Home Business 10 Best Strategies For Reducing Denied Claims And Increasing Reimbursement Rates In Healthcare Industry

10 Best Strategies For Reducing Denied Claims And Increasing Reimbursement Rates In Healthcare Industry

by Hana Riley

Managing the claims process in healthcare can be arduous, with denied claims and low reimbursement rates causing financial strain on medical practices.

According to a study by the American Medical Association, denied claims can cost healthcare providers up to 8% of their revenue. Therefore, reducing denied claims and increasing reimbursement rates is essential for the financial health of any healthcare organization.

To help ease this burden, we’ve compiled the ten best strategies for reducing denied claims and improving their revenue cycle management.

This blog post will discuss each strategy in detail, along with tips and tricks to implement them effectively. With these strategies, medical practices can better manage their claims process and improve their financial health.

1. Use Technology

Technology is a valuable tool in reducing denied claims and increasing reimbursement rates. Automating the billing process with a cloud-based practice management system can streamline data entry and help identify improvement areas.

Additionally, you can use analytics to track denied claims and pinpoint trends to identify potential issues.

Predictive analytics can help you proactively make changes to reduce denied claims and improve your financial performance.

According to a study by the American Medical Association, using EHRs can reduce denied claims by up to 50%.

The study found that EHRs can improve patient information accuracy, reduce coding and billing errors, and streamline the claims submission process. This ultimately leads to a higher rate of accepted claims and more efficient revenue cycle management.

You can quickly and accurately analyze billing issues, adjust processes accordingly, and increase revenue by accessing real-time data. Technology can also assist you in staying compliant with changing regulations and payment policies, thus reducing the risk of denied claims. Investing in technology is a great way to improve operational efficiencies and get the most out of your reimbursement rates.

2. Review Your Processes


One of the best ways to reduce denied claims and increase reimbursement rates is to review your processes regularly. Start by closely examining how you code and submit claims, then identify any areas that may be causing problems.

You should also look for any redundancies or unnecessary steps in your process that may be contributing to rejections. Can any steps be automated to make things faster and more accurate? Are there any changes you can make to streamline the process?

Finally, ensure that everyone involved in the claims process understands their roles and responsibilities, including all of your providers, staff, and external partners.

In addition, regular training and educating your team will ensure that your processes are accurate and up-to-date.

With these steps, you can ensure that your claims are being processed correctly and that you get the maximum reimbursement possible.

3. Educate Your Staff


Ensuring that your staff understands the importance of correctly coding and documenting each claim can be instrumental in reducing denials and improving reimbursement.

Take the time to train your staff on the latest coding protocols, industry standards, and processes for submitting claims accurately and promptly. Additionally, provide regular refresher training to ensure everyone is up-to-date on changes or updates.

Investing in your staff and providing proper training and education can help reduce denied claims and improve reimbursement rates.

Consider having a designated person responsible for staying up-to-date on payer regulations and policies and periodically evaluating your current process for submitting claims.

Additionally, implementing tools such as audits, checklists, and reports can help to identify areas where improvements can be made. Implementing an effective appeal process is also critical for reducing denied claims, as this allows for quick resolution and follow-up with payers.

Finally, take the time to review payment trends regularly and assess if current payment patterns indicate errors or other issues that need to be addressed. With these strategies in place, you will be well-equipped to reduce denied claims and improve reimbursement rates.

4. Appeal Denials

Appealing denied claims can help your practice increase its reimbursement rate and get the money you deserve.

When you decide to appeal a claim, it’s essential to have a clear strategy in mind. First, double-check the claim and ensure there aren’t any obvious errors that need to be corrected.

It’s also essential to look for supporting evidence, such as medical records or documents, to demonstrate why the claim should be approved.

Once you’ve gathered the necessary information, you’ll need to contact the payer and explain why the claim should be approved.

You should also follow up with additional calls or emails if needed. It’s important to stay persistent and provide any other evidence that the payer requests.

By appealing denied claims, you can increase your reimbursement rate and recover payments that may have otherwise been lost. Remember to stay organized and document every process step for future reference.

5. Modify Your Coding

errors are one of the leading causes of denied claims and significant contributors to decreased reimbursement rates. Proper coding requires an accurate understanding of coding guidelines and regulations and knowledge of payer-specific requirements.

We recommend you use the most current version of the CPT and ICD-10 codes to improve your coding accuracy. Utilize online coding resources such as AHA Coding Clinic, AAPC, and other professional coding organizations to help you stay up to date with coding changes. When needed, seek guidance from experienced coders or specialists.

Also, keep in mind that modifiers can be used to help clarify services.

In addition to using the correct codes, you should also consider your documentation. Make sure all the required information is present in the patient’s chart.

When there are discrepancies, ask for clarification and ensure that all information is accurately reflected in the patient’s chart.

If necessary, update your medical record system to ensure all the required information is captured correctly and included in the patient’s record.

By staying on top of coding and documentation updates and utilizing online coding resources, you can reduce the chances of denied claims and increase your reimbursement rates.

6. Double-check Your Documentation

The quality and accuracy of your documentation are essential for successful reimbursement. Poorly written documents can cause denied claims or lower reimbursement rates. To prevent this, it is important to ensure that your documentation is always accurate and complete.

According to a Healthcare Financial Management Association study, up to 25% of denied claims are due to errors or missing information in the documentation. The study found that the most common mistakes included incorrect patient information, missing diagnosis codes, and incorrect billing codes.

By double-checking and verifying all documentation, healthcare organizations can ensure that patient information is accurate, diagnosis codes are complete and correct, and billing codes are accurate and compliant with regulations.

We recommend you check all the information on the claim form, such as patient information, diagnosis codes, dates, services provided, fees, etc. Make sure that all the details are correct and up to date. It’s also important to double-check any information you’ve already entered. This will help you catch errors and avoid costly mistakes.

You should also be aware of coding rules and regulations. Your staff should stay updated with the latest coding requirements to ensure that all codes are used correctly.

In addition, you should also ensure that all the necessary documentation is included in the claim form. This includes clinical notes, medical records, laboratory results, etc.

Double-checking your documentation can reduce the number of denied claims and increase your reimbursement rates. This can help you get paid faster and maximize your profits.

7. Negotiate With Payers

This strategy involves working with insurers to develop an agreement that benefits both parties.

Negotiating with payers can ensure that your practice receives fair reimbursement for your services.

When negotiating, it’s essential to make sure that you clearly explain why you believe your services are worth the amount that you are requesting and what services your practice will be able to provide in exchange.

It’s also essential to research different payers’ payment policies before starting negotiations. This will allow you to craft a proposal that meets their needs and aligns with their policies.

Additionally, discuss non-financial considerations such as customer service or quality assurance agreements.

Negotiating with payers can be intimidating, but if done correctly, it can help to reduce denied claims and increase reimbursement rates for your practice.

8. Use Data

Data can help providers analyze trends, identify potential problems, and make better decisions. Through data analysis, providers can track reimbursement trends, such as claims payment rates, claim denial reasons, and other trends. With this information, providers can determine the root cause of their denials and take corrective action.

Data can also be used to compare different payers’ reimbursement rates, allowing providers to make informed decisions about who to accept payments.

Additionally, data can help providers understand the overall financial picture of their practice, providing insight into how much money they are losing due to denied claims.

Finally, data can also be used to develop evidence-based policies and procedures that are tailored to each provider’s needs. By creating targeted policies and procedures based on data-driven insights, providers can reduce their denied claims and maximize their reimbursement rates.

9. Join Forces With Other Providers

This strategy involves forming a network of medical providers who agree to share resources and collaborate on patient care.

By joining forces with other healthcare professionals, you can maximize your opportunities to receive higher reimbursements.

In addition, partnering with other providers can give you access to a larger patient population and more knowledge and expertise in a particular specialty or field.

This is especially beneficial if you specialize in a specific type of medicine. In other words, leveraging the collective expertise of all the providers in your network will provide better care for your patients and increase your chances of receiving higher reimbursements.

Finally, working with other providers gives you access to better data, which can be used to inform decisions about billing, coding, and patient care.

Having access to data from other providers in the network can help you better understand the current market trends and stay ahead of industry changes that may impact reimbursements.

By joining forces with other providers, you can access more resources, increase your reimbursement rate, and provide better patient care. It’s a win-win for everyone involved!

10. Be Persistent

Persistence is vital in reducing denied claims and increasing reimbursement rates. You must stay on top of the ever-changing healthcare landscape and stay informed on current policies, regulations, and guidelines. Develop a system for tracking changes so that your staff can keep up with all the latest updates.

Also, don’t be afraid to reach out to payers and ask questions if you are unsure about something. Remember that the best way to get the most out of your reimbursements is to be persistent in pursuing them.

Don’t give up when you face challenges. Instead, find creative solutions and work collaboratively with payers to achieve the best outcome. With persistence and the right strategies, you can reduce your denied claims and increase your reimbursement rates.


In conclusion, reducing denied claims and increasing reimbursement rates is crucial for any healthcare organization.

The strategies discussed in this article, such as implementing a systematic coding and billing process, regularly reviewing and updating payer contracts, and utilizing technology to improve compliance and streamline operations, can effectively achieve this goal.

Additionally, actively monitoring and analyzing denied claims, providing staff education and training, and maintaining strong relationships with payers are also essential.

By implementing these strategies, healthcare organizations can improve their financial stability and better serve their patients. Thanks for reading.

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