How AI Plays Its Tricks: Interpreting the Superior Performance of Deep Learning-Based Approach in Predicting Healthcare Costs

Abstract

Artificial Intelligence, especially deep learning based approaches, has been criticized for its \black-box approach in recent years. The lack of interpretability of their performance makes people uncomfortable when applying these models in critical situations. In this study, we aim to contribute to the interpretability of the deep learning model in predicting healthcare costs. We propose to use long short-term memory based recurrent neural network to incorporate the sequential information for more accurate healthcare cost predictions. We first compare the performance of our deep learning approach with traditional machine learning methods including linear regression, lasso regression, ridge regression, and random forest. Among all the methods, deep learning shows the best performance. The superior performance of the deep learning model is further confirmed in subgroup analyses of patients. We then propose a novel interpretation method to examine how the deep learning model performs differently from other methods when facing fluctuations in the monthly costs. We find that while most traditional prediction models are getting worse with greater fluctuation in the data, the deep learning model can incorporate the fluctuation information and gain in prediction accuracy. Our work makes important contributions to the interpretability of deep learning models for more accurate prediction of healthcare costs.