What is a best practice when managing claim denials?

Creating a log of all denials received is a best practice when managing claim denials because it allows healthcare organizations to systematically track and analyze the reasons for denials. This log can help identify patterns or recurring issues, making it easier to root out problems that lead to denials. By having detailed records of each denial, including the date, reason, and any follow-up actions taken, organizations can improve their processes over time, address the underlying issues, and potentially reduce the rate of future denials.

Additionally, a well-maintained log is valuable for reporting and communicating with both internal teams and external partners, such as payers. It can be a key component of quality assurance and performance improvement initiatives. Without such a log, organizations may lack critical insights needed to refine their claim submission processes or to ensure compliance with payer requirements. Thus, this practice is essential for optimizing revenue cycle management and maintaining financial health in a healthcare setting.