How AI Can Transform Healthcare Revenue Cycles and Reduce Denials

Update The Power of AI in Health Systems As healthcare providers grapple with rising operational costs and the demand for improved patient care, the adoption of artificial intelligence (AI) has gained momentum, particularly in managing the mid-revenue cycle. Health systems stand at a crucial crossroads, and technology investments are no longer merely options but necessities that must deliver measurable value. According to the recent 2025 KLAS Second Look Report, Xsolis’ AI platform, Dragonfly, is paving the way for significant advancements in this area. Users of Dragonfly have reported improved denial rates and a faster return on investment, proving that AI can indeed enhance collaboration between payers and providers. A Financial Drain on Health Systems: The Denial Crisis Preventable denials in healthcare result in more than just administrative chaos; they represent a staggering financial burden, costing health systems nearly $20 billion annually. A 2023 study from the Kaiser Family Foundation discovered that one in five adults faced health insurance denials. Even though approximately half of these denials get overturned, the process leaves patients confused and frustrated, highlighting a significant gap in healthcare administration that technology can potentially fill. Bridging the Gap: Payer-Provider Collaboration Impediments in communication between payers and providers complicate revenue cycle performance while detracting from patient experience. As reported by KLAS, 89% of users of Xsolis rely on its AI capabilities to mitigate preventable denials, with the majority witnessing improvements within the first year of implementation. The ability of Xsolis’ Dragonfly platform to utilize shared patient information in real-time allows healthcare systems paired with health plans to operate cohesively, significantly reducing the administrative back-and-forth. A striking 78% of respondents report using the platform for improved payer-provider communication, thereby aiding in streamlined approvals and quicker discharge planning. Reducing Length of Stay While Maintaining Quality Length of stay (LOS) in hospitals has long been a focus for financial leaders since it directly impacts bed availability and operational efficiency. Health systems are under constant pressure to optimize LOS without sacrificing care quality. Interviews conducted by KLAS revealed that Xsolis clients credit the Dragonfly platform with enabling them to reduce LOS and improve care alignment. Unlocking New Tools for Enhanced Patient Experience Healthcare automation is pivotal in refining processes across the board. A variety of innovative tools are emerging to improve patient engagement. From pre-tax benefit plans to remote therapeutic monitoring (RTM) programs, practices now have access to resources that streamline workflows and increase patient satisfaction. AI phone agents, HIPAA-compliant automation, and medical billing recovery systems are essential tools that foster practice efficiency, allowing staff to focus on patient care rather than administrative tasks. Additionally, voice AI agents help in patient interaction, ensuring that no missed calls curtail potential engagement opportunities. Actionable Insights for Independent Practices For independent physicians and healthcare practitioners, the key to thriving in the current landscape lies in leveraging advanced tools that drive operational efficiency. Exploring options such as voice AI solutions and automated compliance tools can lead to significant cost savings while enhancing the patient experience. Furthermore, engaged patients are more likely to return for services, thereby fostering growth and sustainability for independent care providers. Looking Ahead: The Future of AI in Healthcare With the increasingly complex healthcare landscape, aligning technology and care delivery will be crucial. As AI continues to evolve, so will the opportunities it presents. Technologies like Dragonfly may soon streamline more aspects of healthcare delivery, leading to even greater optimizations in medical billing, patient management, and provider efficiency. Staying informed and adaptable will be essential for healthcare providers looking to harness these capabilities. As AI technologies reshape healthcare delivery, practitioners must not only stay abreast of these innovations but also assess their integration into daily operations for maximum benefit. By focusing on enhancing communication and optimizing revenue cycles, healthcare providers can improve patient satisfaction and their bottom line. Now is the time for healthcare providers to embrace AI in their practices. By investing in technology that aids collaboration and efficiency, they can position themselves for a sustainable future in healthcare.