Waystar unveils transformative generative AI innovation to help providers recover billions of dollars tied to 450 million annual denied claims

Rhea-AI Summary

Waystar (Nasdaq: WAY) has launched Waystar AltitudeAI™, featuring AltitudeCreate™, a groundbreaking generative AI technology designed to automate the appeal process for denied healthcare claims. The innovation aims to help providers recover substantial portions of payments from over 450 million annually denied claims.

The initiative addresses significant challenges in healthcare administration, where $350 billion is lost annually to administrative waste, and hospitals spend $20 billion yearly attempting to overturn denied claims. More than half of denied claims are ultimately overturned, but the process is traditionally time-consuming and error-prone.

Waystar's platform processes over five billion annual transactions for approximately 50% of patients nationwide. The company's AI capabilities are now unified under the Waystar AltitudeAI™ brand, focusing on improving healthcare payment efficiency and accuracy.

Positive

• Launch of innovative AI technology to automate and streamline denied claims appeals process
• Platform processes 5 billion annual transactions covering 50% of US patients
• Addresses a $350 billion market opportunity in administrative waste
• Targets recovery from 450 million annually denied claims

Negative

• None.

Healthcare providers gain access to first-of-its-kind generative AI technology, leading to faster and more accurate payments

LEHI, Utah, and LOUISVILLE, Ky., Jan. 13, 2025 /PRNewswire/ -- Waystar (Nasdaq: WAY), a provider of leading healthcare payment software, today announced the launch of Waystar AltitudeAI™, a comprehensive set of AI capabilities for providers, including AltitudeCreate™, a new generative AI innovation focused on appealing denied claims. By autonomously generating appeal letters, Waystar aims to help providers recover a substantial portion of payments tied to more than 450 million annually denied claims, ultimately enabling faster and more accurate healthcare payments.

The U.S. healthcare system annually loses $350 billion to administrative waste. Recent reports estimate that hospitals and health systems spend $20 billion annually trying to overturn denied claims, with denial rates rising. Additionally, claim denials are associated with reduced access to care and lower patient satisfaction. Waystar's generative AI capabilities are transforming the denial appeal process for providers, and according to a recent Modern Healthcare report conducted in collaboration with Waystar, providers are eager to invest in AI that demonstrably reduces administrative waste, enhances operational efficiency, and improves interactions with payers and patients.  

"More than half of denied claims ultimately get overturned, but the appeal process is time-consuming, complex, and error-prone for providers," said Matt Hawkins, Chief Executive Officer of Waystar. "Generative AI unlocks a new era of productivity and precision, transforming how the industry simplifies claims, appeals, and payment workflows. With Waystar's AI-powered software platform, providers of all sizes are better equipped to appeal denied claims with unprecedented efficiency, accuracy, and ease."

Waystar has a decade-long track record of deploying AI pervasively across its software platform to address administrative waste in healthcare. Building on this leadership position, Waystar now brings together its comprehensive AI capabilities under the Waystar AltitudeAI™ brand, enabling providers to achieve elevated productivity and precision in healthcare payments. Waystar AltitudeAI™ leverages insights from Waystar's extensive payments network, which facilitates over five billion annual transactions for approximately 50% of patients nationwide. AltitudeCreate™ is the latest groundbreaking generative AI innovation introduced within Waystar AltitudeAI™ to transform the claim denial workflow.

Waystar will discuss its AI and innovation efforts in greater detail at the J.P. Morgan Healthcare Conference, where Matt Hawkins will present on January 13, 2025, at 11:15 a.m. PT.

About Waystar
Waystar's mission-critical software is purpose-built to simplify healthcare payments so providers can prioritize patient care and optimize their financial performance. Waystar serves approximately 30,000 clients, representing over 1 million distinct providers, including 16 of 20 institutions on the U.S. News Best Hospitals Honor Roll. Waystar's enterprise-grade platform annually processes over 5 billion healthcare payment transactions, including over $1.2 trillion in annual gross claims and spanning approximately 50% of U.S. patients. Waystar strives to transform healthcare payments so providers can focus on what matters most: their patients and communities. Discover the way forward at waystar.com.

Investor Contact
Sandy Draper
investors@waystar.com

Media Contact
Kristin Lee
kristin.lee@waystar.com

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SOURCE Waystar

FAQ

What is Waystar's new AltitudeAI technology and how does it help healthcare providers?

Waystar AltitudeAI is a comprehensive AI system featuring AltitudeCreate, which automatically generates appeal letters for denied claims, helping healthcare providers recover payments more efficiently and accurately from over 450 million annually denied claims.

How much do hospitals currently spend on overturning denied claims according to WAY?

According to Waystar's announcement, hospitals and health systems spend $20 billion annually trying to overturn denied claims.

What percentage of healthcare claims are successfully overturned according to Waystar (WAY)?

According to Waystar, more than 50% of denied claims ultimately get overturned.

How many annual transactions does Waystar (WAY) process through its payment network?

Waystar processes over five billion annual transactions for approximately 50% of patients nationwide.

How much money is lost to administrative waste in US healthcare according to WAY?

According to Waystar, the U.S. healthcare system annually loses $350 billion to administrative waste.