Research Shows Artificial Intelligence Increased Healthcare Costs by Nearly $1 Billion

Serdar HocamAuthor & Editor

A new study reveals that the use of artificial intelligence has driven up insurers' healthcare costs by nearly a billion dollars.

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According to a newly published study, artificial intelligence technologies have increased insurers' healthcare costs by nearly $1 billion. Experts emphasize that while diagnoses have increased, treatment rates have not seen a corresponding rise.

The Gap Between Diagnoses and Treatments

Recent studies have highlighted the effects of artificial intelligence use on billing and costs in the healthcare sector. Experts state that they would expect treatment rates to increase in parallel if patients' conditions genuinely worsened.

However, according to the data obtained, although more complex diagnoses were recorded, the same rate of increase was not observed in certain operations and medical interventions.

Increased Diagnoses After Surgery

According to the research findings, certain additional diagnoses were noted to have increased significantly in patients undergoing major bowel surgery. Additional diagnoses related to intestinal obstruction showed a 55 percent increase.

Furthermore, it was determined that diagnoses related to excessive acid accumulation in the body also increased by 33 percent in the same patient group, while treatments applied for these conditions did not experience a similar rise.

Anemia and Blood Transfusion Rates

Dr. Razia Hashmi, Vice President of Clinical Affairs at BCBSA, stated that while more complex health issues were being recorded in patients who underwent bowel surgery, treatment rates did not increase to the same extent.

As an example, it was stated that the number of patients diagnosed with anemia increased, but no rise was observed in blood transfusion rates, which are one of the common treatments for anemia.

Artificial Intelligence and Billing

Luke Chalker, Senior Vice President of Product and Data Science at BCBSA, drew attention to this clear disconnect between diagnoses and treatment. Chalker stated that this situation suggests artificial intelligence is identifying not sicker people, but rather more billable conditions.