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Leveraging deep learning for healthcare insurance fraud detection
Thesis   Open access

Leveraging deep learning for healthcare insurance fraud detection

Precious Sihle Shungube
Master of Applied Data Science, University of Johannesburg
2024
Handle:
https://hdl.handle.net/10210/517945

Abstract

Insurance fraud-Prevention Deep learning (Machine learning) Health Insurance
Healthcare fraud poses a significant global financial and operational challenge, undermining the economic stability of healthcare systems and eroding trust in service delivery. Traditional approaches to fraud detection, particularly those based on machine learning, struggle to adapt to the complexity and dynamic nature of fraudulent activities. This limited scope dissertation addresses these challenges by investigating the use of three deep learning (DL) models, namely, artificial neural network (ANN), convolutional neural network (CNN), and long short-term memory (LSTM) networks, alongside a baseline random forest (RF) classifier, for healthcare insurance fraud detection. The study utilises a publicly available dataset (data.world), which includes patient demographics, claim amounts, diagnostic codes, and procedure types. The methodology involves comprehensive data preprocessing to address missing values and class imbalance, followed by training the DL models and the RF classifier using standard architectures optimised for the task. Evaluation metrics such as accuracy, precision, recall, and F1-score were used to assess model performance. Results showed that LSTM achieved the best overall performance with an accuracy of 0.94, precision of 0.78, recall of 0.5, and F1-score of 0.6, while CNN excelled in accuracy, and ANN effectively reduced false negatives, a crucial metric in fraud detection. The RF classifier served as a baseline model, providing a comparative benchmark for evaluating the effectiveness of deep learning approaches. Furthermore, to enhance model transparency and interpretability, local interpretable model-agnostic explanations (LIME) was incorporated. This study underscores the potential of integrating DL models with explainable artificial intelligence (XAI) techniques to improve decision-making and address the complex challenges of healthcare insurance fraud detection while highlighting the comparative advantage of deep learning over traditional machine learning approaches.
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