From the Desk of CEO Image

Is it time for more pediatric billing transparency in vaccine costs?

Writer: Hemant Apte, Chief Executive Officer

Parental skepticism of pediatric vaccines is growing. One of the reasons is that some parents question the profit motive of pharmaceutical companies [1], leaving pediatricians caught in the middle. Anyone familiar with pediatric billing and coding knows the truth – there’s little money for physicians to make in pediatric vaccines. In reality, physicians often lose money when protecting the health of children. 

Take the HPV vaccine, for example. A 2023 study found that net returns were as low as $0.34/dose for family physicians and at their highest, only reached $5.08/dose for pediatricians [2]. These are not rates that drive doctors to vaccinate children unnecessarily. Some physicians even lose money on their vaccine programs. A Virginia pediatrician recently reported to MedCity News that he spends about half a million dollars every year on vaccines, and possibly isn’t even breaking even [3]. 

Vaccines are the second-highest expense for pediatric practices, coming in second only to staff salaries. In addition to the effort of getting reimbursed for vaccines through pediatric medical billing, many physicians are simply absorbing the costs and risks just to maintain their childhood vaccination programs. 

Turning Pediatric Billing Hesitancy Into an Asset

While there is a need for multiple types of education to address parental vaccine hesitancy, pediatric billing leaders could have an opportunity to add their voice to the discussion. Transparency in billing and creativity in pediatric billing communications can be a first step in not only helping parents and guardians make informed decisions about vaccination but also function as a powerful tool in building trust and sparking a deeper conversation about children’s health. 

Improved communication and awareness are especially important this flu season, where pediatric flu deaths have reached their highest rate since the 2009-10 H1N1 pandemic [4]. More children are presenting with conditions associated with the flu, like acute necrotizing encephalopathy (ANE). At the same time, hesitancy is as high as 56% for COVID vaccines and 12% for routine childhood vaccinations [5]. 

The American Academy of Pediatrics offers some guidance on talking with vaccine hesitant parents [6]. Use these as a starting point and guide rails for educating parents on the lack of profitability in pediatric vaccines for providers. 

To learn more about how you can bring your pediatric billing strategy up to date with current challenges or how to strengthen your pediatric billing and coding workflows, feel free to message me here, or connect with one of our experienced team members.

References

[1] U. Uğrak, A. Aksungur, S. Akyüz, H. Şen and F. Seyhan, “Understanding the rise of vaccine refusal: perceptions, fears, and influences,” BMC Public Health, 29 July 2025. Available: https://pmc.ncbi.nlm.nih.gov/articles/PMC12306073/.
[2] Y. Zhu, Y.-Y. Lin, R. Li, C. He, D. R. Lairson, A. A. Deshmukh and K. Sonawane, “Reimbursement for HPV Vaccine Cost in the Private Sector: A Comparison Across Specialties,” Ann Fam Med, Jul-Aug 2023. Available: https://pmc.ncbi.nlm.nih.gov/articles/PMC10365861/.
[3] P. Sánchez de Lozada, “Pediatricians Subsidize the Vaccinations That Keep Kids Healthy and Prevent Pandemics. They Shouldn’t Have To,” MedCity News, 10 August 2025. Available: https://medcitynews.com/2025/08/pediatricians-subsidize-the-vaccinations-that-keep-kids-healthy-and-prevent-pandemics-they-shouldnt-have-to/.
[4] E. Edwards, “More kids are severely ill or dying from the flu, CDC reports,” NBC News, 25 September 2025. Available: https://www.nbcnews.com/health/health-news/flu-vaccines-children-complication-cdc-deaths-rcna233436.
[5] J. Wappes, “CDC analysis shows high rate of parental hesitation toward kids’ vaccinations,” CIDRAP – Center for Infectious Disease Research & Policy, 17 July 2024. Available: https://www.cidrap.umn.edu/childhood-vaccines/cdc-analysis-shows-high-rate-parental-hesitation-toward-kids-vaccinations.
[6] American Academy of Pediatrics, “Talking with Vaccine Hesitant Parents,” 9 October 2025. Available: https://www.aap.org/en/patient-care/immunizations/communicating-with-families-and-promoting-vaccine-confidence/talking-with-vaccine-hesitant-parents/?srsltid=AfmBOoq1xtyeMH9IyvlwnZwVv9OJLQGlgegBy5m2im8Q_Aa7FI6h6umY.

 

Hemant Apte, Chief Executive Officer in

Hemant Apte, Founder & Chief Executive Officer of 3Gen Consulting, is a seasoned executive leader with deep domain expertise in US healthcare management practices. He founded 3Gen Consulting in 2006 and has been instrumental in offering thought leadership to his clients and providing services and solutions that are unique in the market.

September 2025 AI in Healthcare Revenue Cycle- The Big Opportunity in Medical Billing Accounts Receivable

AI in Healthcare Revenue Cycle: The Big Opportunity in Medical Billing Accounts Receivable

A recent HFMA study shows that hospital CFOs see revenue cycle – especially medical billing accounts receivable and denials management – as the biggest area of opportunity for AI [1]. This raises a key question: what do revenue cycle leaders need to do to prepare? Considering the complexity of AI technology, choosing a good partner with “pre-AI” revenue cycle expertise is

August 2025 AI Won’t Replace Your Coders…Here’s Why You Need it Anyway

AI Won’t Replace Your Coders…Here’s Why You Need it Anyway

Physicians have expressed concern over payers using artificial intelligence automation, and with good reason. The AMA reports that AI tools contribute to a dizzying increase in denial rates – up to 16 times the norm [1]. So it’s only logical that many providers are looking for ways to “fight AI with AI”, especially in the area of risk adjustment services for U.S. healthcare organizations. 

Medical risk coding risk adjustment in healthcare is an excellent use case for AI solutions. When well trained, these models can improve coding accuracy – they stay on top of guidelines to support compliant coding practices, even identifying risk adjusted codes in both unstructured and structured text. It’s a huge potential benefit in supporting complete code capture. At the same time, it can grant leadership increased visibility through improved reporting and project management support – critical for effective medical coding risk adjustment operations. 

Looking at the range of potential benefits that AI offers in enhancing risk adjustment services, many leaders see an opportunity (or threat) as a replacement for human coders. This is a misguided way of looking at the technology. It’s critical to remember that, even though the work of coding is heavily numerical and structured, the complexity of medical records and the variation in documentation styles of clinicians means that a human touch is still needed. Even the best-trained AI cannot fully understand a medical record the way a certified coder can. 

This means that leaders looking for options to implement AI in risk adjustment in healthcare should move away from either-or thinking, instead taking a both-and approach to how they implement AI and human coders. This is the spirit we’ve leaned into when developing RiskGen-i our AI-powered platform for the nuances of HCC medical coding risk adjustment management. Built to complement the efforts of certified coders, this platform is an ideal solution for leaders who want to do more with the coding resources they have.

And for organizations seeking a fully human-led model, our RiskGen-Core platform delivers the same high standards of accuracy, compliance, and productivity – without AI assistance.

We invite U.S. healthcare leaders to explore how RiskGen-i and RiskGen-Core can help transform your risk adjustment services – boosting compliance, accuracy, and efficiency in today’s challenging reimbursement landscape. 

References
[1] American Medical Association, “Physicians concerned AI increases prior authorization denials,” 24 February 2025. Available: https://www.ama-assn.org/press-center/ama-press-releases/physicians-concerned-ai-increases-prior-authorization-denials.

Hemant Apte, Chief Executive Officer in

Hemant Apte, Founder & Chief Executive Officer of 3Gen Consulting, is a seasoned executive leader with deep domain expertise in US healthcare management practices. He founded 3Gen Consulting in 2006 and has been instrumental in offering thought leadership to his clients and providing services and solutions that are unique in the market.

1 2 3 7
Get In Touch!
close slider

    Get In Touch!