In November 2023, the American Academy of Professional Coders (AAPC) made a move that surprised many in the association world: they acquired Semantic Health, an AI company focused on medical coding and auditing. This wasn't a defensive play against disruption. It was the culmination of years of strategic thinking about how artificial intelligence would transform their profession.
The story begins three to four years earlier, when many associations were just starting to notice AI's potential impact. AAPC was already asking fundamental questions about their profession's future. They recognized that medical coding—with its rules-based processes and structured workflows—would likely be one of the first healthcare areas where AI could make a real difference. Rather than wait to see what would happen, they decided to help shape that future.
What makes AAPC's approach particularly instructive is how they moved from asking questions to taking action. Through partnership, learning, and ultimately acquisition, they transformed potential disruption into member opportunity. Their journey offers valuable lessons for any association grappling with how to approach AI strategically rather than reactively.
Three to four years ago, while most of us were still marveling at Alexa's ability to set timers, AAPC was having different conversations. They recognized something critical: medical coding would be one of the first places in healthcare where AI would make serious inroads.
Think about the timing. This was before the generative AI explosion, before every conference had an AI track, before members were nervously asking about their futures. AAPC was already wrestling with questions that wouldn't become urgent for others until much later: What does a future generation of medical coding look like? What does a coder look like working alongside AI?
According to Dr. Nicola Sahar, who co-founded Semantic Health and joined AAPC through the 2023 acquisition, the association was remarkably forward-thinking. They were determined to be thought leaders and innovators in how AI would integrate with medical coding, auditing, and clinical documentation improvement.
This wasn't crystal ball gazing. It was strategic leadership recognizing that the time to shape your profession's future is before that future arrives at your doorstep.
AAPC's journey into AI didn't start with a bold acquisition. It began with something far more modest: exploring how to integrate Semantic Health's AI platform with AAPC's existing business solutions.
To understand why this partnership mattered, you need to know what Semantic Health built. Their AI-powered platform audits coded inpatient charts, validating diagnosis and procedure codes against clinical documentation. It identifies coding opportunities that humans might miss, flags potential documentation issues, and helps reduce claim denials. Essentially, it acts as an AI-powered assistant that helps medical coders work faster and more accurately—catching errors, suggesting appropriate codes, and ensuring nothing gets missed in hundreds of pages of clinical notes.
As the nation's largest education and credentialing organization for medical coders with 250,000 members, AAPC already had significant technology assets including codify software and grouping tools. They'd been investing in their technology business line for years, building infrastructure that would later make AI integration possible.
The initial partnership seemed straightforward: integrate Semantic's AI capabilities with AAPC's tools to create a combined technology offering. But during those integration discussions, the conversations evolved from technical specifications to strategic possibilities.
For Semantic Health, AAPC represented more than a partnership opportunity. Here was an association actively thinking about how to marry AI with medical coding, asking sophisticated questions about the profession's future. For AAPC, Semantic Health offered a chance to accelerate their AI vision with proven technology and expertise.
The November 2023 acquisition revealed the depth of AAPC's strategic thinking. This wasn't about eliminating competition or controlling technology. It was about ensuring their members could thrive in an AI-enhanced future.
During our conversation on the Sidecar Sync Podcast, Dr. Sahar explained the mutual vision: accelerating their ability to deploy cutting-edge AI technology for auditing inpatient services while improving data quality and optimizing revenue cycle management efficiency.
By bringing Semantic Health's team and technology in-house, AAPC positioned itself to directly shape how AI would augment their members' work. The platform's ability to scan through massive amounts of clinical documentation, suggest appropriate codes, and identify revenue opportunities would now be developed with direct member input and deep professional understanding.
Perhaps the most telling aspect of AAPC's approach is their focus on education. Dr. Sahar revealed that AAPC was developing an AI primer course for members—a move that transforms AI from threat to skill.
The association understood that successful AI adoption requires three types of knowledge: what AI actually is (a statistical model, not magic), where its limitations lie, and how professional roles will evolve rather than disappear.
This educational focus aligns perfectly with AAPC's core identity. As an education and credentialing organization, they're not just providing tools—they're ensuring members know how to use them effectively. Instead of members wondering if they'll be replaced, they're learning how to become AI-enhanced professionals.
>> Related: For associations looking to provide similar AI education to their members, Sidecar offers comprehensive AI training programs designed specifically for association audiences. More info here.
What does it actually mean to think three to four years ahead? AAPC was exploring these questions before AI became a pressing concern for most organizations. They were imagining coders working with AI before that scenario seemed imminent.
This forward-thinking created options. When AI's potential became undeniable, AAPC wasn't scrambling to catch up. They had relationships, understanding, and infrastructure in place. They could move from exploration to action while others were still processing what AI might mean.
AAPC's story reveals a fundamental truth: associations don't have to be victims of technological change. They can be architects of how that change unfolds. The medical coding profession could have been disrupted by AI companies that didn't understand the nuances of the work. Instead, their association ensured that AI development would be guided by professional expertise and member needs.
Dr. Sahar emphasized that working with AAPC meant building tools with coders' real needs in mind, not just what outsiders assumed those needs might be. The difference between disruption and transformation often comes down to who's driving the change.
Not every association needs to acquire an AI company. But every association needs to think strategically about AI's role in their profession's future. The AAPC-Semantic Health story offers a blueprint:
Start with curiosity, not crisis. Begin exploring AI when you have time to be thoughtful, not when you're forced to react.
Build innovation capacity incrementally. Technology initiatives and educational programs create the foundation for bigger moves later.
Use partnerships as learning laboratories. Early collaborations help you understand both the technology and the strategic possibilities.
Put member needs at the center. Whether building, buying, or partnering, ensure that AI development serves your members' real challenges.
Lead with education. Help members understand AI's capabilities and limitations so they can adapt confidently rather than fearfully.
The window to shape how AI enters your profession won't stay open forever. AAPC saw AI coming for medical coding and chose to lead that transformation. They asked hard questions when it was still comfortable to avoid them. They built capabilities before they were desperately needed. They turned a potential threat into a member advantage.
The result? Their members aren't wondering if AI will replace them. They're learning how to use AI to deliver better work, faster, with tools designed specifically for their needs by an association that chose to lead.
Every association faces the same choice: wait for AI to transform your profession, or help guide that transformation. AAPC's story proves that associations—even in technical fields—can successfully lead their members into the AI era.
The question isn't whether AI will affect your profession. It's whether you'll have a say in how.