Top 10 Benefits of Prior Authorization (With Tested Ways to Maximize Approvals)

If you’re a provider managing patient care and ordering MRIs, surgeries, or high-cost medications, there’s one hurdle you know all too well: prior authorization. 

Tens of millions of prior authorization requests are submitted each year. While most of these requests are approved, a notable percentage are denied. Many of those never get appealed, even though the odds of success on appeal are surprisingly high. 

“In this post, we’ll break down the what, why, and how of prior authorization (plus proven strategies to get them approved) 

What is Prior Authorization (PA)? 

Prior authorization, also called pre-authorization, is when a payer reviews and approves a medical service, procedure, or medication before it’s provided to a patient. 

The goal is to make sure the procedure is medically necessary and covered under the patient’s plan benefits. 

Message box:  

In the U.S., “Prior Authorization” goes by many names!  

Most commonly, you’ll see Prior Authorization (PA) or Pre-authorization, but depending on the service, you might also encounter Pre-certification, Pre-approval, or Authorization Request. Even though the names differ, they all mean the same thing: getting insurer approval before the service is provided. 

Let’s look at a real-world example to see how this works in practice and why it matters. 
 

Real-World Example of How Prior Authorization Works 

A patient presents with persistent lower back pain that has not improved, despite conservative management, including physical therapy, NSAIDs, and activity modification. Concerned about possible nerve compression or disc pathology, you determine that an MRI is the appropriate next step. 

Because MRI is a high-cost procedure, prior authorization is required before scheduling. You submit the request to the patient’s insurance, including their medical history, prior imaging results, documentation of conservative treatments attempted, and your clinical justification for why advanced imaging is medically necessary. 

The insurer reviews the case and grants approval, confirming that the procedure is covered under the patient’s benefit plan and meets medical necessity criteria. With authorization secured, you can schedule the MRI, ensuring guaranteed reimbursement for your practice and preventing unexpected out-of-pocket expenses for the patients. 

Now that we’ve covered what prior authorization means, let’s talk about why it matters. 

Top 10 Reasons Why Prior Authorization is Necessary 

1. Confirms Medical Necessity 

Think of prior authorization as a safety check. It ensures that every test, procedure, or medication you order is clinically justified. This keeps patients safe from unnecessary interventions and ensures your care meets established medical standards. 

2. Helps Control Healthcare Costs 

Prior authorization prevents unnecessary duplication of services by reviewing requests up front. This keeps healthcare delivery efficient and cost-conscious while also sparing patients the expense of tests or treatments that may not add value. 

3. Protects Patient Safety 

One of the most important functions of prior review is safety. Having another layer of oversight reduces the chance of unsafe or inappropriate care, which is particularly critical when you’re prescribing high-risk medications or recommending complex procedures. 

4. Ensures Evidence-Based Care Decisions 

The process also reinforces the use of clinical guidelines. By encouraging evidence-based care, prior authorization helps reduce variation in practice patterns and leads to more consistent, positive patient outcomes. 

5. Prevents Compliance Issues and Billing Errors 

Proper documentation during prior authorization does more than get approval; it shields your practice from compliance pitfalls. It helps avoid denied claims, audits, or regulatory concerns that could otherwise slow down care and create administrative headaches. 

6. Encourages Cost-Effective Alternatives 

Sometimes, the review highlights options you might not have initially considered, like a generic drug or a less expensive diagnostic test that provides the same benefit. This helps maintain quality while keeping care affordable for patients. 

7. Coordinates Care Across Multiple Specialties 

For patients seeing several specialists, prior authorization acts as a checkpoint to make sure all services are aligned. This reduces scheduling conflicts, avoids coverage gaps, and ensures the care plan remains cohesive. 

8. Confirms Coverage for High-Cost Treatments 

When dealing with costly procedures or specialty medications, prior authorization offers reassurance. By confirming coverage in advance, you protect your patients from unexpected financial burdens and give your practice clarity before moving forward. 

9. Reduces Claim Denials and Administrative Work 

By reducing denied claims, prior authorization cuts down on back-and-forth with payers and allows your staff to stay focused on their job rather than handling paperwork. 

10. Improves Communication with Payers 

Finally, prior authorization opens a direct line of communication with insurers. This dialogue helps clarify expectations, avoid delays, and create a smoother pathway for your patients to receive the care they need. 

Above all, prior authorization helps strengthen your practice’s reputation, keeps patients informed about costs, and uncovers coverage gaps early. Submitting requests accurately and on time shows professionalism, building trust with patients and insurers. It also gives patients a clear picture of potential out-of-pocket expenses and allows providers to plan alternative treatments or support programs when coverage limitations are identified. 

How to get Prior Authorization requests approved (Proved methods) 

Getting prior authorization approved doesn’t have to be a headache. You can improve approval rates, reduce delays, and minimize administrative workload by following proven methods and best practices. 

Provide Complete and Accurate Documentation: Include all relevant clinical notes and supporting information, as incomplete requests are the most common reason for denials. 

Follow Payer Guidelines Closely: Track all payer requirement updates to avoid unnecessary denials and keep your submissions compliant. 

Provide Proper Clinical Justification: Clearly explain why the service or medication is necessary, referencing clinical guidelines, patient history, and prior treatments. 

Submit Requests Promptly: Send your requests early so insurers have time to review, and you have room to provide additional information or alternative care plans if needed. 

Track and Appeal Denials When Appropriate: Monitor denied requests, respond quickly, and appeal when there’s strong clinical evidence, as many requests get approved on appeal. 

Leverage Technology Tools: Use electronic prior authorization platforms to ensure completeness, track request status, and get alerts for missing information. 

Communicate Effectively with Payers: Maintain a clear point of contact and communicate proactively to clarify requirements and resolve issues before they become denials. 

Providers can either consistently apply these methods in-house to handle prior authorization or opt for an all-in-one solution by outsourcing RCM services. This allows experts to manage submissions, follow-ups, and appeals, enabling your practice to concentrate on uninterrupted patient care while boosting efficiency and approval rates. 

Why Consider Outsourcing RCM Services 

Handling prior authorizations, claims, and billing can quickly become overwhelming for a busy practice managing a constant flow of patients. Many practices looking to grow find it valuable to outsource Revenue Cycle Management (RCM) services. Experts like QWay Healthcare act as an extension of your practice, handling every step from documentation and submissions to follow-ups and appeals. 

What QWay Healthcare can do for your practice: 

• Maximize Prior Authorization Success: We draft prior authorization requests with all supporting documents to improvemaximize approval ratessuccess. 

• Ensure Claim Accuracy: With deep payer understanding, we create claim requests that meet the insurer’s every requirement. 

• Prevent Care Delays: Our team ensures requests are submitted early to prevent delays in critical care. 

• Ease Administrative Burden: We handle the complexities of tracking claims to ease your administrative burden. 

• Provide Ongoing Training: We educate your providers and staffprovide ongoing provider training on correct clinical justification and proper documentation to secure approvals consistently. 

• Deliver Advanced Tools: Our services arecome equipped with advanced tools, allowingletting your practice to benefit without investing in costly in-house systems. 

Managing prior authorizations, claims, and billing is a critical but time-consuming part of running a practice. Providers can improve approval rates and reduce administrative burden by following proven methods such as complete documentation, adherence to payer guidelines, timely submissions, and effective appeals.  

For practices looking to scale or streamline operations, outsourcing Revenue Cycle Management (RCM) services to experts like QWay Healthcare ensures every step, from prior authorization requests to follow-ups and appeals, is handled efficiently. This allows your team to focus on delivering quality patient care while maintaining compliance, reducing denials, and maximizing reimbursement. 

Want to master prior authorization? Book a free consultation with QWay Healthcare and turn this challenge into a competitive advantage for your practice.