Unpaid therapy visits when pre-authorization is missed or mishandled
Definition
Physical, occupational, and speech therapy often require pre-authorization; if it is not secured or renewed correctly, insurers are under no obligation to pay and the practice or patient is left with the full bill. This leads to services already rendered that are either written off or never collected.
Key Findings
- Financial Impact: Commonly 10–20 denied visits per month in a small practice; at ~$100–$150 per visit this is ~$1,000–$3,000/month ($12,000–$36,000/year) in preventable lost revenue.
- Frequency: Daily
- Root Cause: Front desk and therapists fail to obtain or renew authorizations on time, submit incorrect CPT/diagnosis codes, or do not understand each plan’s specific pre-authorization rules, so payers legally deny payment for otherwise valid care.[3][4]
Why This Matters
This pain point represents a significant opportunity for B2B solutions targeting Physical, Occupational and Speech Therapists.
Affected Stakeholders
Front desk/registration staff, Billing specialists, Physical therapists, Occupational therapists, Speech-language pathologists, Practice owners/clinic managers
Deep Analysis (Premium)
Financial Impact
$1,500-$2,500/month from Medicaid pre-auth gaps; annual impact $18,000-$30,000 • $1,500-$3,000/month in denied claim write-offs (10-20 visits × $100-$150); admin rework on appeals • $100-$300/month in SNF pre-auth gaps (lower impact due to pre-funded model, but still real)
Current Workarounds
Authorization details, claim numbers, and attorney/adjuster approvals are stored in free-form EHR notes and separate spreadsheets, with staff chasing faxes, letters, and emails and relying on memory to confirm that treatment has truly been authorized. • Authorization status is tracked with SNF census reports, shared spreadsheets, and hand-annotated therapy schedules, with therapists relying on memory and occasional checks of payer portals to ensure coverage is active. • Excel spreadsheet with manual tracking, phone calls to insurance, WhatsApp reminders to therapists, paper authorization log
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
Expired or exhausted authorizations leading to denied or underpaid claims
Labor-intensive manual pre-authorization and verification work
Claim denials and rework due to pre-authorization errors
Delays in starting therapy and prolonged time-to-cash from slow payer approvals
Empty appointment slots and lost billable hours from authorization-related scheduling gaps
Poor therapy scheduling and care-plan decisions due to incomplete benefit and authorization visibility
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