6 ways to cut denials at your practice

Claim denials remain one of the most persistent revenue drains for medical practices, but the good news is that most are preventable. Research shows that 85% of denials are avoidable, yet practices continue to lose precious revenue and staff time to what amounts to fixable errors.

Recent data show denial rates climbing. According to analysis by the Medical Group Management Association, 60% of medical group leaders reported an increase in claim denial rates in early 2024 compared with the same period in 2023. The financial impact extends beyond lost revenue: Each appeal costs practices roughly $118 to recover, not counting staff time and delayed cash flow.

But understanding where denials originate is the first step toward prevention. Here are six proven strategies to reduce denials and strengthen your revenue cycle.