πŸ‡ΊπŸ‡ΈUnited States

Payment Denials and Delays from Inadequate Payer Source Verification

1 verified sources

Definition

Failure to properly verify payer sources and credentials during resident admission leads to claim denials or payment delays from insurers and government programs. Nursing homes experience revenue loss as services are provided without confirmed reimbursement eligibility. This occurs systemically due to incomplete primary source verification (PSV) processes.

Key Findings

  • Financial Impact: $Unknown - documented as recurring revenue loss without quantified figures
  • Frequency: Ongoing with every admission cycle
  • Root Cause: Manual or incomplete PSV and eligibility checks fail to meet payer standards like NCQA, resulting in unbillable services.

Why This Matters

This pain point represents a significant opportunity for B2B solutions targeting Nursing Homes and Residential Care Facilities.

Affected Stakeholders

Admissions coordinators, Billing staff, Revenue cycle managers

Deep Analysis (Premium)

Financial Impact

$1,000-$3,000 per claim resubmission cycle (staff time, processing delays, appeals) β€’ $1,500-$4,000 per hospice admission (high-touch verification, appeals for coordination errors) β€’ $1,500-$4,000 per resident per month (Medicaid dependent population, 40-50% of census), secondary coverage misalignment adds 20% appeals workload

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Current Workarounds

Admissions and billing staff manually call payers, log into multiple payer portals, and exchange screenshots and notes via email and paper folders; they track eligibility notes in Excel or on paper instead of an integrated eligibility/PSV workflow. β€’ Admissions checks rough coverage via payer portals or calls, but often relies on hospital case manager assurances and defers detailed checks to billing; notes are free-text in the EHR or on paper. β€’ Admissions collects financial disclosures and application status verbally from families, keeps notes in paper files or simple trackers, and relies on later confirmation from business office staff.

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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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