Delayed reimbursement from incorrect or missing eligibility verification
Definition
When insurance eligibility is not verified accurately at intake, claims are rejected for coverage issues and must be reworked, significantly delaying payment. This extends accounts receivable days and strains practice cash flow.
Key Findings
- Financial Impact: RCM vendors report that front‑end demographic and insurance errors are among the top drivers of denials and rework, and that preventable leakage (including such denials) can reach up to 5% of revenue; the cash‑flow impact appears as longer AR and more staff time per dollar collected.[3][8][5]
- Frequency: Daily
- Root Cause: Reliance on manual eligibility checks, failure to standardize pre‑service verification, and not tying appointment scheduling to eligibility windows result in claims being submitted with ineligible coverage or lapsed plans.[5][1][3]
Why This Matters
This pain point represents a significant opportunity for B2B solutions targeting Physicians.
Affected Stakeholders
Front desk staff, Billing specialists, Revenue cycle managers, Practice administrators
Deep Analysis (Premium)
Financial Impact
$10,000-$18,000 annually per provider from slow TRICARE collections • $10,000-$18,000 annually per provider from VBC member claim denials and re-registration rework • $10,000-$20,000 annually per provider from delayed WC collections
Current Workarounds
Counselor calls insurance manually during appointment to verify coverage, patient payment estimates delayed, phone calls with insurers during session • Counselor manually calls employer/carrier to verify WC coverage, phone calls to confirm authorization, email verification requests • Counselor manually calls Medicare to verify coverage during appointment, spreadsheet lookup of Medicare parts, email confirmation requests
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
Front‑end intake and eligibility errors driving preventable denials
Missed point‑of‑service patient collections due to poor financial intake
Excess administrative labor to fix intake and eligibility mistakes
Throughput bottlenecks from slow, manual intake and eligibility checks
Rework and write‑offs from poor‑quality registration and coverage data
Patient frustration and attrition from confusing intake and coverage discussions
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