JHDHP Knowledge Center

Where Revenue Leakage Quietly Suppresses Margin

Written by Kimberly Buser | Feb 27, 2026 1:15:00 PM

Revenue leakage rarely produces a dramatic event. It accumulates through preventable denials, billing lag, underpayments that go unreconciled, and rework that becomes normalized.

Across multi-site organizations, 5–10% of collectible revenue is often suppressed not by volume, but by workflow inconsistency.

Common drivers include:

  • Eligibility changes not revalidated

  • Authorization misalignment

  • Elevated first-pass denial rates

  • Denials worked without root-cause correction

  • Underpayments posted without structured reconciliation

  • Aging balances tied to weak front-end collection

The financial impact compounds quietly until cash flow slows and A/R stretches.

What Distinguishes Recoverable Leakage from Chronic Loss

Organizations that successfully recover suppressed margin do three things differently:

  • They quantify exposure rather than estimate it

  • They isolate denial categories tied to preventable root causes

  • They reconcile underpayments systematically — not opportunistically

  • They measure cost-to-collect alongside revenue performance

  • They assign ownership at each revenue lifecycle stage

Leakage becomes chronic when it is normalized. It becomes recoverable when it is structured, segmented, and governed.

Revenue compression is rarely a staffing issue. It is a control issue.

Closing Gaps Without Replacing Systems

Revenue recovery rarely requires new technology. It requires tightening the handful of processes driving loss:

  • Defined intake controls

  • Clean claim discipline

  • Structured denial analytics

  • Underpayment validation

  • Cost-to-collect visibility

  • Explicit ownership across teams

Organizations that quantify leakage and redesign structure often recover margin within a quarter — without expanding headcount.

Visibility clarifies exposure. Structure restores control.