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Reducing Denials and Rejections | FinThrive

Written by FinThrive | Jan 22, 2025

Analytics has become a vital tool in claims management, enabling healthcare organizations to tackle costly denials and rejections head-on. With billions at stake annually, a data-driven approach is no longer optional—it’s essential.

By leveraging analytics, providers can identify problem areas, optimize processes and proactively prevent claims issues before they arise.

Why Denials and Rejections Matter

Claims denials and rejections significantly impact healthcare organizations, delaying reimbursements, increasing administrative costs and straining payer-provider relationships.

  • Rejections happen at the initial submission stage, often due to errors such as incorrect patient information or coding mistakes. These claims never make it to adjudication and must be corrected and resubmitted.
  • Denials occur after claims are accepted for processing but are later refused due to issues like lack of medical necessity or eligibility problems. Denials require additional follow-up, appeals or adjustments to resolve, resulting in higher costs and longer delays.

Reducing these rates improves cash flow, operational efficiency and overall financial health, making it a top priority for healthcare providers.

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The Power of Analytics in Claims Management

Advanced analytics enables healthcare organizations to spot patterns, predict outcomes and drive smarter decisions. By harnessing these insights, providers can proactively address issues and reduce costly denials and rejections through the following ways:

1. Identifying Root Causes

Using analytics, organizations can analyze claim data to uncover the most common reasons for denials and rejections. For example, high rates of coding errors or eligibility issues can be flagged, enabling targeted interventions to address these challenges.

2. Predictive Analytics for Proactive Prevention

Predictive models can analyze historical claims data to forecast which claims are at risk of being rejected or denied. This insight allows organizations to address potential issues before submission, increasing the likelihood of successful reimbursements.

3. Real-Time Monitoring

With real-time analytics, organizations can track claims as they move through the lifecycle. Alerts for potential errors or inconsistencies enable timely corrections, reducing the likelihood of denials and rejections.

4. Improving Payer Relationships

Analytics can highlight payer-specific trends in denials and rejections, helping providers better understand each payer’s requirements and adjust submissions accordingly.

5. Driving Continuous Improvement

By regularly reviewing denial and rejection data, organizations can identify areas for improvement and implement training or process enhancements to reduce future errors.

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How FinThrive’s Claims Manager Leverages Analytics

FinThrive’s Claims Manager takes this a step further, delivering the analytical tools and actionable insights that empower organizations to achieve smoother workflows and improved results.

Root Cause Analysis
The platform identifies trends in denials and rejections, enabling users to address systemic issues and prevent recurring problems.

Predictive Insights
FinThrive’s advanced analytics predict which claims are at risk, allowing organizations to take corrective action before submission.

Customizable Dashboards
With user-friendly dashboards, Claims Manager provides real-time visibility into claims performance, helping providers track key metrics and respond to issues as they arise.

Payer-Specific Analytics
Gain insights into payer behavior and adjust strategies to improve compliance and maximize reimbursements.

Actionable Recommendations
The platform provides actionable recommendations based on data analysis, guiding users toward process improvements that reduce errors and improve outcomes.

Why Analytics Is a Game Changer

Organizations that harness analytics can significantly reduce denials and rejections, paving the way for faster reimbursements and lower administrative costs. By transforming raw data into actionable insights, healthcare providers shift from reactive to proactive claims management, enhancing efficiency and financial outcomes.

FinThrive’s Claims Manager empowers organizations with the tools and insights to ensure claims are accurate, compliant and processed seamlessly—keeping operations ahead of the curve and revenue cycles healthy.