With their growing capabilities, generative large language models (LLMs) are being increasingly investigated for complex medical tasks. However, their effectiveness in real-world clinical applications remains underexplored. To address this, we present CliniBench, the first benchmark that enables comparability of well-studied encoder-based classifiers and generative LLMs for discharge diagnosis prediction from admission notes in MIMIC-IV dataset. Our extensive study compares 12 generative LLMs and 3 encoder-based classifiers and demonstrates that encoder-based classifiers consistently outperform generative models in diagnosis prediction. We assess several retrieval augmentation strategies for in-context learning from similar patients and find that they provide notable performance improvements for generative LLMs.

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