On average, mid-sized practices lose $200,000 or more annually. This loss isn’t because of lack of patients—it’s due to inefficiencies in billing, claim follow-ups, and poor revenue cycle management.

About 15% of claims are denied on the first submission. If a billing team fails to appeal or resubmit them properly, the practice loses money permanently. Denials left unaddressed can easily cost tens of thousands each year.

Insurance companies often pay less than the contracted amount. If practices don’t conduct regular audits, these small underpayments accumulate silently, leading to large yearly losses that remain unnoticed.

Even minor coding mistakes—such as missing modifiers or incorrect procedure codes—can trigger denials or reduced payments. When repeated across hundreds of claims, these errors drain significant revenue and may even expose the practice to compliance penalties.

With rising deductibles, patients are responsible for a larger share of bills. However, many practices only collect 60–70% of patient balances, leaving substantial income unclaimed. Proper patient billing systems and follow-ups can significantly improve this.

The best way is to perform regular audits, automate claim submissions and follow-ups, train staff to minimize errors, and work with a billing partner who specializes in healthcare revenue recovery. Companies like Revenue Care MD focus specifically on plugging these leaks and maximizing collections.