New Research: Denials Now Greatest Financial Threat to Hospitals

Whats Happening:

A new research report by Knowtion Health and HFMA reveals that nearly half of revenue cycle leaders now view payer denials as the greatest threat to their organization's financial performance. The study, based on a survey of 147 revenue cycle leaders, highlights the growing challenges hospitals face in managing denials and the need for new strategies to address this issue.

Key Moves:

• 48% of leaders say denial volume surpasses all other revenue threats

• 47% report appeals now take more than twice as long as three years ago

• Half of respondents see significant increase in payer requests for information

By The Numbers:

• 48% of leaders view denials as top financial threat

• 47% report appeals take twice as long as 3 years ago

• 38% cite difficulty prioritizing denials based on revenue impact

Key Quotes:

• "Denials are no longer just a back-office issue—they are a front-line threat to financial stability," said Jayson Yardley, Knowtion Health's Chief Executive Officer.

• "This moment calls for courage," Yardley added. "Revenue cycle leaders must be willing to abandon outdated processes and invest in the tools, insights, and partnerships needed to reclaim lost revenue and stay ahead of evolving payer behaviors."

Bottom Line:

The research highlights a critical shift in hospital financial management, with payer denials emerging as the primary threat to financial stability. This trend underscores the urgent need for hospitals to adopt innovative strategies, leverage automation, and invest in partnerships to effectively manage denials and protect their revenue streams in an increasingly challenging healthcare landscape.

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