The True Cost of Medical Claim Denials in Healthcare

 

According to a survey, claim denials are considered the biggest obstacle in revenue cycle management, with over 20% of providers reporting an annual loss of $500K due to these denials.

A recent survey of healthcare leaders conducted by leading medical billing company revealed that claim denials are causing a significant and costly issue for healthcare revenue cycle management (RCM). The survey included several healthcare organizations with annual revenue ranging from $25 million to $5 billion and RCM teams consisting of 50 to 700 people.

The survey found that more than half of the respondents (58 percent) ranked claim denials as their organization’s greatest RCM challenge, second only to “specific payer challenges” (44 percent). Other RCM challenges included staffing (41 percent), cost of collections (26 percent), and policy changes like The No Surprises Act (21 percent).

The survey also showed that nearly 42 percent of respondents reported that denials management is one of the stages in the RCM process that is regularly backlogged. Additionally, claim denials are costly for healthcare organizations.

According to the survey, 22 percent of respondents reported that their healthcare organization loses over half a million dollars in annual revenue due to denied claims, while 10 percent experience losses of over $2 million.

https://www.allzonems.com/the-true-cost-of-claim-denials-in-healthcare/

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