> RCM: A Southwestern RCM Operator Reduced Denial Rework by 34% with Praxi Data

Case Study

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Client context:

A Southwestern outsourced Revenue Cycle Management provider serving multi-specialty physician groups, ambulatory surgery centers and regional hospital outpatient departments.

Challenge:

The client had built its reputation on disciplined billing operations, experienced denial teams and strong payer knowledge. But by late 2025, the company was facing a familiar RCM problem: its people were working harder, while reimbursement performance was becoming less predictable.

The issue was not a lack of RCM tooling. The client already used a clearinghouse platform, payer portals, workflow automation and reporting dashboards. The problem sat underneath those systems. Eligibility data, authorization records, coding notes, payer rule references, clinical documentation and denial history were fragmented across client EHRs, document repositories, spreadsheets and portal exports.

This created two immediate business pressures.

First, preventable denials were increasing. Across a pilot group of 18 provider clients, The client’s average initial denial rate had reached 12.4%, with missing documentation, eligibility mismatches, inconsistent payer-rule interpretation and coding classification gaps driving the largest share of avoidable failures.

Second, manual exception handling was consuming operational capacity. Denial analysts and billing specialists were spending too much time reconciling source materials before they could even act. The work was necessary, but low-leverage. It slowed root-cause analysis, increased handoffs and made offshore and onshore workflows harder to audit consistently.

Solution:

The client piloted Praxi Data across a controlled claims workflow covering approximately 210,000 annualized claims. Praxi was deployed on AWS beside the client’s existing environment as Operational Intelligence Infrastructure. It did not replace the clearinghouse, billing platform, client EHRs or reporting stack.

Source records remained inside the client-controlled systems. Praxi synchronized operational intelligence through metadata, semantic reconciliation, operational context and auditable lineage.

The pilot focused on three operating objectives:

  1. Normalize fragmented payer, provider, authorization and claims context before submission.
  2. Improve the accuracy of denial-risk classification and root-cause routing.
  3. Reduce manual verification work without weakening auditability or source-system control.

Benefit:

Within two weeks, Praxi had profiled and reconciled the priority operational entities across the pilot environment. Within the first full quarter, The client saw measurable improvements.

Initial denial rate across the pilot cohort fell from 12.4% to 9.2%, a 26% relative reduction. First-pass claim resolution improved from 86.8% to 91.1%. Manual denial-prep time dropped by 34%, largely because analysts no longer had to reconstruct documentation, payer context and eligibility history from multiple disconnected systems before taking action.

The operational effect was visible inside the team. Average denial root-cause review time fell from 18 minutes to 11 minutes per claim. Claims requiring senior escalation decreased by 22%. New analyst ramp time shortened from 10 weeks to 7 weeks because Praxi gave teams a consistent operational context layer instead of forcing each employee to learn every client’s fragmented system logic manually.

By the end of the pilot, The client estimated $740,000 in annualized operational and reimbursement impact across the initial cohort, combining lower rework cost, reduced leakage from preventable denials, faster resolution and improved analyst throughput.

The result was cleaner operational intelligence, fewer avoidable denials, less manual reconstruction and a stronger foundation for every RCM workflow already in place.