Module 6.1

Denials Intelligence & Recovery Engine

Most denial reports give you very little actionable information. They give you a claim line item and your adjustment codes, no real insight. Your team is left sorting through a flat list, guessing which claims are worth chasing and which ones aren't, without a clear path to action.

This engine reads your 835 remittance files, reads the CARC and RARC codes inside them, and categorizes every denial by the type of action it needs, whether that's a coding correction, a missing authorization, a credentialing gap, or a documentation issue. Then it ranks every recoverable denial by recovery potential and dollar value so your team always works the highest value claims first. The same intelligence also feeds back into the Pre-flight Claims Engine, so future procedures with the same patterns get flagged before they ever leave your system.


How It Works

Five Steps from Remittance File to Recovery Plan

The engine reads the remit and analyzes the denial, then groups denials by denial category, puts the most recoverable ones at the top of your worklist, and feeds the patterns back into Pre-flight so the same denials do not repeat.

1
Input

Reads 835 Remittance Files

The engine ingests the electronic remittance files your payers send back after adjudication. These are the files that tell you what was paid, what was adjusted, and what was denied, line by line.

2
Decode

Reads Adjustment and Remark Codes

Every denial carries a Claim Adjustment Reason Code (CARC) and often a Remittance Advice Remark Code (RARC). The engine reads both and uses that combination to understand exactly why the payer denied or underpaid the claim or procedure.

3
Categorize

Sorts Denials by Action Needed

Once the engine understands why a denial happened, it sorts it into the category that matches what needs to happen next. Common categories include Coding, Billing, Credentialing, Coordination of Benefits, Authorization, and Plan Limitation Reviews. Each denial is routed to the appropriate category, which allows you to understand the next step without hours of research.

4
Prioritize

Ranks by Recovery Potential

Not every denial is worth the same effort. The engine scores each recoverable denial by the dollar amount at stake, the likelihood of recovery based on the denial type, and the recommended action. Your worklist sorts claims with the highest dollar value and highest recovery potential to the top, so you can focus on the real revenue.

5
Prevent

Feeds the Pre-flight Engine

Every denial the engine processes becomes a signal. The procedure and denial patterns identified here are written back into the denial patterns database that the Pre-flight Claims Engine reads on every future submission. This turns each denial worked today into a preventable denial tomorrow.


Sample Output

Recovery Prioritization Dashboard

This is the centerpiece of the engine. Every denied claim is ranked by recovery potential, so your team knows exactly where to start each morning. The recommended action tells them what to do, not just what happened.

Practice Type: Multi-Specialty Remittance Files Processed: 47 Period: Last 30 days
Total Denials
187
This period
Needs attention
Denial Rate
15.0%
Of claims submitted
Above target
Total Denied
$47,532
Gross denied amount
At risk
Recovery Potential
$31,821
67% recoverable
Actionable
Recovery Prioritization Worklist · Sorted by Recovery ROI
Rank Claim ID Patient CPT Denied Recovery $ Probability CARC Recommended Action
1 CLM0001 Sarah Chen 99214 $1,250 $1,150 92% CARC 23 Immediate Appeal Authorization may be obtainable
2 CLM0017 Carlos Torres 93306 $980 $735 75% CARC 119 Standard Appeal Coding correction needed
3 CLM0042 Thanh Nguyen 70553 $1,500 $1,200 80% CARC 23 Immediate Appeal Pre-auth retrieval
4 CLM0068 Angela Williams 99213 $480 $312 65% CARC 27 Standard Appeal Medical necessity documentation
5 CLM0083 Robert Chen 20610 $320 $128 40% CARC 97 Observe Contractual, harder to recover
6 CLM0099 Elena Rodriguez 99214 $185 $130 70% CARC 21 Standard Appeal Diagnosis code clarification

Fictitious patient names for illustration. Standardized fields match the engine's real output schema. Action recommendations are based on CARC code logic and historical recovery rates for each denial category.

Payer Adjustment Breakdown by Code

Top 5 adjustment codes in this sample, with claim counts and total amounts.

CARC 27
Excluded Service
45
$12,340 denied
CARC 119
Payer Coding
38
$9,876 denied
CARC 21
Diagnosis Mismatch
34
$8,920 denied
CARC 23
No Authorization
28
$7,200 denied
CARC 97
Plan Limitation
22
$4,950 denied

Get Started

Ready to recover the revenue that's already yours?

See how the Denials Intelligence & Recovery Engine fits into your revenue cycle workflow.

Run the assessment