AHA calls out ‘skyrocketing’ administrative costs for hospitals

Becker's Healthcare September 11, 2024
Mariah Taylor

“Skyrocketing” administrative costs and increasingly burdensome insurer policies are driving up care denials, straining hospital resources and delaying patient care, the American Hospital Association reported Sept. 10.

“Hospitals and health systems already face many pressures that make their ability to care for communities more challenging,” the AHA said in the report. “We shouldn’t allow insurers or others to add to that with costly administrative practices that burden already overwhelmed health care professionals and decrease patient access to care.”

Many systems have dedicated staff for prior authorization appeals. Systems conservatively spend an estimated $40 billion annually on costs associated with billing and collections, according to McKinsey findings.

Here are six takeaways:

1. Care denials increased an average of 20.2% for...

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