Denied Claims? Here’s How a Proactive Hospital Billing Company Like Finnastra Reduces Them by 60%

Denied claims are more than just a nuisance for hospitals—they represent a direct hit to cash flow, profitability, and operational efficiency. According to the American Hospital Association, hospitals lose an average of 1–3% of net patient revenue annually due to claim denials, with some facilities reporting denial rates as high as 10% of total claims. For a hospital with $200 million in annual revenue, that’s up to $20 million at risk.

This is why denial management has become a top priority for hospital CFOs and revenue cycle leaders. And yet, too many facilities still rely on reactive approaches—fixing denials after they occur—rather than adopting a proactive denial prevention strategy.

At Finnastra, we understand that denial prevention is where true revenue protection lies. As a leading Hospital Billing Company, Finnastra ensures denials are reduced by up to 60% through analytics-driven processes, expert workflows, and continuous payer engagement.

Why Denials Happen—and Why They’re Costly

The most common reasons for hospital claim denials include:

• Incomplete or inaccurate patient data (responsible for nearly 25% of denials).
• Coding and documentation errors (affecting about 30% of hospital claims).
• Authorization and medical necessity issues (one of the fastest-growing denial categories).
• Late claim submissions due to workflow inefficiencies.
• Payer-specific policy changes that aren’t tracked effectively.

According to Change Healthcare, 65% of denied claims are never resubmitted, meaning hospitals leave significant revenue uncollected simply because they lack structured denial follow-up processes.

How Finnastra Reduces Denials by 60%

Our Hospital Billing Services are designed to attack denials at the root. Instead of waiting for payer rejections, we implement front-end safeguards and real-time analytics that prevent errors before claims are sent. Here’s how we do it:

1. Pre-Claim Scrubbing and Eligibility Verification

• Automated verification ensures coverage is accurate before claims are submitted.
• Pre-claim scrubbing catches missing modifiers, incorrect codes, and demographic errors.
• Industry benchmark: Hospitals using eligibility verification see 30% fewer denials.

2. Proactive Authorization Management

• Prior authorizations are tracked and validated to avoid “authorization not on file” denials.
• Our workflows ensure 100% compliance with payer requirements.

3. Advanced Denial Analytics

• Using AI-driven analytics, we identify denial patterns by payer, department, and service line.
• This enables hospitals to implement targeted fixes (e.g., improving documentation for imaging or surgery claims).

4. Expert Coding & Clinical Documentation Support

• Certified coders ensure coding accuracy.
• Our physician education programs help improve documentation quality, cutting down on medical necessity denials.

5. Dedicated Denial Resubmission Team

• Denied claims are reworked within 48 hours.
• Our aggressive appeal strategy ensures hospitals don’t leave recoverable dollars on the table.

Real-World Impact: What Hospitals Gain

When you work with a dedicated Hospital Billing Company like Finnastra, the results are measurable:

• 60% reduction in denials within the first six months.
• 15–20% improvement in net collections.
• 30% faster cash turnaround, improving hospital liquidity.
• Significant reduction in bad debt and write-offs.

For example, one of our partner hospitals was struggling with a 12% denial rate, losing nearly $5 million annually. Within a year of partnering with Finnastra, denial rates dropped to under 5%, and cash flow stabilized—giving the CFO confidence in predictable revenue cycles.

The CFO’s Question: Can You Afford to Keep Losing Revenue?

Every hospital leader must ask:

• Are our denials being tracked by type and payer?
• Do we have proactive workflows preventing denials—or are we always reacting?
• How much revenue are we writing off that could have been recovered?

If the answers expose gaps, it’s time to consider a hospital billing partner that specializes in denial prevention and recovery.

Why Hospitals Choose Finnastra

As a leading Hospital Billing Company, Finnastra ensures hospitals move from a reactive to a proactive revenue cycle model. With denial prevention at the center of our services, hospitals not only reduce losses but also gain predictability, compliance, and sustainable growth.

Our Hospital Billing Services are designed to simplify workflows, minimize errors, and maximize collections—helping CFOs and revenue leaders achieve the financial clarity they need to focus on patient care and expansion.

Ready to reduce denials by 60% and reclaim lost revenue?
Contact Finnastra today to discover how our Hospital Billing Services can transform your denial management strategy.

Learn more: Hospital Billing Services