Revenue leakage is the unforeseen and unrecognized loss of revenue in a business. Mistakes in pricing, inability to record customer changes and manual processing often cause revenue leakage.
In the healthcare industry, referrals are a major source of revenue leakage. If a patient receives a referral but doesn’t schedule an appointment, the provider loses revenue. Other common causes of revenue leakage in healthcare organizations include unresolved claims denials, unrepresented ICD-10 codes, underpayments from insurers and missed patient collections.
Revenue leakage is important because it can result in lost earnings in a healthcare business. By understanding where and how leaks occur, a company can proactively address these areas to ensure less wealth is lost.