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This research introduces KREL, a framework that enhances Large Language Models for automatic medical coding by integrating structured ICD guidelines to mitigate hallucinations and ensure regulatory compliance. By coupling domain-specific knowledge with LLM reasoning, the approach effectively addresses challenges like lengthy clinical notes and complex coding rules, outperforming existing baselines in standardized benchmarks. The work represents a significant step toward reliable AI deployment in high-stakes healthcare environments where accuracy and adherence to medical standards are paramount.
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KREL: Automatic Medical Coding via Knowledge-Guided Reasoning over Clinical Evidence with LLMs

arXiv2 min read

arXiv:2608.20887v1 Announce Type: cross Abstract: Automatic Medical Coding (AMC), which assigns standardized International Classification of Diseases (ICD) codes to clinical notes, is essential for medical reimbursement, quality reporting, and clinical research. Existing pre-trained language model (PLM)-based methods typically formulate AMC as an extreme multi-label classification problem over a predefined code set, while recent large language model (LLM)-based approaches instead frame it as generation or multi-step reasoning. However, key challenges remain, including the extreme length of clinical notes that hinders effective interpretation, the vast ICD label space, and complex coding rules that are not explicitly captured by LLMs. In this work, we propose Knowledge-Guided Reasoning over Clinical Evidence with LLMs (KREL), a framework that leverages LLMs for clinical text understanding and reasoning while integrating external ICD coding guidelines as structured knowledge. This design enables tight coupling between domain knowledge and LLM reasoning, reducing hallucinations and improving compliance with coding standards. Experiments on benchmark datasets show that KREL consistently outperforms strong PLM-based and state-of-the-art LLM-based baselines.

Abstract:Automatic Medical Coding (AMC), which assigns standardized International Classification of Diseases (ICD) codes to clinical notes, is essential for medical reimbursement, quality reporting, and clinical research. Existing pre-trained language model (PLM)-based methods typically formulate AMC as an extreme multi-label classification problem over a predefined code set, while recent large language model (LLM)-based approaches instead frame it as generation or multi-step reasoning. However, key challenges remain, including the extreme length of clinical notes that hinders effective interpretation, the vast ICD label space, and complex coding rules that are not explicitly captured by LLMs. In this work, we propose Knowledge-Guided Reasoning over Clinical Evidence with LLMs (KREL), a framework that leverages LLMs for clinical text understanding and reasoning while integrating external ICD coding guidelines as structured knowledge. This design enables tight coupling between domain knowledge and LLM reasoning, reducing hallucinations and improving compliance with coding standards. Experiments on benchmark datasets show that KREL consistently outperforms strong PLM-based and state-of-the-art LLM-based baselines.

Computation and Language (cs.CL); Artificial Intelligence (cs.AI)

arXiv:2608.20887 [cs.CL]

(or arXiv:2608.20887v1 [cs.CL] for this version)

https://doi.org/10.48550/arXiv.2608.20887 Focus to learn more arXiv-issued DOI via DataCite (pending registration)

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Full text under the publisher's open licence · 257 words

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