Why the Shift from Technical to Clinical Denials Matters
Chris Spady explains how the denial landscape at Erlanger Health has shifted dramatically over the past decade, from roughly 85 percent technical denials to more than 50 percent clinical denials, fundamentally changing what it takes to win. Clinical denials bring a much longer runway, requiring cross-functional clinical teams and written appeals rather than straightforward revenue cycle corrections, and in many cases the fight is no longer about medical necessity but about care setting, specifically inpatient versus outpatient status.
Key Takeaway
The shift from technical to clinical denials means revenue cycle teams must build cross-functional clinical partnerships to win, because payers are increasingly refusing peer-to-peer reviews and written appeals carry a far lower success rate than peer-to-peer conversations did in the past.
“You have gone from a world where you are winning 70 to 80 percent of those peer-to-peers to where you have to fall back on the written appeal, which has a much lower win rate.”
Chris Spady, Senior Vice President of Revenue Cycle, Erlanger Health
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