10 ways to declare independence from claim denials with AI

This week, the United States celebrates its independence. Inside most physician practices, a quieter form of dependence runs in the background: the manual, repetitive work of chasing claims that payers keep sending back. More than 41% of providers now report that at least one in 10 of their claims is denied, up from 30% three years ago, and a recent Medical Economics analysis found that most of that lost revenue is recoverable when practices fix the front end.

The drain compounds because so little of it ever comes back. Industry data show up to 65% of denied claims are never reworked, and each denial that does get worked costs a practice an average of $57.23 in staff time, money spent collecting revenue the practice already earned. Most of those denials trace upstream: 60% to 70% originate before a claim is ever submitted, in eligibility checks, prior authorizations and patient data entry.

Here is the part most vendors skip: Technology alone does not fix it. Only about 14% of practices have deployed artificial intelligence (AI) to reduce denials, even though most that have used it report fewer rejections and more successful appeals. The opportunity is real, but it rewards practices that aim the tools at the right problems rather than buying the flashiest platform. Here are 10 places to start.