HOSPITAL MANAGEMENT SYSTEM FINANCE: BUDGET PREPARATION, CAPITAL PLANNING & INSURANCE CLAIMS WITH AI DECISION SUPPORT

Abstract

As hospital financial tasks become increasingly complex, the demand for reliable, accurate, and adaptable systems has grown essential for managing resources and supporting informed decision-making. During interviews with several finance officers, we noted a common concern: the rising capabilities of AI have sparked fears about job displacement, particularly among hospital leadership recognizing AI's potential. In response, the Hospital Finance Management System was designed not to replace, but to empower financial teams. It offers robust solutions for budget planning, capital allocation, and insurance claim processing, all tailored to the modern healthcare landscape. By integrating AI-powered decision support tools, the system enhances financial oversight and operational efficiency, while still valuing and preserving the critical role of human expertise in financial management. The system was developed on the foundation of proven financial management principles, enhanced by advanced machine learning techniques. Its AI capabilities analyze historical financial data to forecast future budget needs, optimize fund allocation, and assess risks associated with insurance claims. Throughout development, stakeholder feedback, iterative prototyping, and rigorous testing were used to ensure the platform remains user-friendly, accurate, and dependable in processing sensitive financial information. Following the system’s implementation, there was a marked improvement in budget forecasting accuracy, accompanied by a 35% reduction in the time typically needed for capital planning. Additionally, the efficiency of insurance claim processing increased by 45%. The AI-powered decision support feature delivered timely recommendations and predictive insights, enabling hospital administrators to make well-informed, data-driven financial decisions. This project showcases how merging conventional financial management tools with AI can meet the rising challenges faced by healthcare finance departments. Beyond automating everyday financial processes, the system also delivers intelligent support to aid in long-term planning and the efficient distribution of resources. Looking ahead, the platform has the potential to evolve by incorporating real-time medical data and built-in compliance checks, offering even greater stability and adaptability for hospital financial operations.