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For The Record
E-Newsletter    April 2026
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Editor's E-Note

CMS is implementing a pilot program using AI for medical record review. The program aims to evaluate the possible role of AI in medical documentation management and processing. Although AI has the potential to streamline processes and relieve overburdened HIM professionals, it does come with some caveats. In this month’s newsletter, we’re taking a look and the benefits and risks of expanded AI use, as well as its HIPAA implications.

In addition to reading our e-newsletter, be sure to visit For The Record’s website at www.fortherecordmag.com. We welcome your feedback at edit@gvpub.com. Follow For The Record on Facebook and X, formerly known as Twitter, too.

Dave Yeager, editor
In This E-Newsletter

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AI, Medical Records Review, and HIPAA Implications

By Elizabeth S. Goar

In February 2026, CMS awarded a $4.28 million contract to ePathUSA to conduct a two-year pilot program to test the viability of leveraging AI for medical record review (MRR). The program, part of CMS’s push to modernize its medical records management infrastructure, is meant to evaluate the role of optical character recognition, machine learning, natural language processing, and other AI tools in enhancing medical documentation management and processing.

The CMS AI MRR pilot offers several anticipated benefits, says Alexandra Moylan, an attorney, shareholder, and member of Baker Donelson’s Health Law Group and Data Protection, Privacy, and Cybersecurity Team. While AI-enabled MRR has the potential to make Medicare oversight faster, more consistent, and more sustainable for payers, providers, and patients, “HIPAA compliance considerations arise when sensitive medical records are processed through third-party AI systems,” she says.

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