--- title: Unlocking Efficiency in Revenue Cycle Management description: Discover top strategies to address RCM challenges in healthcare, including cost control, staffing, and compliance. Learn how outsourcing can enhance efficiency. image: https://pages.flatworldsolutions.com/hubfs/Unlocking%20Efficiency%20(1).webp --- [Skip to main content](https://pages.flatworldsolutions.com/blog/addressing-rcm-challenges-with-industry-insights#main) [![fws-logo-2](https://pages.flatworldsolutions.com/hs-fs/hubfs/fws-logo-2.webp?width=186&height=50&name=fws-logo-2.webp) ![fws-logo-2](https://pages.flatworldsolutions.com/hs-fs/hubfs/fws-logo-2.webp?width=186&height=50&name=fws-logo-2.webp) ![fws-logo-2](https://pages.flatworldsolutions.com/hs-fs/hubfs/fws-logo-2.webp?width=186&height=50&name=fws-logo-2.webp) ![fws-logo-2](https://pages.flatworldsolutions.com/hs-fs/hubfs/fws-logo-2.webp?width=186&height=50&name=fws-logo-2.webp)](https://pages.flatworldsolutions.com/) [![](https://pages.flatworldsolutions.com/hubfs/header-cta.png)](https://pages.flatworldsolutions.com/rcm-research-report) Open main navigation Close main navigation - Search Search ![](https://pages.flatworldsolutions.com/hubfs/Unlocking%20Efficiency%20(1).webp) Story by [Flatworldsolutions](https://pages.flatworldsolutions.com/blog/author/flatworldsolutions) # Unlocking Efficiency: Addressing RCM Challenges with Industry Insights Discover top strategies to address RCM challenges in healthcare, including cost control, staffing, and compliance. Learn how outsourcing can enhance efficiency. Not long ago, revenue cycle management (RCM) was a standard backroom function that involved getting back what patients owed you. Yet, as the industry underwent tectonic shifts, what also shifted was the very essence of the role RCM plays in healthcare operations. Today's healthcare landscape is a minefield of rising costs, productivity sinkholes, and compliance red flags. Staying ahead of the curve means having a keen understanding of industry benchmarks and a strategic approach to addressing key challenges. We’re looking at the three most prevalent challenges currently shaping the healthcare world, for better or worse. ## Industry Insight #1 *The average cost to collect for hospitals in the USA has increased to 3.3% of net patient revenue –*[*Advisory Board*](https://www.advisory.com/content/dam/advisory/en/public/shared/Research/FLC/Resources/2019/Examining_2019_Revenue_Cycle_Benchmarking_Results.pdf)*, Hospital Revenue Cycle Benchmarking Survey.* Despite the optimism about financial performance, rising operational costs remain a significant concern for hospitals. Labor expenses have escalated by a staggering 258% in just three years, forcing a 500-bed hospital to absorb an additional $17 million annually, according to data published by[Syntellis and the American Hospital Association](https://www.syntellis.com/sites/default/files/2023-03/AHA%20Q2_Feb%202023.pdf). Contract and employed labor were identified as the most considerable unforeseen costs of 2023, and reining these costs is a top priority for 55% of healthcare leaders in 2024. **Strategic Insight:** Implement advanced analytics and AI-driven revenue optimization strategies to identify leakage points and streamline operations, bringing your cost-to-collect ratio in line with industry leaders. ## Industry Insight #2 *63% of providers are dealing with revenue cycle staffing shortages.-*[*Becker’s Hospital Review*](https://www.beckershospitalreview.com/capital/63-of-providers-dealing-with-rcm-staffing-shortages-study-says.html) McKinsey reports a [50% increase in monthly resignations since 2020](https://www.mckinsey.com/industries/healthcare/our-insights/how-health-systems-and-educators-can-work-to-close-the-talent-gap), depleting valuable human resources. The remaining staff needs help with accuracy, as Becker's Hospital Review exposes that [86% of claim denials are potentially avoidable](https://www.beckershospitalreview.com/finance/86-of-denials-are-potentially-avoidable-strategies-to-better-prevent-manage-denials.html), directly impacting revenue. Resistance to change further creates a formidable barrier to implementing crucial RCM improvements. **Strategic Insight**: Invest in staff training and process automation to bridge the productivity gap. Without the right expertise, redesigning your RCM workflow is complex, tedious, and prone to failure. ### Industry Insight #3 *45% of patient medical records contain poor-quality documentation –*[*AGS Health*](https://www.agshealth.com/blog/a-look-at-the-top-clinical-documentation-integrity-trends-from-2021/) The adoption of telehealth and EHRs, while promising efficiency gains, has introduced new compliance challenges that demand 24/7 monitoring and management. For your organization, HIPAA compliance is a moving target with a $50,000 penalty per incident. Can your budget accommodate these penalties? And to top it all off, healthcare faces some of the costliest data breaches in the world. According to an IBM report, [healthcare breaches cost USD 10.93 million](https://www.ibm.com/reports/data-breach), more than double the average cost of all data breaches across industries! Strategic Insight: Implement robust compliance management systems and consider partnering with RCM specialists who stay abreast of regulatory changes, ensuring your organization meets or exceeds the 98% accuracy benchmark. **The Power of Strategic Outsourcing** So, amid all this, what do you need in your RCM? - An effective denial management strategy that streamlines all your claims and drastically decreases your denial rate. - No errors in billing & coding through phased automation and correct implementation of AI & ML technologies - Best-in-class data security tools for PHI and all your other sensitive data - Complete up-to-date adherence to all healthcare regulations - A practical customer service component that keeps patient satisfaction high You could aim to create this environment in-house, yet the favorable option for most organizations is outsourcing their RCM operations. Approximately 61% of providers plan to outsource RCM tasks in the future. This is because of the benefits of choosing the right MSP, like improved cash flow management, lower costs, and access to specialized expertise. If these are some of the things you’re looking for in an RCM partner, the first thing you should be doing is getting in touch with us [here](https://www.flatworldedge.com/contact-us.php). [![](https://pages.flatworldsolutions.com/hubfs/footer-cta.png)](https://pages.flatworldsolutions.com/rcm-research-report) ### You May Also Like ##### [![Healthcare Finance: Addressing C-Suite’s Pain Points with Effective KPIs](https://pages.flatworldsolutions.com/hs-fs/hubfs/Healthcare%20Finance%20(1).webp?width=520&height=294&name=Healthcare%20Finance%20(1).webp) Jul 2, 2024, 7:30:49 AM Healthcare Finance: Addressing C-Suite’s Pain Points with Effective KPIs Read More](https://pages.flatworldsolutions.com/blog/addressing-c-suites-pain-points-with-effective-kpis) ##### [![Data-Driven Decisions: Leveraging Statistics to Optimize Healthcare RCM](https://pages.flatworldsolutions.com/hs-fs/hubfs/Data-Driven%20Decisions1.webp?width=520&height=294&name=Data-Driven%20Decisions1.webp) Jul 2, 2024, 7:26:48 AM Data-Driven Decisions: Leveraging Statistics to Optimize Healthcare RCM Read More](https://pages.flatworldsolutions.com/blog/leveraging-statistics-to-optimize-healthcare-rcm) ### Contact Us [![](https://pages.flatworldsolutions.com/hubfs/sidebar-cta.png)](https://pages.flatworldsolutions.com/rcm-research-report) #### USA **Flatworld Solutions** 116 Village Blvd, Suite 200, Princeton, NJ 08540 #### Quick Links - [Terms of Use](https://www.flatworldsolutions.com/terms-of-use.php) - [Privacy Statement](https://www.flatworldsolutions.com/privacy.php) - [Contact Us](https://pages.flatworldsolutions.com/contact-us) #### Follow Us - [![linkedin-round-svgrepo-com](https://pages.flatworldsolutions.com/hubfs/linkedin-round-svgrepo-com.svg)](https://www.linkedin.com/company/flatworld-solutions) - [![facebook-round-svgrepo-com (1)](https://pages.flatworldsolutions.com/hubfs/facebook-round-svgrepo-com%20(1).svg)](https://www.facebook.com/FlatworldSolution) - [![twitter-x-logo-black-round-20851 (1)](https://pages.flatworldsolutions.com/hubfs/twitter-x-logo-black-round-20851%20(1).svg)](https://twitter.com/flatworldsols) --- ©2026 Flatworld Solutions Inc. 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