Reducing reimbursement friction, and reclaiming millions with accurate patient identification

Patient identification is important. It’s also complicated.

Healthcare providers care for countless John Smiths, Maria Garcias, and Michael Lees. In fact, the average healthcare organization has seven patients who share the same most common name. That overlap can lead to identification errors that have serious repercussions for patient safety and the financial well-being of healthcare organizations – and names are only one way that patient misidentification happens.

When patients are not correctly matched to their medical records, the results can be costly and dangerous. In some health systems, patient matching accuracy is only 80% within a single care setting. When records are exchanged electronically between organizations, accuracy drops to 50%.

The cost of healthcare claim denials

Insurance reimbursement depends on clean, accurate data. If there’s a mismatch — whether it’s a duplicate record, wrong birthdate, or missing demographic field — claims are likely to be denied. The Ponemon Institute found that 35% of all claim denials trace back to inaccurate patient data, meaning this very expensive problem is also avoidable with the right solution.

Studies show that the average hospital loses $17.4 million annually due to misidentification-related claim denials. But lost revenue doesn’t just stem from the initial denial. Fixing each one costs an average of $25 per claim for practices and $181 for hospitals. On top of that, over a third of organizations report spending $1.3 million a year trying to resolve patient identity issues.

What begins as a simple mismatch or overlay quickly escalates into a chain reaction: delays, rework, mounting costs, and frustrated, dissatisfied patients – all stemming from one medical error.

The hidden administrative burden of medical overlays

Behind every medical claim denial is an administrative team working overtime to fix it. Hospitals report spending an average of 109.6 staff hours per week untangling identity issues. Many even employ 10 full-time staff members dedicated entirely to patient identity resolution.

That’s not just expensive, it’s unsustainable. Staff stretched thin by preventable administrative work have less time to focus on patient needs and strategic priorities.

Why biometrics are gaining traction in healthcare

Traditional identity verification methods, such as asking for ID, confirming name and date of birth, or cross-referencing demographic details, can only go so far. Biometric patient identification – a something you know authentication factor that is extremely difficult to spoof – adds a layer of certainty that eliminates the guesswork.

According to the Ponemon Institute:

• 72% of healthcare leaders believe biometric identification at registration could improve cash flow
• 76% believe biometrics could cut denied claims by 25%, and shorten accounts receivable cycles by 22%
• 80% believe that reducing denied claims could improve hospitals' overall cash flow by 25%

These aren’t marginal improvements; they’re game-changers in an industry where margins are already razor-thin.

Turning strategy into action with biometric authentication

While industry consensus is building around biometric authentication, the real challenge lies in implementing it in ways that seamlessly integrate into clinical and administrative workflows, while also complying with privacy regulations. That’s where Imprivata Patient Access comes in.

This proven identity verification solution combines biometric face authentication technology with tools designed to reduce friction at registration. By embedding reliable patient identity confirmation into existing workflows, organizations can:

• Stop claim denials before they happen, by catching misidentification at the source
• Reclaim millions in lost revenue, reducing the waste tied to rework and appeals
• Lighten the administrative load, freeing staff to focus on higher-value work

In short, Imprivata Patient Access turns what has long been a pain point into an opportunity: better patient safety, smoother operations, and a stronger financial foundation.

Patient misidentification has been tolerated for too long as a “cost of doing business” in healthcare. But the costs are too high, especially considering that the cost-reducing solution is already here. Biometric identity verification with Imprivata Patient Access offers a practical path to reclaiming millions while protecting patients and organizations from the fallout of preventable errors.

Want to see Imprivata Patient Access in action? Request a demo today.