The Future of Coding Audits: Trends, Triggers, and Tech Tools

In today’s rapidly evolving healthcare environment, coding audits have become a cornerstone of compliance and revenue integrity. The days of infrequent, retrospective reviews are behind us. Payers are now using advanced analytics, natural language processing (NLP), and artificial intelligence (AI) to identify documentation and coding anomalies with increasing speed and precision.

As the landscape continues to shift, health information (HI) Programming note:

Listen live when Angela Comfort cohosts Talk Ten Tuesday with Chuck Buck, 10 am Eastern.

professionals must move beyond reactive audit defense and adopt proactive strategies that anticipate payer focus and regulatory change.

Emerging Audit Triggers in 2025

Audit triggers are no longer limited to high-dollar claims or Diagnosis-Related Group (DRG) shifts. In 2025, both public and private payers are scrutinizing clinical validation issues, risk score anomalies in value-based contracts, and documentation that lacks specificity or clinical support. Diagnoses such as sepsis, encephalopathy, acute kidney injury, and malnutrition remain high-risk targets due to frequent documentation deficiencies.

In the outpatient space, payers are focusing on audio-only telehealth visits, evaluation and management (E&M) leveling, and prolonged service codes. The common thread is that auditors are increasingly equipped with AI-driven tools capable of detecting patterns across vast datasets, meaning that even subtle inconsistencies can trigger review.

Key Areas of Risk

Documentation quality and coding specificity are directly tied to audit risk. Discrepancies between what is documented in the electronic health record (EHR) and what is reported on claims can lead to costly takebacks, reputational damage, and heightened scrutiny from regulators.

The misuse of unspecified codes, failure to connect diagnoses with supporting clinical indicators, and inconsistent terminology are persistent red flags. The expansion of value-based care models adds further complexity, as incomplete or imprecise documentation can impact both financial performance and quality scoring.

Strategic Audit Preparedness

Leading organizations are adopting an audit resilience mindset, rather than simply reacting to payer findings. Strategic internal audits, particularly those targeting high-risk DRGs and outpatient encounters, enable early detection of vulnerabilities. These audits should assess not just coding accuracy, but the clinical validity of the documentation itself. Education is equally important; programs should be case-based, data-driven, and tailored to the clinical specialties they serve, ensuring that providers understand how their documentation influences audit outcomes.

Technology as an Enabler

Modern audit readiness is supported by technology. Predictive analytics can help identify potential denials before a claim is submitted. EHR-integrated tools can prompt for greater specificity at the point of care. Coding accuracy platforms with real-time feedback loops help reduce documentation gaps.

Additionally, centralized audit tracking systems enable the identification of trends and root causes, ensuring that lessons learned from one audit are applied across the organization.

The Expanding Role of HI

Health information (HI) professionals are uniquely positioned to lead organizational audit readiness efforts. Their work now extends beyond coding oversight to include enterprise-wide education, documentation process optimization, and the evaluation of audit technologies. HI leaders must bridge communication gaps between clinicians, compliance teams, and revenue cycle leadership, ensuring that policies are informed by both regulatory guidance and operational realities.

Conclusion

The future of coding audits is complex, technology-driven, and fast-moving. Organizations that succeed will be those that anticipate audit risks, invest in proactive education, and leverage tools to support defensible documentation.

As healthcare continues to prioritize value-based models and data-driven oversight, HI professionals have a pivotal role in protecting compliance, revenue integrity, and the quality of patient care.

Programming note: Listen live today when Angela Comfort cohosts Talk Ten Tuesday with Chuck Buck, 10 am Eastern.