Data from the more than 2,100 hospitals and 300,000 physicians that use Kodiak Solutions' revenue cycle software show that payers initially denied 11.81% of claims in 2024.
11.8%
of claims initially denied in 2024, in Kodiak Solutions' hospital and physician data
Data from the more than 2,100 hospitals and 300,000 physicians that use Kodiak Solutions' revenue cycle software show that payers initially denied 11.81% of claims in 2024.
The rate was 2.4% higher than in 2023. Denials over medical necessity and requests for more information grew, while denials over authorization fell 7.7%.
Source: Rate of initial denials of medical insurance claims continued to rise in 2024, Kodiak Solutions proprietary data show (opens in a new tab), Paragraph beginning "The initial denial rate on claims in 2024". Verified October 2026.
Related charts
- From the blog
Payers initially denied nearly 12% of hospital and physician claims in 2024
Kodiak Solutions, press release on 2024 initial denial rates (May 21, 2025) - From the blog
Billing and scheduling were the fastest-growing hospital uses of predictive AI in 2024
ASTP, Data Brief No. 80: Hospital Trends in the Use, Evaluation, and Governance of Predictive AI, 2023-2024 (September 2025) - From the blog
At the median TEAM hospital, the hospital stay uses 38% to 70% of the target, by surgery
Kent Applied, TEAM position report and method; CMS, TEAM PY1 preliminary target prices; CMS, Medicare Inpatient Hospitals by Provider and Service, 2024; CMS, TEAM episode construction specifications; CMS, payment standardization method; CMS, TEAM model page - From the blog
A TEAM hospital in Track 3 can owe CMS up to 20% of its total target price in a year
CMS, TEAM Model Overview slides (updated September 2026); 42 CFR 512.550, TEAM reconciliation (eCFR)
Sources for the figures above: Rate of initial denials of medical insurance claims continued to rise in 2024, Kodiak Solutions proprietary data show (opens in a new tab); ASTP, Data Brief No. 80: Hospital Trends in the Use, Evaluation, and Governance of Predictive AI, 2023-2024 (September 2025) (opens in a new tab); 42 CFR 512.550, Reconciliation process and determination of the reconciliation payment or repayment amount (opens in a new tab).
Related facts
$4B
Olive's former valuation
Healthcare Dive reported in November 2023 that Olive, a healthcare AI startup once valued at $4 billion, would shut down.
Source: Healthcare Dive, report on the Olive shutdown (November 1, 2023).
KentApplied61%
of hospitals using predictive AI apply it to billing
ASTP reports that among hospitals using predictive AI, the share using it to simplify or automate billing rose from 36% in 2023 to 61% in 2024.
Source: ASTP Data Brief No. 80: Hospital Trends in the Use, Evaluation, and Governance of Predictive AI, 2023-2024.
KentApplied41.2%
of US rural hospitals operate in the red
41.2% of US rural hospitals operate in the red, and the median rural hospital's operating margin is 2.0%, Chartis reported in its 2026 study of rural hospitals.
Source: 2026 Rural Health State of the State.
KentApplied
Sources for the figures above: Healthcare Dive, report on the Olive shutdown (November 1, 2023) (opens in a new tab); ASTP, Data Brief No. 80: Hospital Trends in the Use, Evaluation, and Governance of Predictive AI, 2023-2024 (September 2025) (opens in a new tab); 2026 Rural Health State of the State (opens in a new tab).
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