CLExEval: A Human-in-the-Loop Framework for Qualitative Evaluation of LLM Clinical Reasoning

Large Language Models (LLMs) achieve strong results on many medical benchmarks, but their clinical reasoning remains difficult to evaluate reliably. A central risk is an evaluation illusion: fluent and well-structured explanations can appear clinically convincing even when the final diagnosis is incorrect. We introduce CLExEval, a human-in-the-loop framework for evaluating LLM clinical reasoning under progressive information masking. CLExEval combines 5,600 expert-physician annotations with 200 clinical reasoning traces derived from 40 rare diagnostic cases. Our analysis identifies three recurring failure patterns: (i) verbosity bias, where GPT-4o-mini's diagnostic accuracy drops from 95.0% to 32.5% under information scarcity; (ii) a hidden knowledge paradox, where a specialist model reaches 92.5% maximum diagnostic potential but fails to retrieve that knowledge reliably in verbose contexts; and (iii) a 68.6% reasoning-to-output mismatch, where correct diagnoses appear in reasoning traces but are not reflected in final answers. We further evaluate the LLM-as-a-Judge paradigm on a human-verified failure set (n = 142). GPT-4o-mini approved 47.9% of clinically incorrect outputs, while HuatuoGPT-o1 approved all validly scored failures and showed a positive self-preference bias. These results suggest that standalone automated clinical evaluations can substantially overestimate clinical reliability without expert-grounded validation.