Why Mid-Revenue Cycle AI Success Depends on Leading Indicators
Tami McMasters Gomez outlines the KPI framework UC Davis Health is building to evaluate mid-revenue cycle AI: medical necessity denial rates, first-pass claim acceptance tied to mid-rev cycle edits, avoidable denial dollars prevented, reduction in targeted denials, and fewer retrospective authorizations. A key design principle is weighting the framework toward leading indicators rather than lagging ones. By the time a denial appears in the data, the window to prevent it has already closed. The approach is to establish a baseline without the technology and then measure the same indicators after implementation, creating a clear before-and-after that demonstrates whether the AI investment is yielding ROI.
Key Takeaway
Measuring mid-revenue cycle AI on denial rates alone captures the outcome too late. The right framework leads with upstream indicators: first-pass acceptance, avoidable denial prevention, and authorization patterns. Establishing a pre-technology baseline and tracking the same metrics after implementation is what determines whether the investment is paying off.
“By the time you see a denial, it’s already too late. So we’re emphasizing leading indicators: being more proactive rather than reactive.”
Tami McMasters Gomez, Executive Director of Mid-Revenue Cycle, UC Davis Health
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