The hidden costs of manual claims status checks

Checking the status of claims is a routine yet costly task in healthcare accounts receivable (A/R). With 25-30% of claims requiring a status check as the first step toward resolution, the time and resources spent can quickly add up—costing organizations thousands of dollars each month. These inefficiencies not only slow down cash flow and burden teams with repetitive, time-consuming tasks.

In this article, we’ll break down the true cost of manual claims management, explore the operational challenges it creates, and discuss how automation can help organizations save time, reduce costs, and improve outcomes.

Quantifying the manual claim status check costs

To get a better sense of claim status check costs, we’ve combined industry data and our findings from internal an time study, based off our robust dataset, to quantify the time and money these manual tasks take. Claims follow-ups are a significant financial and operational burden:

  • Status checks take **3-5 minutes** via payer portals or up to 45 minutes by phone.
  • At an average cost of $9.37 per follow-up, manual processes drive up the cost to collect.

For organizations handling thousands of claims monthly, these costs quickly escalate. For example, an organization processing 10,000 claims monthly could spend over $23,000 solely on claim status checks.

Understanding the claim lifecycle and its challenges

To put these numbers into context, understanding the process is key. Claims pass through multiple stages—received, in-process, pending, approved, or denied—before reimbursement is finalized. Along the way, delays can occur due to payer updates, requests for additional documentation, or manual reviews.

These delays directly contribute to increased costs and resource strain.

Claims follow-ups involve:

  • Logging into payer portals and navigating disparate systems.
  • Investigating flagged claims to identify root causes, such as missing documentation or coding errors.
  • Resubmitting information or contacting payers for clarification.

The repetitive nature of these tasks diverts resources from higher-value activities, such as denial prevention and collections optimization. Additionally, payer requirements vary widely, adding complexity and further lengthening the process.

Operational and financial implications

The inefficiencies of manual claims follow-ups have wide-reaching effects:

  • Delayed resolutions increase A/R days and slow cash flows.
  • Higher operational costs burden organizations, compounding financial challenges.
  • Lost revenue opportunities occur when claims are abandoned due to time constraints.
  • Patient dissatisfaction arises from delays in accurate billing.

As you can see, manual claims management is costly and with limited staffing resources and a high volume of claims, it is unsustainable.

Automating claims status checks can help

Automation of claims status checks eliminates manual inefficiencies, saving time, reducing costs, and improving workflows. Key benefits include:

  • Portal-Free Updates: Automation retrieves claim statuses directly, eliminating the need for staff to log in or manually check payer portals.
  • Real-Time Information: Automated tools ensure claim statuses are always current, reducing delays caused by outdated data.
  • Streamlined Workflows: Integrated updates allow staff to focus on flagged claims, speeding up resolution.
  • Scalable Efficiency: Automation handles thousands of claims simultaneously, preventing backlogs and ensuring timely follow-ups.

By automating this step, organizations accelerate resolutions and free resources for higher-value tasks.

Balancing process efficiency and outcomes

Effective claims management is about more than reducing costs—it’s about positioning your organization for long-term success. By investing in efficient workflows and tools, your team can resolve immediate issues, strengthen the overall revenue cycle, and create a better experience for patients.

Automation doesn’t just save time; it improves cash flow, reduces denials, and ensures compliance with payer requirements. For organizations managing high A/R volumes, these benefits are transformative.

Book a demo to learn how automation enhance your revenue cycle management.