As health systems face mounting pressure to cut costs without compromising care, a growing number are turning to AI in the mid-revenue cycle. Technology investments have to do more than promise value, however — they must prove it.
A new 2025 KLAS Second Look Report suggests that Xsolis’ Dragonfly, the next generation of the company’s AI-driven platform that improves medical necessity decision-making, is hitting the mark, delivering measurable outcomes to hospitals and health systems. In anonymized client interviews with KLAS, Dragonfly users report improved denial rates, reduced length of stay (LOS), and rapidly achieved return on investment — all while enhancing payer-provider collaboration.
Denials: A $20 Billion Drain
Preventable denials aren’t just an administrative headache — they’re a debilitating financial liability. A Kaiser Family Foundation study found that roughly 1 in 5 adults encountered a health insurance denial in 2023, with adjudication and appeals costing health systems nearly $20 billion annually. Around half of denials are ultimately overturned, which equates to unnecessary and unsustainable administrative waste for both payer and provider organizations, leading to patient confusion and frustration about their billing experience.
In this context, 89% of Xsolis users surveyed by KLAS say they rely on its AI to minimize preventable denials. Nearly 9 in 10 saw outcomes within the first year of implementation, a critical benchmark for hospital executives wary of long tech ramp-ups. Moreover, 91% reported being satisfied or highly satisfied with overall performance — a strong signal in a tech market suffering from vendor fatigue and confusion amidst heightened AI promises.
Payer-Provider Alignment at Scale
Operational friction between payers and providers not only drags down revenue cycle performance, but it also compromises the patient experience. With two-thirds of Xsolis’ 500+ hospital clients now sharing an AI platform with their networked health plans, its AI-driven Dragonfly platform is helping to bridge that gap.
The platform goes beyond workflow automation. It draws from patient information in the EHR to predict the appropriate level of care for each patient, presented through shared views of Xsolis’ proprietary Care Level Score™, which is updated in real-time. This enables payers and providers to speak the same language, reducing administrative back-and-forth. The AI platform is fueled by its access to the full scope of clinical data on more than 300 million unique patient encounters, and it has delivered more than 2.7 billion predictions to date.
According to the KLAS report, 78% of respondents now use the platform for payer-provider communication, helping to streamline approvals, reduce patient status confusion, and ultimately accelerate discharge planning.
Cutting Length of Stay Without Cutting Corners
Length of stay (LOS) is a top operational lever for hospital financial leaders, directly impacting bed availability, throughput, and staffing efficiency. Clients interviewed by KLAS credit Xsolis with helping them optimize LOS and observation rates while accelerating alignment on care decisions. The Dragonfly platform also includes new functionality — like the Navigate product line, which targets LOS reductions, and Revenue Integrity Insights, advanced analytics that target financial recovery.
Also new to the Dragonfly platform is the addition of generative AI, which complements the platform’s predictive AI models. New generative AI features further assist clinical and revenue cycle teams by surfacing insights and streamlining documentation. For example, 68% faster medical necessity reviews were reported during a health system’s generative AI pilot experience.
Built for Integration and Scale
Ease of implementation and integration remain deal-breakers for many health systems evaluating tech platforms. KLAS respondents cited Xsolis’ ability to integrate seamlessly with EHRs, along with responsive customer service and executive involvement, as top reasons for selecting the platform.
Aside from evaluations of its platform, Xsolis has also been recognized by KLAS as No. 1 Best in KLAS for Physician Advisory Services for four years, as a KLAS Top 5 Emerging Solution for reducing the cost of care, and for its leadership with payer-provider collaboration with the KLAS Points of Light case study initiative.
The Bottom Line
Hospitals can’t afford long implementations or soft ROI. According to the latest KLAS data, Xsolis delivers rapid, tangible results in high-stakes areas like denials, length of stay, and payer-provider communication. With the overwhelming majority of users seeing measurable improvements within 12 months and nearly all reporting satisfaction with platform performance, Xsolis offers a compelling blueprint for using AI to address today’s mid-revenue cycle pain points.
Read the full KLAS report or download the infographic highlighting key take-aways.
