Tackling GenAI Hallucinations in Healthcare

Written byCapria Value-Add
April 9, 2025

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The Hallucination Problem in Medical AI

As we have all experienced, LLMs can generate realistic but false information, a state politely called “hallucinating, ” but maybe more accurately described as “authoritative bullsh###ing”, which is an urgent threat in the medical field, where accuracy is a matter of utmost importance. Improperly managed LLMs can make treatment or alter clinical summaries, compromising patient safety and depleting trust in AI medical products.

Real-life instances of such errors have been documented; AI transcription software has created words that do not exist, and medical summaries have included fabricated information. These errors can result in misdiagnoses or poisonous treatments. Recent studies, however, offer potential solutions to minimize these risks and open the door to safer and more reliable AI applications in healthcare.

Potential Solutions

1. RAG: Grounding Language Models in External Knowledge 

RAG enhances LLMs by using them to draw only on provided  up-to-date documents during inference. Instead of relying on the internal knowledge graph of the model, it retrieves pertinent information from a trusted source, say peer-reviewed articles or clinical guidelines, and uses it to generate answers.

The study concluded that RAG models beat the traditional prompt as well as human-authored templates significantly in the following areas:

  • Factual accuracy
  • Clinical relevance
  • Reduction in hallucination rates

RAG not only provided more accurate answers but also helped models stay aligned with domain-specific terminology and current standards of care.

2. Prompt Engineering and Post-processing

The other line of defense is in carefully designed prompts that explicitly define the task and domain, constraining ambiguity on what the model should do. In addition, fact-checking modules that validate model outputs after generation (post-processing) via iterative feedback can flag or correct potentially harmful errors before they reach end users.

3. Measuring Effectiveness with BERTScore

In addition to prompt design and post-processing, it’s equally important to evaluate how well these approaches reduce hallucinations. The study Mitigating Hallucinations in Large Language Models used BERTScore, a metric that compares the semantic similarity between AI-generated and human-written templates. This helped measure how effectively RAG preserved factual accuracy and relevance in clinical content.

Challenges That Remain

While these methods show promise, the problem isn’t entirely solved. Some of the ongoing challenges include:

  • Detecting hallucinations automatically remains difficult, especially when the errors are subtle.
  • Evaluating model reliability consistently across tasks and datasets is still an evolving science.
  • Even with RAG, misinterpretation of retrieved content can still occur if the model lacks deep reasoning ability.

Moreover, balancing efficiency, cost, and performance while implementing these safeguards remains a technical and organizational challenge for many healthcare startups and institutions.

A Path Forward

Based on the findings from these studies, the most promising path forward involves a multi-layered strategy:

  • Train on high-quality, domain-specific datasets
  • Incorporate RAG to dynamically retrieve up-to-date knowledge and provide the ground truth for all answers
  • Use strong prompt design patterns (e.g., few-shot, chain-of-thought)
  • Apply real-time fact-checking or verification layers

Involve human oversight, especially for clinical use

These layers collectively build resilience into the system, reducing the likelihood of hallucinations and improving trust in AI-generated content.

Why It Matters

Getting this work done could transform medicine. Companies are already using AI to produce accurate consultation notes in an instant, freeing up doctors to focus on patients, and answering complex questions with accuracy. The medRxiv study predicts this future, since RAG templates score highly for utility. The arXiv study also suggests that overcoming hallucinations could make AI a trusted aide to clinical decisions, improving the quality of care across the board.

For now, hallucinations are a stubborn problem, but they’re not unbeatable.

References: 

​​https://arxiv.org/html/2408.13808v1

https://www.medrxiv.org/content/10.1101/2024.09.27.24314506v1.full

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