TransLabs Introduces Proprietary Laboratory Claims Denial Index to Help Labs Reduce Revenue Loss

As claim denials become a structural drag on laboratory margins nationwide, TransLabs introduces a new benchmarking framework designed to help labs measure, predict, and prevent denial-driven revenue loss.

Sachse, TX – October 26, 2026 – TransLabs, a company that provides exclusive lab billing and coding services to clinical, reference, and molecular diagnostic laboratories, today announced the release of the Laboratory Claims Denial Index (LCDI), a new whitepaper and benchmarking framework built to help laboratories measure denial performance beyond a single headline percentage.

Drawing more than a decade of laboratory billing experience and cross-referenced against industry benchmarking literature from organizations including HFMA and MGMA, the Index breaks denial performance into five measurable components: denial rate, recovery rate, average days to resolve, cost to collect, and preventable denial ratio. Rather than tracking one number that can mask where revenue is actually being lost, the framework gives lab leaders a way to isolate the specific part of their revenue cycle causing the leak.

“Most labs know their denial rate, but almost none of them comprehend the ramifications or the costs entailed to rectify them. That’s the gap we built the Index to close. It gives lab leadership a shared language for talking about denial performance that goes beyond a single percentage on a dashboard,” said Oscar Shelby, Sr. RCM Consultant at TransLabs.

The whitepaper identifies five recurring denial pressure points across clinical, hospital-based, and molecular laboratories: eligibility and registration failures, prior authorization and medical necessity issues, coding and bundling errors, documentation and order mismatches, and payer-specific administrative denials. According to the framework, best-in-class laboratories typically maintain denial rates below 5% with recovery rates above 90%, while labs in the industry average tier run denial rates of 8 to 12% with meaningfully lower recovery.

“The labs sitting at Industry average don’t need a complete overhaul. They need to know which of the five pillars to fix first. That’s what this framework is designed to show them, a clear starting point instead of guesswork,” said Kevin Peterson, VP Sales of TransLabs.

The Index pairs its measurement framework with a five-pillar operating model, covering front-end verification automation, coding and CDI governance, payer intelligence and edit libraries, root-cause denial analytics, and structured appeals and recovery, designed to move a laboratory from industry average toward best-in-class performance one pillar at a time.

TransLabs said the full whitepaper is now available for laboratories to benchmark their own denial performance, and the firm is offering a complimentary Denial Index scorecard consultation to labs interested in applying the framework to their own data.

About TransLabs

TransLabs is the nation’s leading laboratory billing and RCM company, built exclusively for clinical labs. Unlike generalist billing firms, we specialize solely in laboratory RCM, serving clinical, pathology, molecular diagnostic, toxicology, cytogenetics, genomics, and specialty labs nationwide. With a compliance-first approach, advanced automation, and dedicated account management, we help labs capture every dollar and eliminate revenue leakage generalists miss. We partner with labs of every size, from community hospital labs to large reference facilities, without workflow disruption. 

For more information, visit www.translabsbilling.com.

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