Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
Annual prior auth labor cost
$27,144
Monthly prior auth labor cost
$2,262
Monthly cost with ePA tool
$1,336
Monthly savings from ePA tool
$926
Annual savings from ePA tool
$11,112
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How to use this
- 1Enter prior auth requests per month.
- 2Enter avg minutes per request (current process).
- 3Enter loaded staff hourly cost ($).
- 4Enter % of pas requiring appeal/follow-up (%).
- 5Enter additional minutes per follow-up.
- 6Enter avg minutes per request with epa tool.
- 7Enter monthly cost of epa tool ($).
- 8Read your annual prior auth labor cost on the right — it updates as you type.
- 9Hit Share to keep the scenario or send it to someone.
About this calculator
Prior authorization is one of the most time-consuming administrative burdens in medical practice, with AMA surveys reporting practices average roughly two full business days of physician and staff time per week on PA requests. This calculator multiplies your monthly PA volume by average minutes per request and loaded staff hourly cost to show the true labor cost of prior auth, then adds the opportunity cost of delayed or denied care that leads to rework or patient abandonment. It also estimates how much an electronic prior auth (ePA) tool could save if it cuts average handling time, which is the main lever available since PA volume itself is largely outside a practice's control.
Worked example
Using the values the calculator loads with:
Inputs
- Prior auth requests per month: 180
- Avg minutes per request (current process): 25
- Loaded staff hourly cost: 26 $
- % of PAs requiring appeal/follow-up: 20 %
- Additional minutes per follow-up: 20
- Avg minutes per request with ePA tool: 10
- Monthly cost of ePA tool: 400 $
Results
- Annual prior auth labor cost: $27,144
- Monthly prior auth labor cost: $2,262
- Monthly cost with ePA tool: $1,336
- Monthly savings from ePA tool: $926
- Annual savings from ePA tool: $11,112
What each field means
Inputs
- Prior auth requests per month
- The prior auth requests per month used in the calculation. Starts at 180 so you have a working example on load.
- Avg minutes per request (current process)
- The avg minutes per request (current process) used in the calculation. Starts at 25 so you have a working example on load.
- Loaded staff hourly cost ($)
- The loaded staff hourly cost used in the calculation, measured in $. Starts at 26 $ so you have a working example on load.
- % of PAs requiring appeal/follow-up (%)
- The % of pas requiring appeal/follow-up used in the calculation, measured in %. Starts at 20 % so you have a working example on load. Accepted range: 0–100 %.
- Additional minutes per follow-up
- The additional minutes per follow-up used in the calculation. Starts at 20 so you have a working example on load.
- Avg minutes per request with ePA tool
- The avg minutes per request with epa tool used in the calculation. Starts at 10 so you have a working example on load.
- Monthly cost of ePA tool ($)
- The monthly cost of epa tool used in the calculation, measured in $. Starts at 400 $ so you have a working example on load.
Results
- Annual prior auth labor cost
- Returned as a money amount in US dollars and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Monthly prior auth labor cost
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Monthly cost with ePA tool
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Monthly savings from ePA tool
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Annual savings from ePA tool
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
How much time does prior auth really take nationally?
The 2023 AMA Prior Authorization survey found physicians and staff spend an average of about 13 hours per physician per week across all PA requests, and roughly a third of physicians report having staff dedicated exclusively to prior authorization work.
Does electronic prior authorization (ePA) actually save time?
Yes, meaningfully — surveys of practices adopting ePA integrated into the EHR report handling time cutting by half or more per request compared to phone and fax-based processes, mainly by pre-populating clinical data and routing electronically instead of waiting on hold.
Which services trigger the most prior auth burden?
Advanced imaging (MRI, CT), specialty medications, and certain surgical procedures generate the highest PA volume and denial rates. If a specific payer or service line dominates your PA queue, targeting that relationship or drug class for ePA or peer-to-peer review first gives the fastest payback.
Should physicians do peer-to-peer reviews themselves or delegate?
Physicians should reserve peer-to-peer calls for genuinely complex denials since only a licensed provider can do them, but trained staff should handle the initial submission, documentation gathering, and routine follow-up to keep physician time focused on clinical work.
Accuracy and limitations
- Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
- Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
- This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.
Related tools
Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). Prior Authorization Labor Cost Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/prior-auth-labor-cost
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/prior-auth-labor-cost" target="_blank" rel="noopener">Prior Authorization Labor Cost Calculator — RevenueLab</a> (2026).</p>
Source: [Prior Authorization Labor Cost Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/prior-auth-labor-cost) (2026).