Write-Off Analysis

Track uncollectible denials with preventability analysis to reduce future losses.

Overview

Write-offs represent accepted financial losses where denials cannot be recovered. Tracking with preventability analysis helps identify root causes and prevent similar losses.

Tools Used

Tool	Purpose
`create_write_off`	Write off uncollectible amount with preventability tracking
`list_write_offs`	Query write-offs with filters
`get_write_off_analytics`	Preventable write-off analysis

Example: Seeded Write-Off

The database contains 1 seeded write-off:

Write-Off	Denial	Claim	Amount	Reason	Preventable
950e8400...001	PR-1	CLM-2024-001236	$15	below_threshold	Yes

Review Write-Offs

User prompt:

Show me our write-offs and whether they were preventable.

What happens:

The list_write_offs tool retrieves write-offs:

{
  "write_offs": [
    {
      "id": "950e8400-e29b-41d4-a716-446655440001",
      "denial_id": "750e8400-e29b-41d4-a716-446655440002",
      "claim_id": "650e8400-e29b-41d4-a716-446655440003",
      "write_off_amount": 15.0,
      "write_off_reason": "below_threshold",
      "reason_notes": "Amount below $25 small-balance threshold per organization policy. Cost to pursue exceeds potential recovery.",
      "approved_by": "Billing Manager",
      "approval_date": "2024-01-30",
      "category": "PATIENT_RESPONSIBILITY",
      "is_preventable": true
    }
  ],
  "total": 1,
  "total_amount": 15.0
}

Expected Response:

You have 1 write-off totaling $15:

CLM-2024-001236: $15 written off (below $25 threshold)

Reason: PR-1 patient responsibility, cost to pursue exceeds recovery

Approved by: Billing Manager on 1/30/2024

Preventable: Yes - eligibility could have been verified at registration

Write-Off Analytics

User prompt:

What's our write-off analysis?

The get_write_off_analytics tool returns:

{
  "total_write_offs": 1,
  "total_amount": 15.0,
  "preventable_count": 1,
  "preventable_amount": 15.0,
  "preventable_percentage": 100,
  "by_reason": {
    "below_threshold": { "count": 1, "amount": 15.0 }
  },
  "by_category": {
    "PATIENT_RESPONSIBILITY": { "count": 1, "amount": 15.0 }
  },
  "insights": [
    "100% of write-offs ($15) are preventable",
    "Top reason: below_threshold (100%)",
    "Consider eligibility verification at registration"
  ]
}

Workflow Diagram

Write-Off Reasons

Reason	Description	Typically Preventable
`below_threshold`	Amount too small to pursue	Sometimes
`timely_filing_expired`	Past appeal deadline	Yes
`non_covered_service`	Service not covered by plan	Sometimes
`patient_responsibility`	Transferred to patient balance	Sometimes
`contract_adjustment`	Contractual write-off	No
`uncollectible`	Unable to collect	Varies

Next Steps

Appeals Management - Exhaust appeal options first
Cash Leakage - Identify write-off trends
Denial Triage - Route denials appropriately

Overview​

Tools Used​

Example: Seeded Write-Off​

Review Write-Offs​

Write-Off Analytics​

Workflow Diagram​

Write-Off Reasons​

Categories​

Next Steps​