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Denial economics by claim value

Some denials cost more to appeal than they'll ever pay back. Pick one payer and one denial class, split its denials into claim-value bands, and see which bands earn their appeal cost.

You'll get the yearly net for each band, the break-even claim value, and what working only the paying bands would be worth.

Open the calculator

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

Sample dataNet a year, by claim value

$309,613A year from the 3 bands that pay back

  • Under $250-$36,276
  • $250 to $1,000$42,216
  • $1,000 to $5,000$141,231
  • Over $5,000$126,166

Worked example below: one payer, one denial class, 2,360 denials a year.

Work out your bands

Pick one payer and one denial class, then split its denials into claim-value bands. See which bands pay back the cost of an appeal and which don't. Nothing you type leaves your browser unless you choose to send it.

Your costs

Staff time plus any per-claim vendor fee. 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.

Cash collected as a share of billed charges, on the claims that get overturned. Type 40 for 40%.

If a vendor is paid a share of what's recovered. Leave it blank if not.

Your claim-value bands

Band 1

For example, Under $250.

For this payer and denial class. For example, 800.

Average billed charges on denied claims in this band. For example, 550.

Share of these denials overturned, counted by claims, from your own history. Type 50 for 50%.

Band 2

For example, Under $250.

For this payer and denial class. For example, 800.

Average billed charges on denied claims in this band. For example, 550.

Share of these denials overturned, counted by claims, from your own history. Type 50 for 50%.

Band 3

For example, Under $250.

For this payer and denial class. For example, 800.

Average billed charges on denied claims in this band. For example, 550.

Share of these denials overturned, counted by claims, from your own history. Type 50 for 50%.

Band 4

For example, Under $250.

For this payer and denial class. For example, 800.

Average billed charges on denied claims in this band. For example, 550.

Share of these denials overturned, counted by claims, from your own history. Type 50 for 50%.

Your result

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

See the full math

Overturn rate counts claims. Paid yield counts dollars, on the claims that were overturned. Each is applied once, so expected cash per appeal is claim value × overturn rate × paid yield, less any vendor share.

These are averages. A band below break-even can still hold individual claims worth working.

How each band is calculated

Overturn rate counts claims. Paid yield counts dollars on the claims that were overturned. Each is applied once, so the overturn rate is never counted twice.

  1. Expected cash per appeal Average claim value × overturn rate × paid yield × (1 − vendor share).
  2. Net per appeal Expected cash per appeal − cost to work one denial.
  3. Net a year Net per appeal × denials a year in the band.
  4. Break-even claim value Cost to work one denial ÷ (overturn rate × paid yield × (1 − vendor share)). Bands whose average claim sits above it pay back.

Worked example: 4 bands, $57.23 per appeal, 40% paid yield

Under $250$250 to $1,000$1,000 to $5,000Over $5,000
What goes in
Denials a year1,20080030060
Average claim value$150$550$2,400$9,000
Overturn rate45%50%55%60%
What comes out
Expected cash per appeal$27.00$110.00$528.00$2,160.00
Net per appeal-$30.23$52.77$470.77$2,102.77
Net a year-$36,276$42,216$141,231$126,166
Break-even claim value$317.94$286.15$260.14$238.46
Worth working?NoYesYesYes

Working all 4 bands nets $273,337 a year. Working the 3 bands above $250 nets $309,613, because the under-$250 band loses $36,276.

These are averages. A band below break-even can still hold individual claims worth working.

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

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 the difference between overturn rate and paid yield?

Overturn rate is the share of appealed claims that get overturned, counted by claims. Paid yield is the cash you collect on those overturned claims, as a share of billed charges. The calculator multiplies them once, so neither is double-counted.

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, including any per-claim vendor fee.

Should I stop appealing a band below break-even?

Not on the average alone. A band below break-even can still hold claims worth working, so sort that band's claims by value, or test it on a sample before you drop it.

Which payer and denial class should I start with?

One with enough volume to measure and claim values high enough for the economics to matter. That's the same cohort a Denials Economics Sprint starts from.

Does TSI see the numbers I type?

No. The math runs in your browser, and nothing is sent unless you fill in the email form under your result and press send.

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.

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