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International Business Times UK
International Business Times UK
Terence Repelente

AI Linked to $942M Surge in Hospital Costs as Patients Are Coded 'Sicker' Without More Treatment

Artificial intelligence tools used in hospital billing added roughly $942 million in extra healthcare spending over a two-year period (Credit: Annie Spratt / Unsplash)

Artificial intelligence-assisted hospital billing may have contributed to an estimated $942 million (£712.29 million) increase in healthcare spending as more patients were classified as medically complex without a corresponding rise in treatment, according to a new analysis from the Blue Cross Blue Shield Association.

The research found that hospitals increasingly placed patients into higher-reimbursement categories in 2024 and 2025 than in 2023, often after documenting additional or 'secondary' diagnoses.

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