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Denial Management Solutions

Preventive Denial Management Solutions: 5 Techniques for Medical Professionals


The process of avoiding, looking into, evaluating, and settling refused insurance claims is known as Denial management solutions. Every year, doctors lose a lot of money as a result of medical claims being rejected that could have been avoided with effective Denial management solutions procedures. For instance, the average cost to redo a claim varies from $25 to $117, per “The Change Healthcare Revenue Cycle Denials Index.” If your company chooses to appeal 100 decisions a month, it will cost between $2,500 and $11,700. Healthcare providers can concentrate on providing high-quality patient care while guaranteeing prompt and correct payment from payers by taking proactive measures to manage denials.

The procedure for managing denials

If done properly, the Denial management solutions process can yield significant money. To effectively manage denials, the following actions are necessary:

Step 1: Investigate denials from every angle

Examining the locations of denials is the first step provider groups and management services companies should do. It is imperative that you obtain a comprehensive understanding of the most common refusal kinds and the payers who are most likely to refuse specific operations. Compiling information on the facilities, providers, payers, and procedures that lead to the most frequent denials reveals not only the areas where you are making mistakes, but also potential payer fault spots. Identifying the underlying issues encourages employees to fix them.

Step 2: Examine the causes of denials

Code errors, missing data, late submissions, out-of-network care, lack of prior authorization, and lack of medical necessity are the reasons given by the provider for these claim denials. Strong denial-of-service software addresses each of these points.

You can devise tactics to stop similar denials by determining the causes. With the help of Denial management solutions software, you may identify the problems causing your rejections and modify your workflow procedures to stop them.

Step 3: Classify refusals

Categorizing rejections to create focused strategies for stopping similar denials in the future is the next phase in the denial management healthcare process. Denials can be classified according to particular causes, like:

Previous Authorization:

Without it, a claim can be rejected if the services being provided or prescribed call for previous authorization.
Coding errors and missing information: An error in coding or missing information may lead to a denial.

Delays in submitting claims:

Payers are subject to deadlines for filing claims. This deadline must be met or the claim may be rejected.


A claim may be denied if it is filed for a service for which insurance is not applicable or if the payer finds that there is not sufficient medical necessity.

The following sorts of claim denials should also be taken into account:

Soft denials:

A brief refusal that doesn’t need to be appealed and could be reimbursed if your healthcare provider fixes the problem

Hard denial:

A refusal that necessitates an appeal and costs money
A hard denial that could have been prevented, such as a code error or insurance ineligibility.

Clinical denial:

A severe rejection in which the denial of a claim is based on the absence of medical necessity.

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Administrative denial:

A mild rejection in which the payer explains to your company the specific reasons the claim was turned down.
You must designate departments or teams to handle corrective measures after classifying the denials.

Step 4: Marshal evidence of facts, records, and appeal

Once the denial’s causes have been determined and categorized, you can fix any mistakes or deal with the problems that initially led to the denial before resubmitting the claim for payment. This phase is essential to boosting revenue rather than losing money that may be legally owed to your organization because so many denials are reversed.

It is possible to win an appeal. According to the Change research referenced above, although 67 percent of denials are recoverable, 65 percent of claims are never resubmitted. It is obvious that healthcare companies lack the personnel and infrastructure necessary to properly handle denials. Only payers gain when providers are overworked.

Step 5: Monitor outcomes

In order to track the status of resubmitted claims, a tracking mechanism must be developed as the fourth stage in the rejection management process. Payers are unable to reject claims because they missed a deadline when you monitor and adhere to timetables. In the event that they begin to put off your appeal, you might warn them that they will incur fines if they miss a deadline.

Step 6: Construct a safeguard system

Create a list of the most common reasons for denials after gaining a thorough understanding of the mistakes made by administrators and clinicians that lead to denials as well as payment problems. Together with your team, put procedures in place to stop these typical denials from happening.

Evaluating Prospective Claims Prior to Filing

Using revenue cycle management software with a predictive analytics tool has helped some revenue cycle managers reduce their denials rate. Preventing a denial should be the first step, as it can cost your company anything from $25 to $117 to appeal a claim.

The claims that are most likely to be denied are identified via predictive functionality. In the end, it helps healthcare organizations’ bottom lines. Before a claim is submitted, these technologies use data analytics, machine learning algorithms, and historical data to identify patterns and trends that will help them appropriately estimate the chance of a denial.

Based on the high-risk claims that have been recognized, you can develop a workflow that incorporates all the elements that have previously resulted in the approval of claims that are similar.

Denial Management Solutions

The best methods and techniques for handling denials

Teams must play a major role in efficient denial management healthcare due to the intricacy of healthcare reimbursement and coding standards. Software is becoming more and more popular among teams.

Software for denial of service

A lack of people and knowledge in the healthcare industry has forced many physician groups and management services firms to turn to software in order to handle appeals and denials.
At DOCS Dermatology, Valerie DeCaro serves as the vice president for revenue cycle management. Over 150 providers are housed in dozens of locations, and DOCS makes a lot of effort to streamline and standardize their revenue cycle. DeCaro bemoans how slowly the healthcare industry has embraced technology. Today, one of the main issues facing management services companies such as her is:

“the healthcare industry’s slow adoption of automation and technology. We still often utilize fax machines, and we have numerous antiquated workflows. Certain practices continue to use paper-based systems. Compared to other industries, we’re not even close. Before you even arrive at the airport, you may use your phone to check in, pay for your bag, and print your tag at an airline.
Organizations now rely more on technology to execute essential RCM administrative duties due to the rapid changes in the healthcare business and a crippling personnel shortage.

All of the leaders in the healthcare industry are pushing providers to use technology.

Healthcare executives from the esteemed healthcare consulting firm discuss the uncertain future of US healthcare in “The gathering storm.”

According to McKinsey,

“The healthcare sector is expected to experience a nearly $600 billion increase in costs by 2027. There is, however, a way out of the storm: the enormous $1 trillion opportunity to enhance healthcare and create value through technology application, clinical productivity gains, care delivery transformation, and administrative process simplification. Furthermore, this degree of possibility is predicated on advances that CEOs can access and utilize right now. Companies that want to prosper in the upcoming years will need to accelerate these breakthroughs even more swiftly than they do now.
Overcoming reluctance, resilient providers are making investments in revenue cycle technologies. In fact, from 2023 to 2030, the industry is expected to increase at a compound annual growth rate of 10.3%.

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Healthcare executives should relax knowing that third-party solution partners have worked hard to guarantee flawless integration with your current EMR, billing, and other systems, despite worries about capacity, time, and money. Partners strive to make the experience as “touchless” as possible for healthcare leaders, acknowledging the limited resources and time of healthcare organizations. Your current systems handle data interchangeably, and the partner provides thorough onboarding and step-by-step support.

Furthermore, studies show that employees quickly accept the automation that new technology brings, despite their initial resistance. After completing full onboarding, 92% of senior executives who used automation technologies reported higher employee satisfaction, according to the Forbes “2019 Kofax Intelligent Automation Benchmark Study”.

Perform evaluations of performance

AHIMA suggests that denials and appeals rates can be raised by regularly conducting audits on topics like remittance advice reviews, zero payment claims, registration, and insurance verification quality.

Work together

You shouldn’t try to manage denials as a one-person operation. Putting together a multidisciplinary team with important personnel from several departments, including nursing, patient financial services, registration, health information management, and information technology, will enable you to monitor progress, implement changes, and remove process bottlenecks in order to find the source of these denials. Working together with payers to settle denied claims can also guarantee a more effective procedure.

Staff training is another essential collaborative effort. It will be ensured if staff members receive ongoing training on best practices.

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Pay attention to trends and statistics

In today’s healthcare environment, knowing what “normal” is might help you stay on course. As previously indicated, denial rates have risen by thirty percent since 2016.

If you divide these figures down into your area of expertise, they become more meaningful. 17,461 American clinicians representing more than 30 disciplines were polled by Medscape. Just ten of the denial averages are listed here:

  • Surgery for plastics: 28%
  • Emergency care: 22%
  • Radiology: 20%
  • In orthopedics, 18%
  • Cancer: sixteen percent
  • 16.% in gastroenterology
  • 15% in dermatology
  • Internal medicine: 15%
  • Family practice: 14%
  • 13 percent in ophthalmology
  • You can determine when you need to strengthen your denials management system by comparing your denials figures to industry averages. Getting support can also be facilitated by demonstrating deviation from industry norms.

Be punctual

Time is of the importance when it comes to denials. It is essential to adhere to the dates that insurance companies specify for filing both initial claims and appeals. Maintain staff focus by using a written process. Additionally, remember that payers have deadlines to meet. They face consequences if they don’t.

The advantages of handling denials in a medical facility

Managing denials in your healthcare company has many advantages. Improved initial clean claims rate, higher net revenue collection, and better patient experience and loyalty are a few of these major benefits.

Increased Rate of Clean Claims

Physician groups and management services companies should aim for a clean claims rate of 98%, according to HFMA. Denied claims increase staff working hours, administrative expenses, and payment delays, as was previously indicated.

Enhanced collection of net revenue

The potential for increased net revenue is another benefit of proactive hospital denial management software. Improved patient loyalty and experience. Handling rejections not only has budgetary advantages but also improves patient satisfaction and loyalty. Rejected claims annoy patients who are desperate for the care they require. Only contented clients provide the word-of-mouth recommendations that are essential to growing your patientele.

Ways to handle denials when your workforce is limited

Managers of healthcare revenue cycles and management service providers would be thrilled to implement all of the aforementioned fixes. But when it’s difficult to even get patients scheduled and admitted, denials take on less importance.

Software for denial of service

Healthcare practitioners can navigate and resolve claim denials from insurance companies and other payers with the help of hospital denial management software. This program detects, monitors, and in certain situations even files an appeal against these claim denials in an effort to enhance revenue cycles and optimize reimbursement. These software programs provide data analytics, process customization, real-time denial tracking, and interface with current EHR systems.

The claims procedure involves the employment of different code systems, which increases the possibility of errors. A single misspelling may be the reason a claim is rejected. When a claim is rejected, Denial management solutions software helps you interpret the denial code and code your claims correctly.

Software for denial of service management proactively avoids a lot of problems, which is really helpful if you are short.

Your team works more efficiently when it uses technology to automate Denial management solutions process duties.

Services for Managing Denials that are Outsourced

Outsourcing Denial management solutions responsibilities to outside suppliers is another Denial management solutions method that might be useful if you don’t have enough staff members. This is a common approach taken by healthcare companies because, in the absence of an internal team, you may leverage the resources and knowledge of the outsourced party to promptly detect and resolve problems.

Bridge TruBridge

Outsourced Denial management solutions services are among the many services offered by TruBridge, a healthcare revenue cycle management organization. The goal of the company’s Denial management solutions program is to boost reimbursements by locating and removing the reasons behind denials.

First, TruBridge’s Denial management solutions specialists collaborate with you through this outsourced program.

Next, in order to identify the underlying reasons behind your denials, examine your workflows, and put best practices in place to stop denials, TruBridge conducts an on-site audit and remediation of your company.

In order to optimize procedures and guarantee that everything operates as planned, TruBridge also provides continuous monitoring and tracking of your workflows and systems.


Savista is another business that offers Denial management solutions services that are outsourced. Savista is a provider of healthcare services and technology with a focus on revenue cycle management. Simplifying the denial management process for healthcare companies is another goal of the company’s Denial management solutions program, which is an outsourcing option. The Denial management solutions specialists at Savista create internal procedures to prevent denials and pinpoint the underlying reasons of denials using a combination of technological and human skills.

Savista even recovered $20 million for their client, Southwestern Health System, according to their website.

Software solutions for denial of service

A growing number of businesses are concentrating on healthcare rejection management and offering specialized services and solutions intended to assist you handle denials successfully in order to meet the growing concern surrounding claim denials and related issues.

MD Explicitness

MD One of the main reasons for front-end denials is eligibility and registration, which is addressed by Clarity’s RevFind. Studies reveal that 41% of claims denials start at the front end. By ensuring that claims are only filed for qualified patients, RevFind helps to avoid expensive claim denials.

Modify Medical Care

Every year, Change Healthcare releases The Change Healthcare Denial Index, which is referenced throughout this guide. Large hospitals and the healthcare industry are often served by Change Healthcare.

With its insights into rejection patterns, denial causes, and avoidable denials, the rejection Index report is a useful tool for healthcare companies trying to lower their denial rates. In addition, the Denial Index addresses commonly asked issues concerning denials from the healthcare community and offers best practices for proactive denial management. A great deal of value is provided by Change Healthcare for the ongoing improvement of the denial management procedure.

Trellis Vyne

Vyne Trellis is another business that specializes in denial management healthcare. Vyne Trellis focuses exclusively on dental offices, but Change Healthcare offers pertinent insights for a variety of healthcare professionals. The company offers a suite of hospital denial management software tools, including an eligibility tool, to assist dental offices in handling denials more skillfully.

They also provide assistance with claim denials, including status updates and explanations for rejections.

The price of these claim Denial management solutions systems
Depending on the supplier, Denial management solutions systems might have different prices. Vyne Trellis Denial management solutions services, for instance, cost $99 a month for each practice location, or about $1,200 annually, according to Dental Claim Support.

As is customary among software vendors and service providers, TruBridge, Savista, and Change Healthcare have not provided pricing details for their denial management healthcare solutions services. Deny management software is often priced based on the quantity of patient encounters and particular capabilities that are required.

You’ll have to get in touch with each business if you want to know the current cost of such solutions.

Automate the eligibility verification process

Healthcare organizations bear a heavy burden when their claims are denied. You can save a lot of work by using denials management software.

RevFind from MD Clarity is a cutting-edge software program that can automate hospital denial management software cycle procedures. It detects trends in payer underpayments and denials. RevFind is a considerably more efficient method of increasing reimbursement than the prevalent but antiquated manual techniques. Make an appointment for a demo now.

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