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Home AI in Healthcare

Addressing Australia’s Coding Skill Gap

Adam Smith – Tech Writer & Blogger by Adam Smith – Tech Writer & Blogger
April 14, 2025
in AI in Healthcare
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Addressing Australia’s Coding Skill Gap
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Introduction to AI-Assisted Coding

Northern Health is transitioning to AI-assisted coding to replace its legacy system, addressing inefficiencies and proactively tackling the challenges of a decreasing workforce. Its Health Information Services has adopted an end-to-end, integrated coding solution provided by Code Focus, which delivers real-time coding feedback and streamlines workflow, compliance, and reporting with AI assistance.

Benefits of the New System

This implementation will help ensure accurate reporting of Diagnosis Related Group assignments and National Weighted Activity Units and reduce errors and manual auditing, freeing up time for health information managers. The new system will provide real-time coding feedback, streamline workflow, compliance, and reporting, and help reduce the need for manual auditing.

The Larger Context

Turning to AI-assisted coding is part of Northern Health’s digital initiatives to address the challenges of rising care demand and a dwindling workforce. Global health systems will face a shortage of more than 10 million workers, including clinical coders, by the end of the decade, according to the World Health Organization’s projection.

The Impact of Workforce Shortage

The issue, which is now causing serious backlogs, delayed payments, and billing errors, is exacerbated by variations in medical coding systems and the rise in annual separations. In Australia, for example, separations increased by around 7%, from 11.3 million in 2018 to 12.1 million in 2022, based on data from the Australian Institute of Health and Welfare.

Addressing the Challenges

"As annual separations rise, the AI component will reduce the need for scaling up the coding workforce, providing both cost savings and a proactive approach to clinical coding workforce shortages our industry is facing," said Odette Taylor, director of Northern Health’s Health Information Services. In its 2022 survey, Code Focus noted how health information managers wanted their organisations to invest more in analytics and auditing software to help them deliver quality coding.

Conclusion

The adoption of AI-assisted coding by Northern Health is a significant step towards addressing the challenges of a decreasing workforce and rising care demand. The new system will help ensure accurate reporting, reduce errors, and free up time for health information managers. As the healthcare industry continues to evolve, the use of AI-assisted coding is likely to become more widespread, helping to improve the efficiency and effectiveness of healthcare services.

FAQs

  • Q: What is AI-assisted coding?
    A: AI-assisted coding is a system that uses artificial intelligence to help with medical coding, providing real-time feedback and streamlining workflow, compliance, and reporting.
  • Q: Why is Northern Health adopting AI-assisted coding?
    A: Northern Health is adopting AI-assisted coding to address the challenges of a decreasing workforce and rising care demand, and to improve the efficiency and effectiveness of its healthcare services.
  • Q: How will AI-assisted coding help with workforce shortages?
    A: The AI component will reduce the need for scaling up the coding workforce, providing both cost savings and a proactive approach to clinical coding workforce shortages.
  • Q: What are the benefits of AI-assisted coding?
    A: The benefits of AI-assisted coding include accurate reporting, reduced errors, and freed-up time for health information managers.
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Adam Smith – Tech Writer & Blogger

Adam Smith – Tech Writer & Blogger

Adam Smith is a passionate technology writer with a keen interest in emerging trends, gadgets, and software innovations. With over five years of experience in tech journalism, he has contributed insightful articles to leading tech blogs and online publications. His expertise covers a wide range of topics, including artificial intelligence, cybersecurity, mobile technology, and the latest advancements in consumer electronics. Adam excels in breaking down complex technical concepts into engaging and easy-to-understand content for a diverse audience. Beyond writing, he enjoys testing new gadgets, reviewing software, and staying up to date with the ever-evolving tech industry. His goal is to inform and inspire readers with in-depth analysis and practical insights into the digital world.

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