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We recently assisted a large health system that approached us with a critical challenge regarding their OR revenue: resolve the recurring charge capture breakdowns in their operating rooms. The organization had identified more than $3.5 million in supply charges that were sitting unresolved, caught in limbo under temporary charge codes or misclassified using generic placeholders. In many cases, the items never made it into their ERP. Documentation was inconsistent or delayed. High-value implants were being used but not billed properly. And with every day that passed, the risk of missed revenue, compliance issues, and billing delays continued to grow.

 

A Widespread Issue Across the Healthcare Industry

This scenario is far from isolated. In fact, it reflects a systemic issue across the industry. Surgical areas are notoriously difficult environments for accurate item-level data capture. From bill-only supplies delivered at the last minute to high-cost implants not yet entered into a hospital’s item master, the traditional tools used for documentation—barcode scans and manual entry—are no longer enough. The consequences are significant. One in five hospitals is estimated to lose over $1 million per year in missed or underbilled implant charges. A US Department of Veterans Affairs Office of Inspector General report highlighted a $1.1 million loss in biologic implant inventory due to inadequate tracking systems.

 

The Impact on Revenue Cycle Operations

The downstream effects of these upstream failures are deeply felt in OR revenue cycle operations. Hospitals are frequently forced to absorb claim denials, delay reimbursement, or accept underpayments, particularly when carve-outs for implants and high-cost devices cannot be substantiated with timely, verifiable data. Compounding this problem is the widening gap in analytics readiness between providers and payers. While most hospitals still rely on fragmented clinical and billing data, payers are leveraging advanced analytics to scrutinize claims. According to a 2023 HFMA survey, 84% of healthcare finance leaders admitted their organizations lack real-time data visibility to support effective negotiations with managed care payers.

That’s where IDENTI came in.

How One Health System Closed Its OR Revenue Gaps with AI Automation
How One Health System Closed Its OR Revenue Gaps with AI Automation

IDENTI’s Solution: Boost OR Revenue Performance with AI-Powered Camera

To address this $3.5 million problem, we deployed Snap&Go, our AI-powered camera technology purpose-built to ensure accurate charge capture in high-intensity surgical environments. Unlike barcode-based systems that rely on user compliance and catalog match accuracy, Snap&Go automatically identifies every item placed on the sterile field in real time—regardless of catalog status, contract expiration, or charge code assignment. Every interaction is verified by image, recorded instantly, and transmitted to the hospital’s ERP or billing system. This enables the finance and materials management teams to track every item, flag exceptions, and manage temporary or inactive codes without placing additional burden on surgical staff.

 

Immediate Results: Real-Time Visibility and Accurate Billing

In this specific case, the hospital saw immediate results. Items previously misclassified were surfaced and properly reassigned. Devices that had been deactivated due to contract expiration were still captured, recorded, and submitted for revenue reconciliation. Most importantly, the organization regained operational control and financial visibility in an area that had long been a black box for revenue integrity.

 

The Shift Toward Proactive, Automated Charge Capture

These results are not just anecdotal. They represent a growing shift in the way hospitals are approaching charge capture—moving from reactive to proactive, from manual to automated, and from incomplete to accurate. As the hospital’s leadership team noted, numbers speak louder than intentions. When $3.5 million in unresolved charges is converted into $3.5 million in validated revenue, the ROI becomes self-evident.

 

We’ll be sharing more details about this story—and the broader transformation happening in surgical charge capture—in our upcoming live webinar:

Driving Revenue Cycle Excellence with AI Cameras in Surgical Areas

Tuesday, June 17, 2025 | 11:00 AM – 12:00 PM CT

Hosted by Becker’s Healthcare

This exclusive session will feature real-world strategies, implementation insights, and a close look at how hospitals can capture more, bill more, and defend every dollar—starting in the OR.

Following the webinar, all attendees will be invited to request a customized OR charge capture assessment. This free engagement is designed to help your hospital identify missed revenue opportunities and develop a tailored action plan to enhance financial performance in surgical areas.

FAQ: Solving the $3.5 Million Problem: How One Health System Closed its OR Revenue Gaps with AI Automation

Bill-only” supplies are items that are used in surgery but not physically stocked by the hospital. Instead, these supplies are billed directly to the patient or payer. The challenge with bill-only items is that they are often delivered at the last minute, making them difficult to capture accurately in the charge capture system. Without proper tracking, these supplies may go unbilled, leading to lost revenue. AI-driven solutions like Snap&Go help capture these bill-only items in real time, ensuring they are properly documented and billed, minimizing revenue leakage.

The primary challenges hospitals face with charge capture in the operating room include inconsistent documentation, delayed or inaccurate item entry into the ERP system, and misclassification of high-value implants or supplies. These issues often result in missed revenue opportunities, billing delays, and compliance risks. Traditional manual methods, like barcode scanning and manual entry, often fail to capture all items, especially those delivered at the last minute or those not yet entered into the hospital’s inventory master.

AI-powered camera technology, such as Snap&Go, automatically identifies every item placed on the sterile field in real time, regardless of catalog status or contract expiration. Unlike traditional barcode systems, which rely on user compliance, Snap&Go ensures every item is tracked and verified by image, providing instant documentation that is transmitted to the hospital’s ERP or billing system. This reduces errors, captures more items, and helps hospitals maintain accurate and timely billing, significantly improving OR revenue integrity.

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About the author

Or is the Head of Marketing and Strategic Partnerships. She has a wealth of experience in the health–tech sector. Her innovative marketing strategies have successfully driven IDENTI’s growth in multiple worldwide markets. Her strength is the ability to identify what truly resonates within the industry. She is passionate about building relationships and her expertise lies in creating meaningful partnerships with healthcare providers, distributors, and suppliers..
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