Denial management attempts to eliminate the reasons leading to denials in medical claims. Moreover, denial management analyses the denials and tries to ensure that the same does not occur in the future and helps organizations achieve a healthy financial operating environment.

Establishing a denial management team is important because, without a proper denial management strategy that can follow up on the denials and rectify them, it will lead to unpaid services which will result in unhealthy financial situations for the healthcare organizations.

Insurance agencies tend to deny claims due to wrong or misinformation in claims. Hence it gravely affects the revenue inflow in healthcare organizations and also lack of follow-ups leads to denials being abandoned and unresolved.

Denial management teams analyze the claim denial trends and correct them to avoid future denials.

A good denial management team adheres to the IMMP process, a technique, i.e., Identify, Manage, Monitor, and Prevent which is essential to reduce/prevent denials.