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Healthcare · Glossary

Prior Authorization

Prior authorization is the process where providers must get approval from a payer before delivering certain treatments, tests, or drugs for them to be covered. It is a major source of administrative burden and care delays in US healthcare.

Reform efforts focus on electronic prior authorization, standardized criteria, and automation that pulls clinical evidence directly from the EHR. Vendors and payers are racing to cut turnaround from days to minutes.

In practice

In day-to-day healthcare operations, prior authorization is primarily managed by providers, administrative staff, and insurers. When a physician prescribes a treatment that requires prior authorization, it triggers a review process that can delay patient care. These decisions influence clinical workflows, impact patient satisfaction, and potentially lead to lost revenue for healthcare facilities if approvals are delayed or denied. Commercially, it affects operational costs, as excessive administrative burdens can strain resources and degrade overall efficiency in care delivery.

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