Patient Collection Rates Declined in 2024

March 12, 2025 4:37 pm
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The collection rate from commercially insured patients dropped 3 percentage points between 2023 and 2024, according to recent findings.

A recent study from Kodiak Solutions revealed the collection rate for providers from commercially insured patients dropped by more than 3 percentage points, from 37.6% in 2023 to 34.4% in 2024. The decline is creating substantial revenue cycle management challenges.

Kodiak researchers attribute the decline to patients assuming greater financial responsibility through high-deductible health plans and other cost-sharing arrangements. While providers have attempted to offset these losses by improving point-of-service collections and bad debt recovery, they simultaneously face increasing resistance from insurance companies.

Initial claim denial rates climbed to 11.8% in 2024, marking the fourth consecutive year of increases. Commercial health plans and Medicare Advantage plans were the primary drivers of this trend, with both showing increased rates of initial request for information denials. Final claim denials held steady at 2.8%, though this rate remains 16.7% higher than in 2020.

What’s Next?

To combat these challenges, health care providers are implementing innovative strategies.

“While our data suggest that these headwinds continue to gather strength, I am encouraged by the conversations that my colleagues and I are having with revenue cycle leaders across the country,”  Matt Szaflarski, vice president of Revenue Cycle Intelligence for Kodiak, said in a statement. “These leaders are using revenue cycle data to pinpoint problem areas and then developing creative solutions that will drive their revenue cycle performance in 2025.”

A few of the initiatives Kodiak researchers suggested include:

  • Enhanced patient education about health plan benefits and financial responsibilities
  • Implementation of digital payment solutions and online billing systems
  • Integration of clinical departments with revenue cycle operations
  • Stronger payer contract language to reduce pre-payment denials

Health care organizations are focused on improving the patient financial experience through better communication and technology-driven solutions. These include offering payment plans, digital customer service options, and clearer explanations of benefits and costs before services are rendered.

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