ICD10monitor September 8, 2025
Angela Comfort, DBA, MBA, RHIA, CDIP, CCS, CCS-P

Denials have long been a pain point in healthcare revenue cycles, but in 2025 they have reached new levels of financial and operational impact. Recent studies show denial rates averaging 11.8 percent of all claims, with some providers reporting as high as 20 percent of claims initially denied.

Commercial payers in particular have grown more aggressive with their algorithms and audit triggers, which now extend beyond technical errors to clinical validation and medical necessity challenges. The financial impact is staggering, with billions of dollars tied up in appeals, write-offs, and delayed payments.

The Cost of Reactive Appeals

Historically, organizations relied heavily on appealing denials after the fact. But the costs are staggering. In 2022, the healthcare industry spent nearly $19.7...

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