Why Dental RCM Teams Are Turning to AI
Dental revenue cycle management (RCM) teams spend countless hours sending statements, verifying insurance, coding claims, following up on denials, and explaining balances to patients.
Each task demands accuracy, payer knowledge, and strong communication skills. It’s an ongoing uphill battle for billing teams, but fortunately there are now AI-powered tools that can expedite parts of this process.
Large Language Models (LLMs) like ChatGPT and other AI tools are beginning to reshape how RCM teams work. Instead of manually drafting appeal letters, deciphering payer codes, or rewriting patient statements, staff can use AI to generate first drafts in seconds. With the right guardrails, LLMs can save staff time, improve claim acceptance, and help practices collect more revenue. Let’s see what’s being prompted by RCM teams.
The Most Useful AI Prompts in Dental RCM
Patient Billing & Collections
Clear, empathetic billing communication improves patient trust and collections. LLMs are particularly useful here.
Common prompts:
- “Draft a plain-language email explaining a $350 patient balance with a payment plan.”
- “Write a script for staff to call about a past-due bill.”
- “Create a text reminder with a payment link.”
- “Write an FAQ explaining deductible vs. co-pay for patients confused by their bill.”
Why it matters: Many dental practices see growing patient balances. Effective communication boosts collection rates and patient satisfaction.
Eligibility & Benefits Verification
Verifying benefits is one of the most repetitive RCM tasks. LLMs can summarize dense plan documents or payer policy excerpts.
Common prompts:
- “Summarize coverage for posterior crowns under Delta Dental PPO (or other insurance network), including prior auth triggers.”
- “List exclusions typically applied to adult orthodontics in PPO plans.”
Why it matters: Getting benefits right the first time prevents denials and surprises for patients.
Coding & CDT Lookups
Staying on top of CDT lookups are a common use of AI tools. Because the CDT code set changes annually, having an accessible reference is important for billing teams. Misapplied or outdated codes remain a top cause of claim denials.
Common prompts:
- “What CDT 2025 codes apply to removal of a screw-retained implant crown?”
- “What documentation errors cause D4346 scaling claims to be denied?”
Why it matters: Faster, more accurate coding leads to higher first-pass acceptance rates.
Claim Denials & EOB Interpretation
Denials slow down revenue cycles. LLMs can help RCM staff quickly understand denial codes and draft appeal letters.
Common prompts:
- “Explain this denial: CO-16 – Claim/service lacks information.”
- “Write an appeal for a denied D7210 extraction citing clinical necessity.”
Why it matters: Appeals are time-consuming but have a high ROI when handled efficiently.
KPI Measurement & Forecasting
Practice leaders need insights into accounts receivable (A/R) and denial trends. Using the appropriate LLMs to scan data sets (usually requiring a paid account) is a new way to speed up the analytics process and allows for more consistent and frequent reporting.
Common prompts:
- “Analyze this A/R aging report (de-identified) and recommend collection priorities.”
- “Suggest 3 actions to improve first-pass claim acceptance from recent denial codes.”
Why it matters: AI can highlight trends that support faster, data-driven decisions.
Sample Prompt Templates for Dental RCM Teams
⚠️ Compliance Note: Never paste patient identifiers, dates of birth, or protected health information (PHI) into a public LLM.
Eligibility summary
Summarize coverage for crowns under this de-identified policy excerpt. List prior authorization triggers and common documentation requirements.
Coding helper
Suggest CDT codes for "removal of implant-supported crown." Note any CDT 2025 updates and payer edits that may apply.
Denial triage
EOB text (de-identified): "CO-16 – Claim/service lacks information." Provide 3 likely causes, 2 fixes, and a draft appeal rationale.
Appeal letter
Write a professional appeal letter to [payer] for a denied D7210 extraction. Cite CDT descriptors and request reprocessing. Provide a list of documents to attach.
Patient bill explainer
Your total charge was $1,200. Insurance paid $850. Remaining responsibility: $350. Draft a patient-friendly letter explaining this balance with three payment options.
Payment plan script
Write a 90-second call script to offer an interest-free 6-month plan for a $350 balance. Keep tone supportive and empathetic.
Past-due collection text
Create a polite reminder: "Hello [First Name], our records show a balance of $___ remains. You can pay online here: [link]. Please call us with any questions."
Benefits of Using LLMs in Dental RCM
- Quantifiable Time savings: Draft appeals, patient letters, and billing communication templates in minutes.
- Improved collection rates: Clearer communication improves patient trust. Patient trust streamlines the payment process with fewer inbound calls.
- Smarter and faster coding: Quick references for CDT code changes allows for more error-free coding in less time.
- More actionable insights: Setting up reporting prompts and leveraging LLM data set analysis gives RCM teams more consistent insights.
Risks and Compliance Considerations
- HIPAA compliance: All public LLMs are not HIPAA-compliant. Practices must either de-identify PHI data or use HIPAA-eligible vendors with signed Business Associate Agreements (BAAs). Make sure to de-personalize any practice data you use with AI tools.
- Accuracy Issues: It is not uncommon for LLMs to “hallucinate” when aggregating and summarizing information. Human review by certified billers/coders is mandatory before AI-generated solutions are used with patients.
- Policies and Governance: Dental organizations should create SOPs covering approved use cases, staff training, and prompt guidelines when using AI tools for RCM tasks.
RCM AI Implementation Checklist for Practices
- Start with non-PHI tasks like billing scripts and appeal templates.
- Develop a prompt playbook with approved examples.
- Require human review of all LLM outputs for your department.
- Work only with vendors that sign BAAs if PHI handling is needed.
- Measure success of your AI-powered program by tracking:
First-pass acceptance rate with payers
Appeal success rate (looking at a similar originating window of time for the first-pass acceptance rate analysis)
Payment velocity by looking at days in A/R (days past due)
Patient collection percentages (looking at windows of collection that you can attribute to your AI-template campaign
What the Future of Dental RCM + AI May Look Like
LLMs are not replacing dental billers or coders — but they are powerful assistants. They are positioned as an extension of the knowledge and experience of a billing team. From faster appeal letters to clearer patient statements, AI can cut administrative time, reduce denials, and boost collections. More patients receive an elevated financial experience without confusion or frustration.
For dental RCM teams, the key is balance: embrace the productivity gains while keeping compliance, accuracy, and patient trust at the center.