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How to Reduce Claim Denials with a Proactive RCM Strategy

Healthcare revenue cycle team reviewing data to reduce claim denials

Claim denials are one of the most costly and frustrating issues in revenue cycle management. But most denials are avoidable—with the right approach. A proactive RCM (Revenue Cycle Management) strategy can help you identify risk areas before claims are ever submitted.

The True Cost of Denials:
Each denied claim costs your team time, money, and lost productivity. According to MGMA, the average cost to rework a claim is over $25—and that doesn’t include lost revenue from write-offs.

Proactive vs. Reactive:
Instead of reacting to denied claims after they occur, smart RCM teams take proactive steps to prevent them altogether. This includes:

  • Verifying eligibility and authorization before care

  • Ensuring accurate charge capture and coding

  • Using denial trends to flag risky payers or services

Tips to Reduce Denials:
✅ Train front-end staff on proper patient intake and insurance capture
✅ Automate eligibility and authorization checks wherever possible
✅ Build payer-specific workflows to reduce errors
✅ Track denial reasons and take action quickly

The Bottom Line:
A proactive denial prevention strategy leads to faster payments, fewer reworks, and improved cash flow. Start small by tracking your top 5 denial reasons and implementing one fix per month.

If you need help contact us at support@RCMstreamline.com

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