LGAIMay 28, 2025

Reinforcement Learning for Out-of-Distribution Reasoning in LLMs: An Empirical Study on Diagnosis-Related Group Coding

arXiv:2505.21908v26 citationsh-index: 7
Originality Incremental advance
AI Analysis

This addresses the labor-intensive task of DRG coding for hospital reimbursement and operations, but it is incremental as it builds on existing methods with domain-specific enhancements.

The paper tackled the problem of automated Diagnosis-Related Group (DRG) coding from clinical notes, where large language models struggle due to out-of-distribution data, and introduced DRG-Sapphire using reinforcement learning to achieve state-of-the-art accuracy on the MIMIC-IV benchmark and generate physician-validated reasoning.

Diagnosis-Related Group (DRG) codes are essential for hospital reimbursement and operations but require labor-intensive assignment. Large Language Models (LLMs) struggle with DRG coding due to the out-of-distribution (OOD) nature of the task: pretraining corpora rarely contain private clinical or billing data. We introduce DRG-Sapphire, which uses large-scale reinforcement learning (RL) for automated DRG coding from clinical notes. Built on Qwen2.5-7B and trained with Group Relative Policy Optimization (GRPO) using rule-based rewards, DRG-Sapphire introduces a series of RL enhancements to address domain-specific challenges not seen in previous mathematical tasks. Our model achieves state-of-the-art accuracy on the MIMIC-IV benchmark and generates physician-validated reasoning for DRG assignments, significantly enhancing explainability. Our study further sheds light on broader challenges of applying RL to knowledge-intensive, OOD tasks. We observe that RL performance scales approximately linearly with the logarithm of the number of supervised fine-tuning (SFT) examples, suggesting that RL effectiveness is fundamentally constrained by the domain knowledge encoded in the base model. For OOD tasks like DRG coding, strong RL performance requires sufficient knowledge infusion prior to RL. Consequently, scaling SFT may be more effective and computationally efficient than scaling RL alone for such tasks.

Foundations

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