Battle of Hospital A.I. vs. Insurer A.I. Is Pushing Medical Costs Higher

Hospitals and health insurers are both deploying artificial intelligence systems in their payment negotiations. Hospitals use AI to justify higher charges for procedures and services, while insurers use AI to deny or reduce coverage claims. The competing automated systems are interacting without human oversight in some cases, according to hospital administrators and insurance executives interviewed by The Wall Street Journal. Both sides say their AI tools are necessary to manage costs, though neither has produced data showing the systems reduce overall spending.

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