๐Ÿ‡บ๐Ÿ‡ธUnited States

Delayed Cash Collection from Prolonged Denial Appeals

2 verified sources

Definition

Denials in laboratory claims extend the time-to-cash cycle as labs spend weeks or months on analysis, appeals, and resubmissions for issues like timely filing and authorization. Slow verification and payer communication drags out reimbursements, increasing Accounts Receivable days. Systemic delays occur without automated workflows, leading to chronic cash flow strain.

Key Findings

  • Financial Impact: Denial rates targeted under 5% (implying multi-million annual drag for large labs)
  • Frequency: Weekly
  • Root Cause: Manual denial tracking, poor payer communication, and missed timely filing windows

Why This Matters

This pain point represents a significant opportunity for B2B solutions targeting Medical and Diagnostic Laboratories.

Affected Stakeholders

accounts receivable staff, appeals coordinators, CFOs

Deep Analysis (Premium)

Financial Impact

$1.2M+ annual. โ€ข $1.5M+ from commercial claim delays. โ€ข $1.8M+ government payer losses.

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Current Workarounds

Billing and back-office staff export denial lists from the billing system into Excel, maintain colorโ€‘coded trackers for appeal deadlines by payer, store payer-specific rules in shared Word/PDF or email threads, and pass complex cases around via email and phone calls because the LIS and billing systems lack integrated denial workflow and timer-based task routing. โ€ข Compliance spreadsheets and portal manual checks. โ€ข Credentialing and billing teams manually cross-check payer portals and internal spreadsheets to confirm provider enrollment status, then email or call payers one-by-one and track follow-ups in Excel and personal notes to clear denials and resubmit claims.

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

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