Healthcare Providers Turn to Outsourcing for Revenue Cycle Management Amid Workforce Shortages
In an effort to enhance cash flow and improve patient care, healthcare providers are increasingly seeking reliable vendors to outsource their Revenue Cycle Management (RCM) services.
A study reveals that many providers are outsourcing RCM processes to address staffing shortages and financial challenges. According to PatientPay’s 2022 research, healthcare organizations are striving to balance financial goals by accelerating cash flow, reducing debt, and offering better payment options to patients.
Post-pandemic workforce shortages have further complicated patient collections, with nearly 63% of respondents reporting staffing deficits in their RCM departments. Looking ahead, providers plan to outsource patient collections and other RCM functions, with over 60% expecting to expand third-party patient financing in the next two years. Additionally, 31% of executives are exploring new financing solutions.
The push toward outsourcing is largely driven by the need to improve the patient experience. Only 42% of providers are satisfied with their current payment solutions, prompting a shift toward enhancing check-in and payment processes—often referred to as the “digital front end”—to offer a more seamless, retail-like experience.
Patient payments remain a high or moderate priority for all providers, with the biggest challenge being the selection of a vendor capable of accelerating cash flow and reducing outstanding balances. Nearly 70% of providers interested in outsourcing payment solutions prioritize exceptional customer service. However, despite investments in financial education and counseling, 59% of providers rate patient financial literacy as poor.
Beyond patient payments, providers are also outsourcing other RCM functions. While 22% of revenue cycle leaders manage inpatient services in-house, many outsource outpatient services, with anesthesiology, gastroenterology, and urology among the most commonly outsourced specialties.
Medical billing companies are also showing a growing interest in RCM outsourcing. A recent survey found that 43% of companies view outsourcing as an opportunity to leverage technology, optimize services, boost revenue, and reduce repetitive tasks—up from 27% in 2018. This trend highlights the increasing reliance on outsourcing as a strategic approach to financial and operational efficiency in healthcare.