According to the Advisory Board’s latest revenue cycle survey, denials cost the average hospital $3.5M a year.
The biennial survey included information provided by senior executives at 90 hospitals and health systems, as well as data from nearly 300 additional healthcare organizations.
According to the survey, the number of denials hospitals wrote off as uncollectable increased by 90 percent compared to six years ago. This means a difference of $3.5 million for the average hospital with 350 beds.
While each individual hospital has its unique challenges, it’s interesting to me that the new “normal” is to receive an average of 3.5 million dollars in hospital denials annually. The systemic payer issues and high cost deductible plans are unquestionably to blame also. It’s important to leverage technology and measure its effectiveness and ROI. If your denials management solution or Business office team can’t produce an accurate ROI or details regarding each denial, it’s time to reevaluate your partner.
If you’re interested in learning more about how our Parathon solution can supplement your efforts, click the ‘schedule a demo’ button or visit our website to learn more about our suite of services dedicated to creating happy and satisfied Hospitals and Patients.