arXiv:2604.16364v3 Announce Type: replace-cross Abstract: Background: Clinical notes contain extensive duplicated text from templates, copy-paste, and auto-populated fields ("note bloat"), diluting clinical signal, limiting longitudinal context, and increasing large language model (LLM) costs. Methods: TRACE removes note bloat using note-level EHR metadata to identify templated and copied content, with frequency-based de-duplication when metadata are unavailable. We evaluated TRACE using blinded physician span review and gold-standard templated-text annotations across four cohorts spanning liver transplant, obstetrics, and inpatient populations at multiple health systems (5.3M notes). We compared zero-shot LLMs and embedding-based classifiers using original and TRACE-processed notes for 20 information extraction tasks and prediction of 5-year survival, postpartum hemorrhage, and 30-day readmission. Results: Only 0.3-6.6% of removed text was flagged as author-generated; TRACE captured 86% of annotated templated characters. Information extraction F1 differences averaged by cohort ranged from -0.009 to +0.004; task-specific prediction F1 differences ranged from -0.011 to +0.018. Among 1,000 randomly sampled Stanford Health Care patients, TRACE reduced chart text by 47.3% (742.7M characters), averaging 220,167 fewer tokens per patient. Using 2024 encounter volumes at a large tertiary academic center and one query per encounter, projected three-year net savings ranged from $1.00M to $13.58M across evaluated model pricing schemes, including initial and annual TRACE processing costs. Conclusion: TRACE substantially reduces clinical note redundancy while preserving information extraction and prediction performance. Underused EHR metadata can reduce LLM inference costs, expand usable longitudinal context, and support scalable clinical AI.