Which of the following is a consequence of claim denials?

Prepare for the HFMA Executive of Healthcare Revenue Cycle Exam. Use flashcards and multiple choice questions, with each question offering hints and explanations. Ace your exam!

When claims are denied, one of the primary consequences is the increased administrative costs associated with the appeals process. This includes the time and resources spent on reviewing denied claims, resubmitting paperwork, and communicating with payers to rectify the issues that led to the denial. The appeals process can be labor-intensive and requires a dedicated staff to manage, thus resulting in higher operational expenses.

In contrast, increased patient satisfaction, higher revenue realization, and decreased workload for billing staff are typically not outcomes of claim denials. Often, denials lead to frustration for patients who may not understand why their claims were rejected, potentially reducing their satisfaction. Additionally, the revenue realization is negatively affected because when claims are denied, the facility or provider does not get paid, which can ultimately lead to losses rather than gains. Moreover, denials typically result in an increased workload for billing staff as they must spend additional time resolving the denied claims rather than just processing new ones.

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