Tuesday, March 10, 2026

A BCBS-affiliated data analysis finds AI-assisted coding at hospitals is inflating bills — $663M in additional inpatient spending attributed to AI-driven code complexity. The top 10% of hospitals drove most of the increase, with nearly 60% of inpatient admissions coded as complex by end of March 2025. Acute posthemorrhagic anemia coding alone added $22M to maternity admission costs in one year. Sepsis coding patterns show similar inflation — patients billed for sepsis without receiving treatment consistent with the diagnosis.

CMS is scrapping $200M in failed modernization contracts (14 missed deadlines, zero usable output) and handing Medicare systems overhaul to DOGE. The 1970s COBOL-based claims processing system is being replaced with a real-time cloud platform. A refurbished national provider directory launches March 31, replacing fragmented systems that cost $6B/year to maintain. CMS is embedding AI into care delivery and agency operations, including claims adjudication.

Waystar announced a Google Cloud partnership to deploy Gemini-powered healthcare agents across its platform, claiming its AltitudeAI has prevented $15B+ in denied claims in under a year and reduced 90% of time spent on denial appeals. CEO Matt Hawkins reported record bookings and accelerated Iodine acquisition integration. Waystar is positioning for "autonomous" (zero-touch) revenue cycle management.