Lost Patient Care Capacity Due to Prior Authorization Bottlenecks
Definition
Physicians complete 39-41 prior authorizations weekly, consuming 13-15 hours that could be used for patient visits. This creates queues, idle time between tasks, and lost billable appointments. 93% of physicians report care delays from these administrative burdens.
Key Findings
- Financial Impact: $437 million annually in potential savings from efficiency
- Frequency: Daily
- Root Cause: Time-intensive manual submissions and follow-ups instead of automated systems
Why This Matters
This pain point represents a significant opportunity for B2B solutions targeting Physicians.
Affected Stakeholders
Physicians, Practice managers, Nurses
Deep Analysis (Premium)
Financial Impact
$103,000 annually per FTE from multi-system VBO PA data consolidation; $189,000+ from unclear VBO performance impacting member retention β’ $103,000 annually per FTE from referral coordination delays; $267,000 from lost referral revenue due to care delays (93% experience delays) β’ $112,000 annually per FTE from Medicare-specific PA research overhead; $201,000 from lost patient revenue due to treatment delays and patient cancellations
Current Workarounds
Billing manager and care coordination staff manually reconcile payer PA rules with value-based contracts using spreadsheets and emailed care plans, then submit and track PAs through standard portals and faxes. β’ Billing manager and clinical staff manually track PA status outside the EHR using paper folders, shared Excel trackers, payer portals, fax confirmation sheets, and phone logs to avoid losing authorizations in the backlog. β’ Billing manager keeps separate cheat sheets for Tricare rules, uses Tricare portals and faxed forms, and tracks approval timelines in Excel or calendar reminders to avoid expired authorizations.
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Evidence Sources:
- https://www.ama-assn.org/practice-management/prior-authorization/fixing-prior-auth-nearly-40-prior-authorizations-week-way
- https://www.priorauthtraining.org/in-pursuit-of-faster-prior-authorization-determinations-top-5-issues-to-avoid-insider-tips-from/
- https://coniferhealth.com/knowledge-center/five-benefits-of-automation-in-boosting-authorization-efficiency/
Related Business Risks
Excessive Staff Time on Manual Prior Authorization Processing
Delayed Reimbursements from Prior Authorization Denials and Rework
Patient Treatment Abandonment and Churn from Prior Authorization Delays
Bottlenecks in Documentation-Coding Handoff
Under-coding and Missed Charge Capture in E/M Coding
Missed Charges and Coding Errors in E-Prescribing to Billing Workflow
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