6 Strategies to Prevent Medical Billing Denials
Insurance companies deny medical bills submitted for reimbursement by providers at a rate as high as 20 percent. According to the business journal Revcycle Intelligence, the American Academy of Family Physicians reports an average medical billing denials rate of 5 to 10 percent among family practice providers. Each denied claim represents lost provider income and time as the billing department must resubmit the claim or forfeit reimbursement. In 2017, Becker’s Hospital Review estimated that a 300-bed hospital could lose up to $3 million in annual revenue with a single percentage point increase in rejected reimbursement claims . Medi c al practices, hospitals, and health systems can dramatically decrease billing denials by identifying the most common reasons and making procedural changes accordingly. In 2021, the Healthcare Financial Management Association (HFMA) reported that about 90 percent of denied claims are preventable, representing more than $235 billion in yearly revenue