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Industry Insights

Prior Authorization Is Crushing Your Practice: 34 Hours Per Physician Per Week

Medical practices spend 34 hours per physician per week on prior authorizations. See how AI is automating status checks, follow-ups, and payer calls.

8 min read

Your staff is on hold again. Thirty-seven minutes and counting.

The patient needs an MRI. The insurance company needs prior authorization. Your staff needs to reach a human at the payer to check status on a request submitted four days ago. The portal says “pending.” The phone system says “please hold.”

Meanwhile, three more PA requests are waiting to be submitted.

This is the prior authorization crisis. And it’s consuming your practice from the inside out.

The numbers are brutal

According to the 2024 AMA Prior Authorization Physician Survey, medical practices complete an average of 43 prior authorizations per physician per week. Each one requires:

  • Gathering clinical documentation from the EHR
  • Logging into a payer-specific portal (different for each insurance company)
  • Manually entering patient information, procedure codes, and clinical justification
  • Submitting the request
  • Waiting 1-5 business days
  • Checking status (often multiple times)
  • Following up by phone when the portal is unclear
  • If denied: appealing, gathering more documentation, scheduling peer-to-peer reviews

The total burden: 34 hours of staff time per physician per week spent on prior authorization activities. That’s nearly a full FTE dedicated to paperwork for every provider in your practice.

For a 4-physician practice, that’s 136 hours per week. $175,000+ annually in staff costs just to get permission to treat patients.

Why prior auth is different (and harder)

Here’s what most practices don’t realize: unlike billing and eligibility verification, there is no federal mandate requiring payers to offer standardized prior authorization APIs.

What does that mean in practice?

  • Each payer has their own portal (or no portal at all)
  • Many still require fax or phone submissions
  • No standardized data formats across payers
  • Manual re-keying from your EHR to each payer’s system
  • Different clinical criteria for every insurance company
  • Different turnaround times (anywhere from same-day to 2 weeks)

The CMS Interoperability Rule won’t require payer PA APIs until 2027 at the earliest. And even then, adoption will be slow. Large payers will drag their feet. Small payers may never comply.

This problem isn’t getting solved by regulation anytime soon. Practices that want relief need to find it themselves.

Some specialties have it worse

The 43-PA-per-week average masks significant specialty variation. Pain management, orthopedics, and interventional practices often face 60-100+ PA requests per physician per week.

For a pain management practice:

  • Every epidural injection requires PA
  • Every nerve block requires PA
  • Controlled substance prescriptions require PA
  • DME (TENS units, braces) requires PA
  • Conservative treatment documentation required before procedures are approved

The administrative burden scales with procedure volume. The more patients you help, the more paperwork you create.

Where the time actually goes

Breaking down those 34 hours per physician per week:

Status checking: 40% of PA time

The single biggest time sink isn’t submitting PAs — it’s checking on them. Staff logs into portals multiple times per day to see if requests have been approved, denied, or are still pending. When portals don’t update in real-time (most don’t), staff calls the payer. Average hold time: 20-45 minutes per call.

Initial submission: 30% of PA time

Gathering clinical documentation, translating it into payer-required formats, entering data into portals or fax cover sheets. Most of this is manual data entry that could be automated.

Follow-up and appeals: 20% of PA time

Denied requests require additional documentation, appeal letters, and often peer-to-peer calls where your physician has to speak directly with the payer’s medical director. These calls are notoriously hard to schedule and often result in further delays.

Documentation and tracking: 10% of PA time

Recording outcomes, updating patient records, communicating with patients about delays, rescheduling procedures that couldn’t be authorized in time.

The patient impact

Prior auth isn’t just an administrative burden. It delays patient care.

According to the AMA survey:

  • 94% of physicians report PA delays patient access to necessary care
  • 80% of physicians report PA leads to treatment abandonment
  • 33% of physicians report PA has led to serious adverse events for patients

When a patient with chronic pain waits two weeks for an injection authorization, their condition worsens. When a patient gives up because the process is too frustrating, they don’t get better. When a cancer patient’s imaging is delayed, the disease progresses.

The system designed to control costs ends up creating worse outcomes and higher long-term costs.

How AI is changing the equation

Voice AI and automation are attacking the PA problem from multiple angles:

Automated status checks

AI can call payer phone lines, navigate IVR systems, and check PA status without human intervention. What takes your staff 30-45 minutes of hold time takes AI a few minutes. Status checks can run continuously — overnight, weekends, holidays — so your staff arrives to updated information each morning.

Portal automation

Robotic process automation (RPA) can log into payer portals, enter data from your EHR, submit requests, and capture confirmations. The same task that takes your staff 15-20 minutes takes automation 2-3 minutes.

Document extraction

AI can pull relevant clinical information from your EHR notes and format it for payer requirements. No more manual copying and pasting. No more hunting through charts for the specific documentation each payer demands.

Follow-up orchestration

When a PA is pending too long, AI can trigger follow-up actions automatically — another status check, a fax, a phone call. Your staff only handles exceptions that truly need human judgment.

What automation can handle today

Not everything can be automated. But a lot can:

Fully automatable (60-70% of PA work):

  • Status checking via phone IVR and portals
  • Standard submission for common procedures
  • Documentation gathering from EHR
  • Confirmation and tracking
  • Patient communication about status updates

Requires human review (20-30%):

  • Complex clinical justifications
  • Unusual procedure/diagnosis combinations
  • Quality checks before submission

Requires human handling (5-10%):

  • Peer-to-peer reviews with payer medical directors
  • Complex appeals
  • Escalated patient situations

The goal isn’t to eliminate your PA staff. It’s to let them focus on the 20-30% that actually requires human expertise instead of spending 70% of their time on hold.

The ROI math

Current state (4-physician practice):

  • 172 PAs per week (43 x 4 physicians)
  • 136 hours of staff time per week
  • 3.4 FTEs dedicated to PA work
  • Annual cost: $175,000+ (salary + benefits)

With 60% automation:

  • 103 PAs handled automatically per week
  • 54 hours of staff time freed per week
  • 1.3 FTEs redirected to higher-value work
  • Annual savings: $70,000+ in direct labor
  • Plus: faster authorizations, fewer denials, better patient experience

Automation cost: $30,000-50,000 annually. Net benefit: $20,000-40,000 in direct savings, plus significant improvements in authorization speed and approval rates.

Getting started

If prior auth is crushing your practice, start with the lowest-hanging fruit:

1. Automate status checks first

This is the biggest time sink and the easiest to automate. AI calls payer lines, navigates their phone trees, and returns status information. Your staff stops spending hours on hold.

2. Identify your top 5 payers

80% of your PA volume probably comes from 5 payers. Focus automation there first. Full coverage of 5 payers beats partial coverage of 50.

3. Measure your current state

Track time spent on PA activities by category: submission, status checking, follow-up, appeals. You can’t improve what you don’t measure.

4. Start with a pilot

Run automation on status checks only for 30 days. Measure time saved. Expand from there.

The bottom line

Prior authorization is a $23.6 billion annual burden on the US healthcare system. Your practice is paying its share — 34 hours per physician per week in staff time.

The regulatory cavalry isn’t coming. API mandates are years away and will be slow to take effect. Practices that want relief need to build it themselves.

AI automation can handle 60-70% of PA work today: status checks, portal submissions, documentation gathering, follow-up orchestration. Your staff focuses on the exceptions that actually need human judgment.

Your staff is on hold right now. It doesn’t have to be that way.

See how AI handles payer calls for practices like yours.

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Written by Kevin Henrikson