Home » Blog » The $262 Billion Problem: Tackling Medical Claims Denials

$262 billion. That’s how much medical claims denials cost healthcare providers each year. It’s a staggering figure that highlights a major pain point in the healthcare industry. But it’s not just the direct cost that’s concerning; it’s the ripple effect these denials have on your entire revenue cycle.
- A Massive Problem:Â Out of a total of $3 trillion in healthcare claims, a whopping $262 billion are denied. That’s nearly 1 in every 10 claims!
- Time Drain:Â Addressing these denials is time-consuming, and unfortunately, as many as 65% of denied claims are never resubmitted due to the administrative burden.
- Financial Strain:Â Denied claims significantly impact an organization’s financial viability. Ineffective accounts receivable (AR) management is the #1 reason for healthcare organization closures.
- Lost Revenue:Â Outdated denial processing and high transaction volumes mean you’re likely leaving significant revenue on the table. A shocking 63% of denials are recoverable, yet most are never reworked.
This week, I’m launching a new series on medical claims denials, exploring the causes, impacts, and solutions to this costly problem.
At Valenta we can help. Our AI-driven approach helps you efficiently manage, appeal, and prioritize medical billing denials, ensuring that less revenue slips through the cracks.
Stay tuned for more insights and strategies to tackle denials head-on!