5 Revenue Cycle Takeaways from R1 RCM's Mid-Year Trends Report

Over 200 CFOs and VPs of revenue cycle were surveyed on top concerns facing health systems and physician groups.

The financial challenges of the COVID-19 pandemic are still being felt across the healthcare industry and revenue cycle management (RCM) departments are no exception.

Between increasing costs and the labor shortage, providers are under pressure to come up with solutions in real-time to reduce the burden of administrative processes for not only their own sake, but for patients as well.

For its Mid-Year Healthcare Financial Trends Report, revenue management company R1 RCM surveyed 205 CFOs and RCM VPs from health systems and physician groups to gauge today's top priorities, concerns, and trends for RCM.

Increasing costs were identified as the top concern for respondents (25%), while finding a strategic RCM partner was chosen as the top solution for the second half of 2022 (28%).

Here are five key takeaways from the report:

1. Economic pressures from returning patients: 96% strongly agree there is, or will be, additional strain on RCM operations as patient volume increases.
    
2. Labor shortage: 90% are currently experiencing a labor shortage in their RCM/billing department, while 50% of their RCM/billing roles are currently vacant.
    
3. Need for automation: 45% say patients are experiencing longer hold times for scheduling and customer service calls. Additionally, 48% have witnessed billing errors due to lack of experienced staff for coding, claims, and reimbursement.
    
4. Choosing a partner: 44% are partnering with a strategic RCM company that specializes in an outcomes-focused approach to optimizing the entire revenue cycle. More than half (52%) report experiencing positive financial outcomes through their RCM partnerships.
   
   Related: 4 Reasons Health Systems Pursue Revenue Cycle Partnerships
    
5. Benefits of global delivery: 82% say their sentiment toward global delivery has become more favorable in the face of today's labor shortage.
    

To continue overcoming the obstacles at hand, as well as the challenges coming down the road, RCM departments will have to adjust their strategies to be more efficient and effective.

"The financial difficulties the healthcare industry is facing are driving a need for both digital and cultural transformation, which will lead to better outcomes for both staff and patients alike," Todd Craghead, SVP of Commercial Relationships at R1 RCM, said in the report.

"The best way for health systems and physician groups to address these challenges is to focus on optimizing in every way they can: investing in people, processes and technology, and embracing an open mind regarding partnerships, employee reallocation and global delivery."