Prior Authorization and Its Impact on Practice Collection

  • admin
  • March 12, 2024
  • No Comments

Prior Authorization and Its Impact on Practice Collection


How ProMantra Can Be Your Guide to Streamlined Practice Collection

Prior authorization – a seemingly simple term that sends shivers down the spine of many healthcare providers. This bureaucratic hurdle stands between a physician’s recommended treatment and a patient receiving the care they need. While intended to control healthcare costs, the complexities of Prior-auth can significantly impact a practice’s collection efforts. This comprehensive guide dives deep into the world of prior authorization, exploring its impact on practice collection and offering solutions to navigate this labyrinth.


The Maze of Prior Authorization

The Prior authorization process requires healthcare providers to obtain approval from a patient’s insurance company before delivering specific services or medications. This approval hinges on whether the insurer deems the service medically necessary, cost-effective, and aligns with their coverage guidelines. The process often involves submitting detailed documentation justifying the treatment, leading to delays in care and administrative headaches for practices.


The Price of Prior Authorization on Practice Collection

The impact of Prior authorization on practice collection is undeniable. Here’s a closer look at the challenges it presents:

  • Delayed Reimbursement: Obtaining prior authorization can significantly delay claim processing and reimbursement. Studies by the American Medical Association (AMA) show that 91% of physicians experience delays in care due to Prior Authorization, directly impacting cash flow.

  • Denial of Claims: Even with proper documentation, Prior Authorization denials are not uncommon. The burden of appealing denials adds further time and resources, further straining collection efforts.

  • Increased Administrative Burden: The time and manpower dedicated to completing Prior authorization requests translates to less time spent on patient care and revenue generation. A MGMA stat poll revealed 94% of physicians believe Prior Authorization creates a significant administrative burden.

  • Patient Abandonment: The delays and frustrations associated with Prior authorization can lead patients to abandon their treatment altogether. This can happen if they have to wait too long for approval or if they face financial burdens due to the authorization process. 

  • Strained Patient-Provider Relationship: The back-and-forth communication and potential denials related to Prior-auth can create tension between patients and providers. Patients may feel frustrated that their physician can’t provide the recommended care immediately, while providers may feel pressure to justify treatment decisions to insurers.

  • Limited Treatment Options: Physicians may be hesitant to recommend Specific treatments or medications due to the complexity of the Pre-approval process. This can limit treatment options for patients and potentially delay their recovery.

  • Increased Risk of Errors: The pressure to submit complete and accurate Prior Authorization requests can lead to errors in documentation or coding. These errors can further delay approvals or lead to denials, adding to the administrative burden.

  • Impact on Innovation: The time and resources dedicated to navigating Pre-auth can detract from a practice’s ability to adopt new technologies or treatments. This can hinder advancements in patient care.

  • Negative Impact on Practice Morale: The constant struggle with Prior authorization can lead to burnout and frustration among practice staff. This can negatively impact morale and overall productivity.
  • Inefficient Use of Healthcare Resources: The time and resources spent on Prior Authorization by both providers and insurers could be better utilized on direct patient care and preventive measures.


Statistical Snapshot of the Prior Authorization Landscape

  • 75% of physicians report that Prior Authorization issues lead patients to abandon treatment altogether 

  • 40 prior authorization requests per physician per week is the national average 

  • 16 hours per week is spent processing Prior Authorization requests by practices

  • $28,000 per physician per year is the estimated cost of Prior authorization burden on practices 


Why ProMantra is Your Best Choice for Outsourced Prior Authorization Services and Improved Collection Rates

Prior authorization can be a labyrinth for healthcare practices, leading to delayed reimbursements, increased denials, and a significant administrative burden. This translates to a negative impact on your bottom line. Here’s why outsourcing your Prior authorization services to ProMantra is the key to maximizing your collection rates:

Expertise and Efficiency:

    1. Deep Industry Knowledge: ProMantra’s team boasts extensive experience navigating the complexities of Prior Authorization across various insurance carriers. We stay updated on ever-changing regulations and payer requirements, ensuring your requests are submitted accurately and efficiently.

    2. Dedicated Prior Authorization Team: Our Prior Authorization specialists is solely focused on Pre-approval tasks, allowing them to develop a streamlined workflow and minimize turnaround times.

  • Technology-Driven Approach: We leverage advanced technology to automate tasks and optimize the Prior Authorization process, further enhancing efficiency. 


Maximizing Approvals and Reducing Denials:

  1. Complete and Accurate Documentation: Our team meticulously gathers and verifies all necessary documentation, minimizing the risk of errors that often lead to denials. (

  2. Clear and Concise Communication: ProMantra ensures clear communication with insurance companies, effectively presenting the rationale behind your treatment recommendations.

  3. Proactive Denial Management: In the event of denials, our team handles the entire appeals process, saving you valuable time and resources.

Streamlining Your Workflow and Boosting Revenue:

  1. Reduced Administrative Burden: By outsourcing Prior Authorization, you free up your staff to focus on patient care and core practice functions. 

  2. Improved Cash Flow: Faster approvals and reduced denials lead to faster reimbursements and a healthier cash flow for your practice.

  3. Increased Patient Satisfaction: Reduced wait times and timely access to care enhance patient satisfaction and loyalty.

Additional Advantages of Partnering with ProMantra:

  1. Scalability and Flexibility: Our services adapt to your practice’s needs, whether you have a small team or a large medical facility.

  2. Real-Time Reporting and Transparency: We offer comprehensive reports and transparent communication, allowing you to track your Prior Authorization progress and identify areas for improvement.

  3. Enhanced Data Security: ProMantra prioritizes data security and employs robust measures to safeguard sensitive patient information. (

  4. Integration with Existing Systems: We seamlessly integrate with your existing EHR and billing systems, minimizing disruption to your workflow.

  5. Cost-Effectiveness: Outsourcing Prior Authorization to ProMantra can be more cost-effective than hiring and training dedicated in-house staff.

  6. Focus on What Matters Most: By letting ProMantra handle Prior Authorization, you can dedicate your time and expertise to what matters most – providing exceptional patient care.

ProMantra: Your One-Stop Shop for Streamlined Practice Success

ProMantra offers a comprehensive suite of services beyond Prior Authorization, designed to empower your practice and improve your overall revenue cycle management. Explore our additional solutions, including:

  • Medical Billing and Coding: Our team ensures accurate and timely billing to maximize your reimbursements.

  • Practice Management: We offer tools and support to streamline operations and improve efficiency.

  • Revenue Cycle Management (RCM): ProMantra provides a complete RCM solution to manage your entire revenue cycle.


Partner with ProMantra and experience the transformative power of outsourced Prior Authorization services. Let us navigate the complexities of prior authorization while you focus on delivering quality care to your patients. Contact us today for a free consultation and discover how ProMantra can help you achieve optimal collection rates and practice success!


While prior authorization remains a reality, there are ways to navigate it effectively and minimize its impact on practice collection. Here’s how ProMantra can be your guide:


  • Dedicated Prior Authorization Team: ProMantra offers a team of experienced professionals well-versed in the intricacies of Prior auth requirements across various insurance carriers.

  • Streamlined Workflow: Our team works seamlessly with your practice to gather necessary documentation and submit explicit, concise Prior Authorization requests, reducing the likelihood of denials.

  • Real-Time Tracking and Follow-up: We monitor pre-authorization requests constantly and proactively follow up with insurance companies, ensuring timely approvals and minimizing delays.

  • Appeals Management: In the event of denials, ProMantra’s team handles the entire appeals process, freeing up your valuable time and resources.

  • Appeals Management: In the event of denials, ProMantra’s team handles the entire appeals process, freeing up your valuable time and resources.

  • Integration with Billing and Coding Services: ProMantra offers a one-stop shop for managing your entire revenue cycle by integrating Prior Authorization services with our comprehensive billing and coding solutions.


Prior authorization, while posing challenges, needn’t be a roadblock to successful practice collection. By leveraging ProMantra’s expertise and comprehensive solutions, you can navigate this complex system with confidence, ensuring timely reimbursements and a healthy bottom line. Let ProMantra be your guide as you navigate the labyrinth of prior authorization and prioritize what matters most – delivering quality patient care.


Leave a Reply

Your email address will not be published. Required fields are marked *