the EHR helps with:

• Tracking patient payments
• Submitting claims electronically
• Receiving reimbursement promptly
• Simplifying billing and payment
• Improving data security
• Automating billing processes
• Optimizing data entry and claim processing 

Adding integration to your claims processing minimizes disruptions and enhances operational efficiency.

Best Practices for AI-Powered Claims Processing

Implementing Advanced Technology

Staying at the forefront of technological advancements ensures that healthcare organizations leverage the best tools available for claims processing. Adopting cutting-edge technologies like our advanced OCR and ML systems can significantly improve the accuracy and efficiency of claims processing. 

Conducting Regular Audits

Regular audits of AI systems help identify and address any issues promptly. This ensures that the technology remains effective and compliant with industry standards. Audits should include:

• A review of the data being processed.
• The accuracy of the AI’s decisions.
• The overall efficiency of the system. 

Training and Empowering Staff

Empowering staff with the necessary skills and knowledge to oversee AI-powered systems is crucial. Regular training sessions on best practices and new technologies can enhance staff productivity and ensure smooth operations. Training should cover how to use AI tools, how to recognize when human intervention is needed, and how to ensure data integrity. 

Continuous Improvement

AI and ML systems thrive on continuous learning. These systems can be continuously improved by incorporating feedback and real-world data to deliver better performance and outcomes. Regularly updating the algorithms used by AI systems and integrating new data to improve accuracy and efficiency is essential. Continuous improvement helps organizations adapt to changing conditions and improve operational performance.

Considerations for a Successful Processing Partner

When selecting a company to convert paper claims to electronic, here are some key considerations and why our clients partner with us.

Proven Expertise

There is no replacement for experience. With years of experience in healthcare claims processing, Horizontech understands the unique challenges and requirements in the healthcare industry. Engaging with a company that understands technology and has extensive experience in the healthcare industry and your specific needs is crucial.  

Commitment to Innovation

Our OCR and ML systems represent the forefront of technological innovation in claims processing. We continuously invest in research and development to ensure our clients benefit from the latest advancements. This commitment to innovation ensures that our clients always use the most advanced and effective tools available. Partnering with a company that is committed to innovation helps organizations improve efficiency and adapt to new challenges.

Customer-Centric Approach

We prioritize our clients’ needs and work closely with them to deliver customized solutions. Our team is dedicated to providing exceptional service and support, ensuring a smooth and successful implementation. We work with each client to understand their unique needs and tailor our solutions to meet those needs. A customer-centric approach ensures clients receive solutions addressing their specific challenges and requirements.

Robust Security and Compliance

Data security is paramount in healthcare. Horizontech’s solutions are built with stringent security measures and undergo regular audits to ensure compliance with industry regulations. We understand the importance of protecting sensitive patient data and are committed to maintaining the highest data security standards. Robust security measures protect data integrity and ensure compliance with regulatory requirements.

In Summary

Investing in technology not only enhances operational performance but also fosters a culture of innovation and excellence in the healthcare industry.

The integration of artificial intelligence (AI) in healthcare claims processing, especially the transition from paper to electronic (P2E) claims, presents significant potential for efficiency and accuracy improvements. However, challenges such as errors in data recognition, data integrity issues, inefficiencies, and integration difficulties must be addressed.

By leveraging advanced OCR and ML technology, healthcare organizations can overcome these challenges and achieve efficient, accurate, and secure claims processing.

It’s essential to choose a provider with extensive experience in healthcare claims, who understands your needs, and who offers prompt customer service.

Horizontech is dedicated to leveraging advanced technology, including its proprietary OCR engine, machine learning capabilities, and personalized client service, to drive efficiencies and reduce processing costs effectively.

Our proprietary Optical Character Recognition (OCR) engine with Machine Learning (ML) provides a robust healthcare P2E claims processing solution. This combination ensures high-quality data recognition, enhances data integrity, facilitates efficient processing, and enables seamless integration. 

If you have specific needs or questions regarding claims processing, you can schedule a consultation with one of Horizontech’s advisors.

We hope you found this article helpful. If so, please share it with a colleague.

Horizontech streamlines complex workflows using expert business knowledge and proprietary technology, delivered with personalized service.