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Medical Fraud and Abuse Detection System Based on Machine Learning.
Conghai Zhang1, Xinyao Xiao2, Chao Wu1
1School of Management, Zhejiang University, Hangzhou 310058, China.
Summary
This study introduces a novel neural network to detect medical fraud and abuse by scoring disease-drug relationships. The model significantly outperforms previous methods, aiding healthcare analysts in identifying anomalies.
Area of Science:
- Healthcare analytics
- Machine learning in medicine
- Medical fraud detection
Background:
- Approximately 10% of healthcare spending is lost to fraud and abuse.
- The complexity of drug-disease interactions complicates healthcare oversight.
Purpose of the Study:
- To develop a quantitative method for assessing disease-drug relationships.
- To implement an anomaly detection system for identifying medical fraud and abuse.
Main Methods:
- Proposed a neural network incorporating fully connected layers and sparse convolution.
- Utilized a focal-loss function to address data imbalance.
- Introduced a relative probability score for performance evaluation.
Main Results:
- The developed neural network demonstrated superior performance compared to existing models.
- The model effectively quantifies disease-drug relationships for anomaly detection.
Conclusions:
- The proposed model offers a significant advancement in detecting medical fraud and abuse.
- This approach can substantially reduce the workload for healthcare analysts.

