Case Study: Denial Management Service Helps Surgeon Recover $32,000 from a Denied Claim

Case Study: Denial Management Service Helps Surgeon Recover $32,000 from a Denied Claim

Introduction

A leading spine surgeon in California faced a major denial from a commercial payer—$32,000 was lost when a herniated disc surgery claim was rejected for “lack of medical necessity.” Despite months of failed conservative treatments, the payer refused to reimburse due to missing documentation and out-of-network status.

In February 2025, Medical Billing Wholesalers stepped in. With our comprehensive denial recovery strategy, we overturned the denial within 60 days, recovered the full claim value, and improved the provider’s documentation and claims workflows.

Client Overview

This case involved a solo practice specializing in complex spine surgeries using minimally invasive techniques.

Challenges

The provider encountered recurring issues that contributed to lost revenue:

  • Lack of Supporting Documentation: Initial claims didn’t include prior treatment history or imaging.

  • Out-of-Network Denial Risks: Insurers applied stricter review policies for OON claims.

  • Unstructured Appeals Process: There was no in-house workflow to manage claim rejections.

  • Manual Records Handling: Documentation was scattered across systems, delaying resubmissions.

These gaps reflect why many surgical practices are re-evaluating internal billing models—read more in our insight on outsourcing medical billing services to improve collections.

Denial-Management-Service-Recover-Surgery-Claim

Our Approach

We launched a focused intervention, combining retrospective audits, provider coordination, and payer-specific appeals documentation.

Analysis

Each challenge was matched with a corrective step:

ChallengeSolution Implemented
Missing proof of medical necessitySubmitted full clinical timeline and PCP-attested necessity letter
Documentation gapsRetrieved pre-operative imaging, PT records, and prior denial explanations
Out-of-network complicationsIncluded medical urgency documentation and CMS-aligned guidelines
Appeals inefficienciesBuilt a structured internal workflow for denial categorization and response
Manual records delayTransitioned practice to a centralized digital intake process

Results

  • $32,000 in previously denied revenue was recovered through a successful appeal.

  • 50% reduction in surgical claim denials achieved post-intervention.

  • Appeals turnaround time improved by 65%.

  • Approval rate for similar procedures increased to 92%.

  • Manual admin time on follow-ups dropped by 40% using automation templates.

Conclusion

With Medical Billing Wholesalers’ Denial Management Services, this spine surgeon not only recovered a high-value denied claim but also improved operational efficiency across the entire billing process.

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