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John Snow Labs Unveils New AI-Powered HCC Coding Engine

by Fred Pennic 04/22/2025 Leave a Comment

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What You Should Know: 

– John Snow Labs, a company specializing in artificial intelligence for healthcare, today announced the launch of its new, end-to-end Hierarchical Condition Category (HCC) coding engine.

– Introduced during the company’s annual Healthcare NLP Summit, this solution is engineered to assist healthcare providers and payers in significantly improving risk adjustment accuracy and strengthening revenue integrity.

Addressing Critical Gaps in Risk Adjustment

Accurate HCC coding is fundamental for effective patient risk adjustment. It directly impacts reimbursement under value-based care models and is crucial for the financial sustainability of healthcare organizations. However, a significant gap exists between clinical documentation and coded data. Studies indicate that as many as half of all patients may have conditions, complications, or severity indicators documented within unstructured clinical notes that are not accurately reflected in claims data or electronic health records (EHRs). This discrepancy leads to inaccurate risk scores and potential revenue loss.

An End-to-End AI Solution for Unstructured Data

John Snow Labs’ new engine directly confronts this challenge by automating the identification of missed clinical codes hidden within unstructured text like physician notes. The solution leverages the company’s state-of-the-art, healthcare-specific large language models. Key features include built-in human-in-the-loop validation capabilities to ensure accuracy and a full audit trail for transparency and compliance. Furthermore, the engine offers the ability to fine-tune the AI models based on an organization’s specific patient population, leading to higher accuracy compared to standard off-the-shelf models or services.

Enabling In-House Control, Efficiency, and Accuracy

This AI-powered HCC coding engine empowers healthcare organizations to manage their patient risk adjustment programs entirely in-house. This shift provides clinical and coding teams with greater control over the process, enhanced scalability to meet varying demands, and improved cost efficiency. By integrating this engine into existing coding workflows, organizations can significantly reduce their dependence on external outsourced coding services, leading to substantial cost savings and better overall quality control.

“Our new HCC coding engine was developed to address the challenges of today’s healthcare industry—creating a more accurate and consistent revenue cycle at a lower cost,” said David Talby, CEO, John Snow Labs. “By leveraging the latest healthcare-specific AI models and human-in-the-loop workflows to improve them, both payers and providers can run HCC coding in-house at lower cost, with higher accuracy, and tighter control compared to outsourced or black-box services.”

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Tagged With: Artificial Intelligence, Revenue Cycle Management

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