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Optimize Prior Authorization Processes

Prior Authorization causes delays in medical attention and increases administrative burden. Improve overall healthcare system efficiency with AI.

Problem

The prior authorization (PA) process is a significant barrier to timely patient care, particularly for oncology treatments. PA requires manual review of requests, causing delays that negatively impact care quality [1].

Over 80% of PA requests are initially denied [2], and the process can take up to 14 hours per week per physician in administrative work [3].

Why it matters

  • Each year, millions of patients experience delays due to PA.
  • In the U.S., more than 50% of physicians report significant delays caused by PA, directly affecting patient health [4].
  • This problem generates additional costs to the healthcare system and increases administrative burdens.

Solution

Implementing a predictive AI model to automate validation and predict approval probabilities for PA requests. This would reduce review times and speed up treatments. AI can efficiently process large volumes of data, reducing administrative time, improving accuracy, and minimizing human error [2].

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Datasources

  • The synthetic dataset for the model was constructed informed by industry research and articles, ensuring a realistic representation of conditions surrounding PA requests. The model leverages variables such as comorbidities, the severity of health conditions, and medication details, as analyzed in works by McKinsey & Company, Joseph from Forbes, and Psotka et al. from the Value in Healthcare Initiative's publication. These resources allow the model to simulate the intricacies of real-world PA processes.

Citations

  1. American Heart Association. (2020). Prior authorization and its impact on healthcare. Circulation: Cardiovascular Outcomes, 13(11), e006564. https://doi.org/10.1161/CIRCOUTCOMES.120.006564
  2. McKinsey & Company. (2023). AI ushers in next-gen prior authorization in healthcare. McKinsey & Company. https://www.mckinsey.com/industries/healthcare/our-insights/ai-ushers-in-next-gen-prior-authorization-in-healthcare
  3. Joseph, S. (2023). AI and standards aren’t enough: Fixing prior authorization will require something else entirely. Forbes. https://www.forbes.com/sites/sethjoseph/2023/09/27/ai-and-standards-arent-enough-fixing-prior-authorization-will-require-something-else-entirely/
  4. Medicina y Salud Pública. (2023, September 19). Study reveals prior authorization is a barrier to oncology care. Medicina y Salud Pública. https://medicinaysaludpublica.com/noticias/oncologia-hematologia/estudio-revela-que-autorizacion-previa-es-un-obstaculo-para-la-atencion-oncologica/14534

Problem

The prior authorization (PA) process is a significant barrier to timely patient care, particularly for oncology treatments. PA requires manual review of requests, causing delays that negatively impact care quality [1].

Over 80% of PA requests are initially denied [2], and the process can take up to 14 hours per week per physician in administrative work [3].

Problem Size

  • Each year, millions of patients experience delays due to PA.
  • In the U.S., more than 50% of physicians report significant delays caused by PA, directly affecting patient health [4].
  • This problem generates additional costs to the healthcare system and increases administrative burdens.

Solution

Implementing a predictive AI model to automate validation and predict approval probabilities for PA requests. This would reduce review times and speed up treatments. AI can efficiently process large volumes of data, reducing administrative time, improving accuracy, and minimizing human error [2].

Opportunity Cost

Not adopting this solution would keep the administrative burden in place, prolonging treatment delays and reducing system efficiency.

It estimates that automating PA could free up 30% of the time physicians currently spend on administrative tasks [2].


Impact

  • Reduce delays in medical care, improving patient health by speeding up treatment initiation.
  • Alleviate administrative burdens, allowing physicians to focus more on direct clinical care.
  • Automating this process could reduce operational costs by 20-30% and improve overall healthcare system efficiency [2].


Data Sources

  • The synthetic dataset for the model was constructed informed by industry research and articles, ensuring a realistic representation of conditions surrounding PA requests. The model leverages variables such as comorbidities, the severity of health conditions, and medication details, as analyzed in works by McKinsey & Company, Joseph from Forbes, and Psotka et al. from the Value in Healthcare Initiative's publication. These resources allow the model to simulate the intricacies of real-world PA processes.


References

  1. American Heart Association. (2020). Prior authorization and its impact on healthcare. Circulation: Cardiovascular Outcomes, 13(11), e006564. https://doi.org/10.1161/CIRCOUTCOMES.120.006564
  2. McKinsey & Company. (2023). AI ushers in next-gen prior authorization in healthcare. McKinsey & Company. https://www.mckinsey.com/industries/healthcare/our-insights/ai-ushers-in-next-gen-prior-authorization-in-healthcare
  3. Joseph, S. (2023). AI and standards aren’t enough: Fixing prior authorization will require something else entirely. Forbes. https://www.forbes.com/sites/sethjoseph/2023/09/27/ai-and-standards-arent-enough-fixing-prior-authorization-will-require-something-else-entirely/
  4. Medicina y Salud Pública. (2023, September 19). Study reveals prior authorization is a barrier to oncology care. Medicina y Salud Pública. https://medicinaysaludpublica.com/noticias/oncologia-hematologia/estudio-revela-que-autorizacion-previa-es-un-obstaculo-para-la-atencion-oncologica/14534

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