Locally Deployable Small Language Models for Emergency Department Decision Support: A Systematic Benchmark of Fine-Tuning Strategies

arXiv:2608.10273 · cs.CL, cs.AI · Submitted 2026-08-10 · Read on arXiv

Qingfeng Zhang, Yuanxiong Guo, Yanmin Gong

The University of Texas at San Antonio · Texas A&M University

cs.CL, cs.AI

Submitted: 2026-08-10

Updated: 2026-08-12

Comments: Accepted to AMIA 2026 Annual Symposium

License: http://arxiv.org/licenses/nonexclusive-distrib/1.0/

Importance score: 95/100

The gist: Deploying large language models (LLMs) for decision support in emergency departments (EDs) faces two major challenges: privacy risks of transmitting patient data to closed-source commercial LLMs and

Terminology

Summary

Deploying large language models (LLMs) for decision support in emergency departments (EDs) faces two major challenges: privacy risks of transmitting patient data to closed-source commercial LLMs and the lack of systematic evaluation of fine-tuning strategies for locally deployable open-source small language models (SLMs). We benchmarked eight open-source SLMs using zero-shot prompting, prefix tuning, Low-Rank Adaptation (LoRA), and full fine-tuning on three ED tasks: triage level prediction, specialist referral recommendation, and diagnosis prediction. Using 2,083 MIMIC-IV-ED cases and Claude Haiku 4.5 and Claude Sonnet 4.5 as baselines, we found that LoRA fine-tuned open-source SLMs outperform commercial baselines on triage level prediction and specialist referral recommendation, while diagnosis prediction remains challenging for open-source SLMs. Confusion matrix analysis further shows that fine-tuned open-source SLMs can detect highest-severity patients missed by the commercial baselines. These results demonstrate that locally deployable SLMs can achieve clinically competitive performance for ED decision support.

Improvements for AI systems

Improvements to AI Systems:

  1. Privacy-Preserving Clinical Triage System: Replace reliance on closed-source commercial LLMs with LoRA fine-tuned open-source SLMs (e.g., 7B-13B parameters) that run entirely on local hospital infrastructure. This eliminates transmission of protected health information (PHI) to external servers, ensuring HIPAA/GDPR compliance while maintaining or exceeding baseline accuracy.

  2. High-Severity Patient Detection Enhancer: Integrate the fine-tuned SLM’s confusion matrix insights to build an ensemble alert system. The SLM specifically catches highest-severity patients (e.g., ESI level 1) that commercial baselines (Claude Haiku/Sonnet) miss. The improved system can trigger immediate human review for these flagged cases, reducing missed critical admissions.

  3. Task-Specific Specialist Referral Optimizer: Deploy the LoRA fine-tuned model as a dedicated referral recommender, achieving higher precision than Claude Sonnet 4.5. The system can output ranked specialist suggestions with confidence scores, and—when combined with triage prediction—provide a unified decision-support dashboard for ED physicians, reducing cognitive load and referral errors.

  4. Adaptive Fine-Tuning Pipeline for Resource-Limited EDs: Implement a reusable training framework that takes any open-source SLM and fine-tunes it with LoRA on local ED data (e.g., 2,083 MIMIC-IV-ED cases). The improved system can automatically update itself with new patient outcomes, continuously improving triage and referral accuracy without cloud dependency.

  5. Diagnosis Prediction Fallback Mechanism: Since diagnosis prediction remains weak for open-source SLMs, the improved system uses a hybrid approach: the fine-tuned SLM handles triage and referral, while a separate rule-based or retrieval-augmented module (or a larger local model) handles diagnosis. This prevents over-reliance on the SLM for tasks where it underperforms, ensuring clinical safety.

What the Improved AI System Can Do:

  • Operate fully offline in an ED, processing patient vitals, symptoms, and history to output: (a) triage level (e.g., ESI 1-5), (b) top-3 specialist referrals with rationale, and (c) a provisional diagnosis list (with a warning if confidence is low).

  • Flag highest-severity patients with higher recall than commercial LLMs, enabling earlier intervention.

  • Adapt to a specific hospital’s patient population via local fine-tuning, improving over time.

  • Provide explainable outputs (via attention weights or LoRA adapter analysis) for clinician trust.

  • Reduce operational costs and latency by avoiding API calls to external LLMs, while ensuring data never leaves the hospital network.

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