Cash Leakage Calculator
The Cash Leakage Calculator quantifies the annual dollar impact of revenue cycle gaps based on your practice's monthly gross charge volume, current denial rate, underpayment rate, write-off percentage, and timely filing loss rate. All calculations run in the browser — no data is transmitted. Outputs are benchmarked against MGMA and HFMA norms so you can see both the dollar amount at risk and how your leakage rate compares to peer practices.
The calculator separates leakage into four categories: denial leakage (claims denied and not appealed or not recovered through appeal), underpayment leakage (claims paid below contracted rate without recovery action), write-off leakage (balances written off above the MGMA benchmark write-off rate), and timely filing leakage (claims lost to CO-29 denials). Each category has a different recovery strategy and a different benchmark for what constitutes normal vs. excessive loss.
Representative outputs: a primary care practice billing $250,000/month gross with a 10% denial rate, 3% underpayment rate, and 4% write-off rate shows approximately $156,000 in annual addressable leakage — money that is either recoverable through appeals and payer audits, or preventable through front-end workflow improvement. MGMA benchmark: practices at the 75th percentile in collection performance lose less than 1.8% of net charges to write-offs and less than 6% of submitted claims to denials.