Revenue Cycle Management (RCM) is critical for hospitals to manage the patient’s bills from entering the hospital to reimbursement of claims. Professional medical billing companies help hospitals manage their RCM by improving the process of claims management, speeding up explanation of benefits (EOB) reconciliation, automating processes and by streamlining denial management. A recent survey conducted by Black Book Market Research found that 74% of struggling or financially stressed hospitals are now reprioritizing RCM over other initiatives such as population health, data analytics, physician practice acquisitions and recruitment, and patient engagement.
The survey was conducted among healthcare executives and front line users about their current technology and services partners and awards top-performing vendors based on performance based on 18 indicators of client experience, loyalty and customer satisfaction.
The survey was held among more than 6,000 financial and business operations leaders at health systems, as well as more than 5,600 physician practice and other care site leaders. Survey results indicated that struggling hospitals are pushing RCM to the top of their priority lists in the last quarter of 2017.
Other highlights of the survey include:
According to the respondents of this survey, health systems and hospitals may want to consider the top-ranked revenue cycle management vendors, as they have no choice but to evaluate and optimize their RCM solutions end-to-end. Respondents also noted that their organizations are seeking an outsourcing solution because of declining reimbursement rates and value-based care models.
Reports on Revenue Cycle Management Market Growth
According to the latest report by Data Bridge Market Research, the global revenue cycle management market that amounted to USD 51.6 billion in 2016, growing at a CAGR of 12.7% from 2017 to 2024, is expected to reach USD 133.6 billion by 2024. Physician’s offices have shown higher volume of implementation of revenue cycle management so far.
According to another report by TMR Research, one of the key drivers currently boosting the global revenue cycle management market is the growing demand by healthcare organizations for workflow optimization. As documentation and AR management processes are time consuming, hospitals and other institutions are looking towards providers like medical billing outsourcing companies for ways to streamline their revenue management processes and maintain accurate medical and financial records. Another important factor that is expected to increase the demand for RCM over the coming years is the introduction of regulatory reforms in regional healthcare industries, which will make the management of resources a more complex process.