Becker's Healthcare September 20, 2024
Laura Dyrda

Hospitals’ administrative costs are rapidly increasing as insurers increase prior authorization requirements and denials, according to Rick Pollack, president and CEO of the American Hospital Association.

Mr. Pollack wrote in a post for the AHA website that care denials were up 20.2% for commercial claims and 55.7% for Medicare Advantage claims from 2022 to 2023, which placed a burden on hospital revenue cycles. Strata Decision Technology data shows more than 40% of care delivery costs are now administrative, according to the report.

William Gress, RN, director for revenue cycle operations at Cottage Hospital in Santa Barbara, Calif., has also seen denials increase in the last few years. The change has increased costs to the health system in a variety of...

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