Transforming Medicaid & Public Health with AI

Discovering the Art of the Possible with Maryland Department of Health.

RFI BPM052131

Originally issued by Maryland Department of Health, Office of Enterprise Technology

The Maryland Department of Health (MDH) seeks to discover the “Art of the Possible” in Medicaid programs and broader operations through innovative AI Agents, specialized Large Language Model (LLM), Robotic Process Automation (RPA), Process Mining(PM), Communications Mining(CM), and Artificial Intelligence (AI) solutions.

In response to RFI BPM052131, we showcase specific use cases demonstrating the art of the possible related to Maryland’s Medicaid system, replacing legacy COBOL-based infrastructure (e.g., MMIS), and enhancing public health and IT operations. We show that AI and Machine Learning can be harnessed to reduce costs, improve efficiency, and ensure compliance with HIPAA, Federal Laws, and Maryland state laws.

Each use case below demonstrates functionality using synthetic data.

Use Case 13
RPA for Data Entry and Record Reconciliation

Solution Description and Purpose

Pinnacle’s Healthcare Data Reconciliation RPA is an intelligent automation platform specifically designed for Maryland’s complex healthcare data environment. Our solution automates the extraction, validation, and reconciliation of patient records, grants data, and administrative information across multiple MDH systems, significantly reducing manual processing time while ensuring data accuracy and HIPAA compliance.

The platform leverages advanced OCR capabilities, machine learning validation algorithms, and real-time database integration to process unstructured documents (PDFs, scanned forms, emails) and seamlessly update target databases with validated information.

Technical Details

The solution implements a dual-path extraction pipeline optimized for reliability in on-premises Medicaid environments:  a primary LLM extraction path that enforces JSON-only responses with strict schema validation; and a deterministic fallback path using PDF text parsing, medical regex patterns, and NLP to guarantee field coverage when LLM output is incomplete or non-JSON, ensuring continuous operation even during modeldrift or network constraints.

All extractions are normalized into a canonical schema: patientName (string), dateOfBirth (ISO‑8601), medicaidId (MD+[9–12 digits] pattern), diagnosis (string), procedures (array of strings), claimAmount (standardized currency), and provider (string), enabling idempotent database updates and high-fidelity reconciliation across target systems.

Per-field confidence scores combine model confidence with rule-based validators (format checks for dates and currency, ICD‑10/CPT detection, Medicaid ID patterns, and cross-field plausibility between diagnosis and procedure), with configurable thresholds that route low-confidence records to human review for auditability and quality control.

Architecture: On-premises deployment with secure cloud integration options; Logical Architecture (on-premises first): Ingestion (PDF/text) → Extraction Service (medical LLM with JSON-only prompt discipline and schema validation) → Validation Layer (format, code sets, cross-field rules) → Compliance Engine (policy packs and evidence generation) → Connectors (secure adapters for EHR/databases and ticketing/reporting) → Audit Log Store (immutable) → Operations UI for monitoring and human-in-the-loop reviews.

Integration: Native connectivity to current systems, databases, and document management systems

Compliance: Full HIPAA compliance with encryption, audit logging, and role-based access controls

Technology Stack: .NET Core, Python ML libraries, OCR engines, SQL Server/PostgreSQL compatibility

Security: End-to-end encryption, secure API interfaces, comprehensive audit trails

Demonstration Video

Our demonstration showcases:

  1. PDF Data Extraction: RPA bot automatically extracts patient demographics, financial information, and clinical data from mock healthcare PDFs
  2. Intelligent Validation: Machine learning algorithms validate extracted data against business rules and data quality standards
  3. Database Integration: Seamless update of multiple healthcare databases with validated information
  4. Error Handling: Automatic flagging of discrepancies and routing to human reviewers
  5. Compliance Reporting: Generation of audit reports and compliance documentation

Video Access: Click here to download

Service Level Agreements

  • Accuracy Rate: 99.5% data extraction accuracy guaranteed
  • Processing Speed: 500+ documents per hour per bot instance
  • Uptime: 99.9% system availability
  • Response Time: < 2 seconds for data validation processes
  • Support: 24/7 technical support with 4-hour response SLA

Licensing and Pricing Structure

Licensing Model: Per-bot subscription with volume discounts
Pricing Drivers:

  • Number of concurrent bot instances
  • Volume of documents processed monthly
  • Integration complexity (number of source/target systems)
  • Customization requirements
  • Support level (standard vs. premium)

Structure: [Base platform fee] + [per-bot licensing] + [optional professional services for customization and integration]

Use Case 15
AI Agent for Regulatory Compliance Monitoring

Solution Description and Purpose

Pinnacle’s Intelligent Compliance Monitoring Agent is a sophisticated AI-powered platform that continuously monitors MDH operations for regulatory compliance across HIPAA, FISMA, CMS guidelines, and Maryland state regulations. The system proactively identifies compliance gaps, generates actionable insights, and provides real-time alerts to prevent violations before they occur.

Our AI agent employs natural language processing, pattern recognition, and predictive analytics to analyze operational processes, audit logs, documentation, and staff activities, ensuring comprehensive compliance coverage across all MDH departments and functions.

Technical Details

The Compliance Rules Engine applies versioned policy packs spanning HIPAA privacy safeguards, CMS documentation completeness, and Maryland state requirements, generating evidence-linked findings and audit-ready justifications for each rule evaluation.

Alerts are standardized by severity (LOW/MEDIUM/HIGH/CRITICAL) with owner routing, SLA timers, and escalation workflows, and are summarized into an overall Compliance Score (0–100) with drill-downs to remediation steps and policy references.

Architecture: On-premises deployment with secure cloud integration options; Logical Architecture (on-premises first): Ingestion (PDF/text) → Extraction Service (medical LLM with JSON-only prompt discipline and schema validation) → Validation Layer (format, code sets, cross-field rules) → Compliance Engine (policy packs and evidence generation) → Connectors (secure adapters for EHR/databases and ticketing/reporting) → Audit Log Store (immutable) → Operations UI for monitoring and human-in-the-loop reviews.

Deployment: Hybrid architecture supporting both on-premises and secure cloud deployment

Integration: RESTful APIs connecting to audit systems, document management, and workflow systems

Compliance: HIPAA, SOC 2 Type II compliant with FedRAMP-ready architecture

AI Technology: Custom-trained models for healthcare compliance, NLP engines, anomaly detection algorithms

Monitoring: Real-time process monitoring with configurable alerting and escalation workflows

Demonstration Video

Our demonstration includes:

  1. Process Auditing: AI agent automatically reviews mock healthcare processes and identifies potential compliance issues
  2. Violation Detection: Real-time identification of HIPAA privacy violations and CMS regulatory gaps
  3. Risk Assessment: Automated calculation of compliance risk scores and impact analysis
  4. Alert Generation: Immediate notification system with prioritization and routing capabilities
  5. Report Creation: Comprehensive compliance reports with remediation recommendations

Video Access: Click here to download

Service Level Agreements

  • Detection Accuracy: 95% compliance issue identification rate
  • Alert Response Time: Real-time alerts with < 30-second notification delivery
  • False Positive Rate: < 5% to minimize alert fatigue
  • Report Generation: Automated reports within 24 hours of audit completion
  • System Uptime: 99.95% availability with redundant monitoring

Licensing and Pricing Structure

Licensing Model: Per-bot subscription with volume discounts
Pricing Drivers:

  • Number of concurrent bot instances
  • Volume of documents processed monthly
  • Integration complexity (number of source/target systems)
  • Customization requirements
  • Support level (standard vs. premium)

Structure: [Base platform fee] + [per-bot licensing] + [optional professional services for customization and integration]

Custom AI Solutions.

insight Extraction

AI excels at sifting through vast, complex datasets to identify hidden patterns, correlations, and trends that human analysis might miss. This allows businesses in the Washington, DC, and Baltimore, MD regions to move beyond raw data and gain true actionable insights. By automating the process of data analysis and visualization, AI transforms overwhelming information into clear, compelling narratives, enabling smarter, data-driven decisions for your local operations.

Predictive Modeling

Leveraging historical data, AI powers predictive modeling to forecast future outcomes with remarkable accuracy. This capability allows businesses to anticipate market shifts, predict customer behavior, and identify potential risks or opportunities before they fully materialize. From optimizing supply chains and demand forecasting to predicting customer churn, AI provides the foresight needed for proactive strategy and improved decision-making.

Automation & Efficiency

AI significantly enhances data management and analysis by automating time-consuming and repetitive tasks. This includes data collection, cleaning, categorization, and anomaly detection, even for unstructured data like images or text. By streamlining these foundational processes, AI frees up valuable human resources, allowing your team to focus on higher-value, strategic initiatives, ultimately boosting operational efficiency and accelerating your time to insights.

AI is exceptionally adept at solving problems characterized by vast amounts of data, intricate patterns, and the need for rapid, informed decision-making. This includes gleaning actionable information from complex data sets, where AI can analyze millions of data points far faster and more accurately than humans to reveal hidden trends and opportunities. AI is also highly effective in modeling complex supply chain networks to predict disruptions, optimize logistics, and identify efficiencies, as well as in areas like fraud detectionpredictive analytics for sales forecasting, automating repetitive tasks, and enhancing customer support through intelligent chatbots.

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