There are four key technology trends that revenue cycle leaders are prioritizing to boost efficiency, strengthen vendor management, and support staff transformation.
As hospitals and health systems face increasing financial pressure, revenue cycle leaders are doubling down on advanced technology to streamline operations, increase payment efficiency, and navigate workforce challenges—but they can’t do it alone.
HealthLeaders' upcoming RevTech Exchange, from November 11-13, 2024, in Nashville, is bringing these leaders together to discuss the latest trends reshaping revenue cycle technology with hands-on discussions led by industry innovators from organizations like Stanford Healthcare and WVU Medicine.
So, what are rev cycle leaders actually spotlighting? Let’s dive into the four technology trends that revenue cycle leaders are prioritizing—and why they matter now more than ever.
Strengthening Vendor Contracts
In today’s complex healthcare landscape, effective vendor management has become essential for revenue cycle success. As organizations increasingly depend on vendors for crucial automation, AI-driven tools, and data analytics, clear, well-structured contracts and accountability metrics are critical.
Leaders are recognizing the importance of establishing precise service-level agreements that define performance expectations, timelines, and accountability measures to protect against issues like service disruptions and cyberattacks.
“If we’re not able to implement [it] on time, and it’s because [the vendor’s] team wasn’t ready to go, then maybe our first payment doesn’t start till six weeks later than we planned,” Shannan Bolton, vice president of revenue cycle optimization for Stanford Health, and RevTech attendee explained. “These are the commitments that I’m going to build into those service line agreements.”
Building robust vendor partnerships with clearly defined standards and proactive communication ensures that external solutions genuinely support operational goals, helping to prevent dependency or service shortfalls.
Building Proactive Operations
AI and automation are reshaping revenue cycle operations, pushing organizations to shift from reactive problem-solving to proactive operational strategies.
“[Let’s say] there’s a tool that we have in place, but its [performance] is stagnant. I’m looking for continuous optimization,” Bolton said. “So, I’d look at it holistically: What are they offering or doing for other organizations that our current vendor hasn’t thought of or isn’t moving towards even if the changes are small or in a focused area.”
Pictured: Revenue cycle leaders talk shop at our spring 2024 Revenue Cycle Exchange.
On top of this though, the complexity of implementing AI solutions requires careful planning around governance, decision-making, and collaboration between departments like IT and operations.
Defining governance structures and identifying which teams will drive technological initiatives are critical in aligning AI efforts with organizational goals.
Leaders are increasingly focusing on creating seamless integrations with platforms such as Epic, which enables staff to operate "at the top of their licenses," ensuring that AI and automation solutions bring measurable, sustainable value to the revenue cycle.
Identifying New Opportunities to Improve Efficiency
AI’s potential to streamline workflows and improve payment accuracy is significant, yet identifying high-impact opportunities is essential for success.
Revenue cycle leaders are increasingly using AI to address targeted processes, such as enhancing first-pass claim approval rates and automating account management to reduce manual burdens.
On top of this, a common misconception around AI is that it is self-sufficient once implemented, but there are limitations to the technology which require oversight. For example, Bolton notes that most AI solutions manage simpler tasks, but not middle revenue cycle tasks that require more detail and clinical knowledge.
“That space becomes more complex, and the rules can change often by payer, location, or specialty,” she said.
Technology managing the simpler, repetitive tasks leave staff available to handle more complex tasks, like denials management. However, you can’t successfully implement a new solution without staff support, and leaders must be open and transparent in their conversations and messaging.
“We want our staff to continuously perform at the top of their scale.” Bolton said. “This means proactively developing the staff to upskill them once we bring in AI to perform that more simplistic work.”
When applied thoughtfully, these AI-driven improvements not only boost cash flow but also allow teams to focus on more complex tasks, ultimately contributing to a smoother, more positive patient experience.
Supporting and Preparing Staff
Speaking of staff, as technology transforms revenue cycle processes, it is critical to ensure that employees are supported through this transition.
Automation and AI bring new opportunities, but they also shift traditional roles, making change management a key consideration for revenue cycle leaders.
Encouraging staff to embrace evolving responsibilities and highlighting career development rather than workforce reductions can create a culture of adaptability.
Leaders are focusing on communicating the benefits of these technological changes and holding managers accountable for making full use of new tools.
“From a humanity standpoint, it’s so important,” Bolton said. “Making sure that the staff know we have their best interests at heart, that we’re going to develop you, support your career development, even if that means it’s not in this organization.”
With a well-structured approach, organizations can harness technology to optimize revenue cycle processes while fostering growth and resilience among their teams.
The HealthLeaders Exchange is an exclusive, executive community for sharing ideas, solutions, and insights. Please join the community at our LinkedIn page.
To inquire about attending a HealthLeaders Revenue Cycle Exchange event and becoming a member, email us at exchange@healthleadersmedia.com.
Amanda Norris is the Director of Content for HealthLeaders.
KEY TAKEAWAYS
Strong vendor contracts with clear accountability metrics are essential for ensuring consistent, reliable digital support in revenue cycle operations.
Rev cycle leaders are prioritizing AI and automation to streamline workflows, prevent issues, and enhance overall operational efficiency.
Effective change management and clear communication are crucial to help staff adapt to evolving roles and fully leverage new technologies.