Beamtree (ASX:BMT) has inked a A$600,000 bundle of contracts across Australia, Canada, and the U.K. to reportedly automate hospital clinical coding operations.

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Clinical coding refers to the standardised lexicon of alphanumeric codes used by hospitals around the world to effectively ‘shorthand’ specific diagnoses and other patient datum.

According to Beamtree – which didn’t provide a source – clinical coding errors by human hand cost hospital reimbursements some A$20B globally.

“Each contract is subject to the usual rights of termination for non-performance,” Beamtree added on Monday.

Shares jumped 8.7% to 25cps, showing a healthy reaction, however, that was on turnover of only $2,000 according to a third-party service porting Morningstar data. In other words: The stock is straddled by illiquidity.

This isn’t Beamtree’s first foray into the medical space. It recently expanded into Saudi Arabia with the same modus operandi.

The big question, of course, will be if Beamtree’s AI is any good. Even the “AI” models advertised as being the most advanced on the market frequently make mistakes. True believers generally try to avoid talking about that.

Beamtree, of course, sees a way for hospitals to spend more time on care, by automating manual data entry jobs. A handy pitch, but if they can pull it off, one that probably does pose a chunky value proposition.

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“Autonomous coding will be a material driver of our future growth and these contract wins provide a foundation for this pioneering product,” Beamtree CEO Marek Stepniak said.

“I want to thank our customers in supporting this innovation.”

By that, Stepniak means the hospitals adopting the tech. Make of that what you will.

BMT last traded at 25cps.

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