{"id":125828,"date":"2021-10-19T16:00:05","date_gmt":"2021-10-19T21:00:05","guid":{"rendered":"https:\/\/www.billingparadise.com\/blog\/?p=125828"},"modified":"2026-02-24T07:20:58","modified_gmt":"2026-02-24T12:20:58","slug":"how-do-authorization-denials-drive-costs-in-healthcare","status":"publish","type":"post","link":"https:\/\/www.billingparadise.com\/blog\/how-do-authorization-denials-drive-costs-in-healthcare\/","title":{"rendered":"Healthcare costs increase by authorization denials – Here’s why?"},"content":{"rendered":"
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Healthcare costs increase by authorization denials<\/strong><\/span><\/h2>\n

A study conducted by Health Affairs revealed that Independent practices<\/a> and Hospitals<\/a> spend an average of $68,274 per year for contacting health insurance. In many cases, Prior authorization appeals are a time-consuming process. Few Insurance companies have options for retro authorization When the patient is in need of medication\/Treatment and prior auth is delayed or not obtained on time, it might become a real impact on the patients. Many doctors report that Authorization denial is detrimental to patient care and it affects reputation. <\/span><\/p>\n<\/div><\/div>[vc_single_image image=”125830″ img_size=”full” alignment=”center”]<\/div><\/div><\/section>

And the data shows that administrative cost for prior authorization is significantly high compared to other tasks like claim submission and eligibility verification. And also it indicates that 35% of the revenue lost in the process are due to authorization denials. Some of the common reasons for authorization denials\u00a0<\/span><\/p>\n