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Margin protection: Why autonomous coding is a CFO’s best defense

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For hospital CFOs and finance leaders, the current healthcare landscape feels like a high-wire act. You are balancing shrinking operating margins against rising labor costs, all while navigating an increasingly complex web of payer rules that seem designed to delay reimbursement.

We have reached a tipping point where traditional cost-cutting measures are no longer sufficient. To achieve true financial sustainability, health systems must look toward structural innovation. The most promising frontier for immediate ROI? Autonomous coding.

This isn’t just about speed. It is about fundamentally changing the economics of your revenue cycle to create predictable cash flow and clean, expedited claims.

The high cost of the “squeaky wheel”

Denial management has historically been the squeaky wheel of the revenue cycle. It consumes massive amounts of time and resources to chase down missing information or correct coding errors after a bill has dropped.

Consider the financial drag of the status quo:

  • Labor inefficiency: Your most highly skilled coders are often bogged down by routine, high-volume charts.
  • Revenue leakage: Every denied claim represents delayed reimbursement and a higher cost-to-collect.
  • Compliance risk: Manual processes are inherently prone to human error, increasing audit vulnerability.

The goal isn’t just to manage denials better, it is to prevent them entirely. This is where autonomous coding transforms from a tactical tool into a strategic asset.

Enter expert-guided AI

Early iterations of automation in healthcare were often opaque “black boxes.” You put data in, got an answer out, and hoped it was right. That approach is too risky for today’s compliance environment.

The new standard is expert-guided autonomous coding. This technology does not just guess. It replicates the decision-making process of your best coders but at a scale and speed no human team could match.

By leveraging deep learning and neural network models, modern solutions read, process, and finalize qualified patient encounters without human intervention. Crucially, the technology is transparent. It offers an audit trail that explains why a code was selected, ensuring you are audit-ready at all times.

Evidence in action: A midwestern success story

The theory sounds good, but what does it look like in practice?

Consider the journey of a leading non-profit health system serving five Midwestern states. Like many organizations, they faced increasing patient volumes and a need to optimize operations without expanding their full-time employee base.

They partnered with our team to implement autonomous coding for outpatient services. The results offer a compelling business case for any CFO:

  • Massive automation: In ancillary services, they achieved automation rates in the 80 to 90 % range for qualified visits.
  • Uncompromised accuracy: The system delivered 95% accuracy across account categories, with some areas reaching as high as 98%.
  • Revenue integrity: Perhaps most importantly for the bottom line, the organization reported no increase in claim edits or denials.

This is the definition of “clean claims, stronger margins.” By automating the routine volume, the system accelerated the revenue cycle while maintaining strict compliance standards.

The financial impact: Why this matters to the CFO

Implementing autonomous coding drives three specific financial outcomes that directly impact your P&L statement.

1. Lowering the cost-to-collect

When 60% or more of your ancillary visits go directly to billing without human intervention, your cost-to-collect drops significantly. You are processing more revenue with the same headcount. This efficiency allows you to absorb volume growth without linear cost increases.

2. Accelerating cash flow

Speed matters. Autonomous solutions can code a chart in seconds. This reduction in Discharged Not Final Billed (DNFB) days means cash enters your organization faster.

3. Mitigating audit risk

Inconsistent coding is a primary trigger for audits and takebacks. Autonomous coding applies the same rigorous logic to every single chart, every single time. It eliminates the variability inherent in manual coding, providing a standardized, compliant output that stands up to payer scrutiny.

Redefining the human element

There is a misconception that automation is about replacing people. In reality, it is about respecting their expertise.

In the case of the health system mentioned above, automation didn’t lead to layoffs. Instead, it allowed them to upskill their workforce. Coders who were previously burnt out by repetitive data entry are now focusing on complex, high-value cases.

The path forward

Autonomous coding offers a clear path to financial sustainability. It delivers the predictability CFOs need: predictable costs, predictable compliance, and predictable cash flow.

Learn more about Solventum’s autonomous coding solutions here.

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