πŸ‡ΊπŸ‡ΈUnited States

Delayed Reimbursements from Prior Authorization Denials and Rework

2 verified sources

Definition

Prior authorization delays and denials lead to claim denials, with over 60% of denied claims never resubmitted, slowing payment cycles. Manual processes cause back-and-forth communications, extending time-to-cash. This results in high accounts receivable days and cash flow strain for physician practices.

Key Findings

  • Financial Impact: Billions annually in denied claims
  • Frequency: Weekly
  • Root Cause: Inaccurate coding, incomplete documentation, and failure to use provider portals

Why This Matters

This pain point represents a significant opportunity for B2B solutions targeting Physicians.

Affected Stakeholders

Billing staff, Revenue cycle managers, Physicians

Deep Analysis (Premium)

Financial Impact

$100,000-$250,000 annually (Medicaid denial rate 15-20%; unresubmitted claims) β€’ $100,000-$300,000 annually (delayed reimbursement + staff overtime for follow-ups) β€’ $100,000-$350,000 annually (lost revenue; staff overtime; AR aging)

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Current Workarounds

Compliance Officer builds carrier-specific approval checklists and tracks comp-related denials manually, often handling exceptions one by one with adjusters via calls and emails. β€’ Compliance Officer cobbles together state Medicaid PA rules and managed Medicaid plan bulletins in spreadsheets and distributes them to staff, relying on spot checks of denied claims to refine the guidance. β€’ Compliance Officer compiles Tricare authorization policies and distributes static summaries, then manually intervenes on problem claims and appeals when patterns of denial emerge.

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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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