Domain Fine-Tuning vs. Retrieval-Augmented Generation for Medical Multiple-Choice Question Answering: A Controlled Comparison at the 4B-Parameter Scale
Authors: Avi-ad Avraam Buskila
Organizations: Department of Information Science and Applied Artificial Intelligence, Bar-Ilan University, Ramat-Gan, Israel
Abstract
Practitioners deploying small open-weight large language models (LLMs) for medical question answering face a recurring design choice: invest in a domain-fine-tuned model, or keep a general-purpose model and inject domain knowledge at inference time via retrieval-augmented generation (RAG). We isolate this trade-off by holding model size, prompt template, decoding temperature, retrieval pipeline, and evaluation protocol fixed, and varying only (i) whether the model has been domain-adapted (Gemma 3 4B vs. MedGemma 4B, both 4-bit quantized and served via Ollama) and (ii) whether retrieved passages from a medical knowledge corpus are inserted into the prompt. We evaluate all four cells of this 2x2 design on the full MedQA-USMLE 4-option test split (1,273 questions) with three repetitions per question (15,276 LLM calls). Domain fine-tuning yields a +6.8 percentage-point gain in majority-vote accuracy over the general 4B baseline (53.3% vs. 46.4%, McNemar p < 10^-4). RAG over MedMCQA explanations does not produce a statistically significant gain in either model, and in the domain-tuned model the point estimate is slightly negative (-1.9 pp, p = 0.16). At this scale and on this benchmark, domain knowledge encoded in weights dominates domain knowledge supplied in context. We release the full experiment code and JSONL traces to support replication.
In medical multiple-choice question answering (MCQA), Retrieval-Augmented Generation (RAG) can supplement the domain knowledge of language models (LMs). However, since vanilla RAG indiscriminately utilizes retrieved documents, it can degrade LM performance. To address this, we propose MedJudgeRAG. Our framework represents retrieved documents as a dynamic knowledge graph (KG) composed of entities and relations. For each option, the model judges an evidence verdict from the retrieved documents and the KG. Based on the verdict combination, the model determines a knowledge utilization strategy to reason toward the final answer. These capabilities are trained via supervised fine-tuning using structured reasoning traces generated by a teacher LM. The training employs a weighted cross-entropy loss that differentially weights the KG and reasoning segments. Experiments on two medical MCQA benchmarks demonstrate that MedJudgeRAG consistently outperforms both vanilla RAG and parametric baselines. Furthermore, ablation analysis reveals that the dynamic KG is more effective as graph-conditioned supervision at training time than as an explicit output at inference time. Our code is available at https://github.com/hyu-amllab/medjudgerag, and the generated reasoning traces are released at https://huggingface.co/datasets/youarethewon/medjudgerag.
Medical question answering is a high-stakes setting where factual errors can have serious consequences. Retrieval-augmented generation (RAG) is widely viewed as a promising solution, and prior work has reported substantial gains for large medical QA models. We revisit this assumption across a broad range of open-weight instruction-tuned models spanning 7B to 72B parameters. Across five models, ten biomedical QA datasets, four retrieval methods, and four retrieval corpora, we find that retrieval yields only small and inconsistent improvements over a no-retrieval baseline, typically within 1-2 points. In contrast, the choice of backbone model has a much larger effect than the choice of retriever or corpus, and expert and layman retrieval sources perform similarly in most settings. These results suggest that the main bottleneck is not retrieval quality alone, but the model's limited ability to use retrieved evidence effectively.
Open medical language models have converged on a single scale: every widely used system runs at 7B parameters or more, leaving the sub-billion regime uncharacterized. We present MedLLM, an open 0.1B-parameter medical language model trained through a fully open three-phase pipeline: general pretraining with curriculum sequence-length scheduling, domain fine-tuning on MedFineWeb, a reference-guided medical corpus we release that is selected from general web data by embedding similarity to medical question-answering (QA) data, and preference-aligned fine-tuning combining SFT with direct preference optimization (DPO). Across medical benchmarks, MedLLM shows a pattern visible only at sub-billion scale: medical competence does not degrade uniformly under compression but splits by task type. On context-grounded QA it comes within 2.9pp of a medically adapted 7B model and surpasses the instruction-tuned and general-purpose 7B baselines; on knowledge-recall QA it stays near the task floor on clinical-vignette MedQA yet significantly exceeds every 7B and sub-7B baseline on MedMCQA, indicating that where recall fails the constraint is model capacity rather than adaptation. This dissociation is masked at 7B, where both capabilities are present, and surfaces only when capacity is scarce.
Maxx Richard Rahman, Asim Ahmed, Mihan Mohagheghzadeh +1