The healthcare industry continues to grapple with an increasing number of claim denials, exacerbating financial challenges for providers and complicating revenue cycle management. According to the Experian Health 2024 State of Claims survey, nearly 3 out of 4 healthcare providers report an uptick in claim denials — a 31% increase compared to 2022. Compounding this issue is a concerning decline in the adoption of technologies, such as automation and artificial intelligence, that could mitigate these challenges.
By the Numbers: A Steep Decline in Confidence
Providers’ sentiments reflect growing frustration with the claims process:
- 77% of providers surveyed report more frequent payer policy changes (up from 67% in 2022).
- 67% say reimbursement times are increasing (up from 51%).
- 55% report a rise in claims errors (up from 43%).
These metrics demonstrate that the healthcare industry is moving in the wrong direction, leaving many providers struggling to keep up with the administrative burdens that contribute to financial instability.
The Leading Causes of Claim Denials
The top culprits for claim denials are issues that, in many cases, could be avoided with better data collection and verification:
- Missing or inaccurate data (46%)
- Authorizations (36%)
- Incomplete or inaccurate patient information (30%)
The big picture: Despite the growing need for effective solutions, providers are losing confidence in technology:
- Use of automation/AI dropped from 62% to 31%
- Those not considering automation rose from 5% to 28%
- Only 28% feel confident understanding automation, ML, and AI (down from 68%)
What they’re saying: “This growing crisis is a sign that traditional approaches are no longer enough, and providers should adopt more proactive strategies and the latest technology to navigate this volatility,” said Clarissa Riggins, Chief Product Officer at Experian Health.
The healthcare industry continues to grapple with an increasing number of claim denials, exacerbating financial challenges for providers and complicating revenue cycle management. According to the Experian Health 2024 State of Claims survey, nearly 3 out of 4 healthcare providers report an uptick in claim denials — a 31% increase compared to 2022. Compounding this issue is a concerning decline in the adoption of technologies, such as automation and artificial intelligence, that could mitigate these challenges.
By the Numbers: A Steep Decline in Confidence
Providers’ sentiments reflect growing frustration with the claims process:
- 77% of providers surveyed report more frequent payer policy changes (up from 67% in 2022).
- 67% say reimbursement times are increasing (up from 51%).
- 55% report a rise in claims errors (up from 43%).
These metrics demonstrate that the healthcare industry is moving in the wrong direction, leaving many providers struggling to keep up with the administrative burdens that contribute to financial instability.
The Leading Causes of Claim Denials
The top culprits for claim denials are issues that, in many cases, could be avoided with better data collection and verification:
- Missing or inaccurate data (46%)
- Authorizations (36%)
- Incomplete or inaccurate patient information (30%)
The big picture: Despite the growing need for effective solutions, providers are losing confidence in technology:
- Use of automation/AI dropped from 62% to 31%
- Those not considering automation rose from 5% to 28%
- Only 28% feel confident understanding automation, ML, and AI (down from 68%)
What they’re saying: “This growing crisis is a sign that traditional approaches are no longer enough, and providers should adopt more proactive strategies and the latest technology to navigate this volatility,” said Clarissa Riggins, Chief Product Officer at Experian Health.
