Days in A/R are climbing, clean claim rate is falling, and millions sit in denied claims pending rework.

The healthcare revenue cycle loses 3 to 5 per cent of net revenue in collection costs. The initial claim denial rate has reached 11.81% in 2024, and 65% of denials are never reworked. Billing teams operate with chronic vacancies: the shortage of coders and billing specialists forces permanent overtime. Manual eligibility verification, coding errors, and late reconciliation create a rework cycle that consumes resources without generating revenue.

Experian Healthcare 2024, McKinsey