Revenue Cycle Outsourcing and Vendor ROI

by | Nov 10, 2020

The playbook for healthcare revenue cycle vendor management

Hospitals across the country are facing financial pressures as never before. Self-pay patients, value-based care, and administrative burdens have significantly increased the risk of bad debt write-offs, stagnant cash flow, and crippling margin erosion. The true cost to collect has increased 71%. To help protect their revenue stream, many hospitals are turning to outsourcing vendors. Today, nearly a third of hospitals employ between ten and 15 vendors, with the largest majority spending between 21 – 30% of their budget on those partnerships. While this can be a viable approach, the value these relationships deliver often falls short of expectations. Recent reports say 64% of hospitals report being unsatisfied or unsure of their vendors’ performance. With $30 billion spent on revenue cycle vendors each year, one must ask how hospitals can afford to continue in these relationships without proof of return on investment.



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