Paying a bill or have a question about your account? Make a paymentConsumer help

CareersContact

Got a letter or call from TSI about an account you owe? Go to the Consumer Support Hub.

Denial appeal break-even calculator

Find the claim value below which an appeal costs more than it brings back, on average. The cost to work a denial starts at Premier's 2023 average, and you can swap in your own.

Enter one claim. You'll see its expected net, the break-even claim value, and the overturn rate this claim would need to pay back.

Open the calculator

Free, with no form to see your result. Your numbers stay in your browser unless you email yourself the result.

Sample dataOne $250 claim, appealed

$286.15Break-even claim value at these rates

  • Expected cash$50.00
  • Cost to work it$57.23

Worked example below: 50% overturn rate, 40% of billed charges paid.

Check one claim

Find the claim value below which an appeal costs more than it brings back, on average. The cost starts at Premier's average for 2023 claims, and you can replace it with your own. Nothing you type leaves your browser unless you choose to send it.

Starts at $57.23, Premier's average per contested denial for 2023 claims (vendor-published member survey, February 2025). Replace it with your own cost.

Share of similar denials overturned, from your own history for this payer and denial type. Type 50 for 50%.

What an overturned claim pays, as a share of billed charges. Type 100 if you enter the expected payment as the claim value.

Billed charges on the claim you're deciding on. For example, 250.

Your result

Fill in your numbers, or use the example, and your result appears here.

See the full math

At Premier's 2023 averages, where 68.6% of denied claims were ultimately paid, break-even is $57.23 ÷ 0.686 = $83.43 of payment per overturned claim (TSI calculation).

How break-even is calculated

Claim value is billed charges. Share collected is what an overturned claim pays, as a share of those charges.

  1. Payment if overturned Claim value × share of billed charges collected.
  2. Expected cash Payment if overturned × overturn rate.
  3. Expected net Expected cash − cost to work one denial.
  4. Break-even claim value Cost ÷ (overturn rate × share collected).
  5. Overturn rate needed Cost ÷ payment if overturned, shown as over 100% when no overturn rate would pay back.

Worked example: one $250 claim

Input or resultValue
What goes in
Cost to work one denial$57.23
Overturn rate50%
Share of billed charges collected40%
Claim value$250
What comes out
Payment if overturned$100.00
Expected cash$50.00
Expected net-$7.23
Break-even claim value$286.15
Break-even payment$114.46
Overturn rate needed57.2%

At these rates, appealing a $250 claim loses $7.23 on average. Claims above $286.15 pay back their appeal cost.

At Premier's 2023 averages, where 68.6% of denied claims were ultimately paid, break-even is $57.23 ÷ 0.686 = $83.43 of payment per overturned claim (TSI calculation).

Press “Fill in the example” in the calculator above to load these numbers and check them.

Break-even claim value at 40% collected

Rows are overturn rates; columns are the cost to work one denial. The calculator adds a column for your own cost and uses your share collected.

Overturn rate$25.00$43.84$57.23$75.00$100.00
20%$312.50$548.00$715.38$937.50$1,250.00
30%$208.33$365.33$476.92$625.00$833.33
40%$156.25$274.00$357.69$468.75$625.00
50%$125.00$219.20$286.15$375.00$500.00
60%$104.17$182.67$238.46$312.50$416.67
70%$89.29$156.57$204.39$267.86$357.14
80%$78.13$137.00$178.84$234.38$312.50

Benchmarks on this page

$57.23

Average cost to work one contested denial, 2023 claims

Source: Premier, average cost per contested denial for 2023 claims (vendor-published member survey, February 2025)

68.6%

Share of denied claims ultimately paid, 2023 claims

Source: Premier, same member survey (February 2025)

Questions about this calculator

What's a break-even claim value?

The billed charges at which an appeal's expected cash equals the cost to work it. Above it, appeals pay back on average; below it, they cost more than they return.

Why does the share collected matter so much?

An overturned claim rarely pays full billed charges. At 40% collected, a $250 claim pays $100 when it's overturned, so break-even climbs to $286.15 at a 50% overturn rate.

Where does the $57.23 come from?

It's Premier's average cost per contested denial for 2023 claims, from a member survey Premier published in February 2025. Replace it with your own cost if you track it.

When should I use the by-band calculator instead?

When you're deciding on a whole class of denials. The by-band calculator splits one payer's denials into claim-value bands and adds up the yearly net for each.

Have us check this against your data

The Denials Economics Sprint works one payer and one denial class and measures overturn, paid yield and cost per claim against your own baseline, so your break-even comes from real results.

Request a Denials Economics Sprint

The Denials Economics Sprint is free and carries no obligation. Any work after it is scoped and priced separately, and only if you choose to go ahead.

Keep going

Denial economics by claim value

Which claim-value bands of one payer and denial class pay back the cost of an appeal.

Healthcare Revenue Cycle Management (RCM)

Denials, appeals, early-out and patient balances for hospitals and health systems.

All calculators

Agency net-back, sell or place, denial economics and appeal break-even.

Paying a bill? Go to the payment portal

TSI Virtual Assistant
How can I help you today?
|
×