The data: Administrative costs now account for over 40% of hospitals’ total expenses for delivering patient care, driven in part by an increasing number of medical claim denials spurred by insurers’ growing use of AI tools, according to a new American Hospital Association (AHA) report.

Digging into the data: Between 2022 and 2023, medical claim denials soared.

• Denials increased by an average of 20.2% for commercial plans, per the AHA.