What is the primary function of denial management in revenue cycle management?

• A. Scheduling patient visits.
• B. Addressing and overturning payer denials.
• C. Auditing labor costs.
• D. Collecting patient demographics.

Answer: (B)

Denial management in the revenue cycle focuses on recovering revenue that would be lost when an insurance payer denies a claim. The main function is to identify the reason for each denial, gather any missing documentation or corrections, and resubmit or appeal the claim to the payer. By doing this, organizations improve cash flow, reduce days in accounts receivable, and learn from denial patterns to prevent future denials. The other activities—scheduling patient visits, auditing labor costs, and collecting patient demographics—are important parts of the broader revenue cycle but do not specifically address payer denials.