In my role as a customer success leader partnering closely with , I’ve witnessed a consistent pattern. The strategic move that makes the biggest difference is outsourcing and automating Revenue Cycle Management (RCM). A recent HFMA study found that 77% of hospitals say outsourcing RCM allows their internal teams to focus on strategic priorities rather than getting bogged down in tedious administrative work, ultimately improving patient care.
The hospitals that defy the odds and flourish aren’t always the biggest or most resource-rich. Instead, they’re the ones that take a proactive approach to optimizing their finances by partnering with experts to streamline and bolster their RCM.
Sweetwater Hospital Association is a prime example. By teaming up with RCM specialist TruBridge, the hospital dramatically improved billing collections and operational efficiency. This collaboration empowered leadership to zero in on delivering top-notch care instead of constantly putting out financial fires. The results speak for themselves:
- 26%+ increase in cash collections, from an average of $3.8M to $4.8M per month
- 14% reduction in AR days, from 63 to 54
- Improved claim to collect rate of just 13.1 days across all payers
Sweetwater’s success illustrates that outsourcing RCM isn’t an optional luxury – it’s a must-have for the viability and endurance of community healthcare.
When Should You Consider Outsourcing?
Financial strain is pervasive and unavoidable. TruBridge’s recent survey revealed that 80% of hospitals have had to modify their strategic plans in the last 18 months due to revenue shortfalls. These pressures and the unpredictability they create will only worsen if hospitals don’t take resolute action. Outsourcing RCM to a reliable partner provides financial stability and readies hospitals to face new challenges head-on, preserve their independence, and sustain their vital role serving their communities well into the future.
I advise hospitals to consider three key questions when assessing if outsourcing RCM is the right path forward:
1. Evaluate your financial performance and major obstacles.
Are inefficient billing, slow reimbursements, or frequent denials sapping your revenue? If so, outsourcing RCM could deliver much-needed consistency and streamlining to your financial operations. For example, Texas Institute for Surgery saw AR days drop 23% and average monthly cash collections rise 15%.
2. Assess administrative burdens and staff workloads.
Are your internal teams drowning in revenue cycle tasks, leading to burnout and less attention on patient care? If administrative overload is an issue, outsourcing can unburden staff to concentrate on top priorities. In Sweetwater’s case, they struggled to hire staff equipped to handle complex healthcare billing. Partnering with TruBridge drove immediate improvements in daily cashflow.
3. Determine the impact on independence and growth.
Is your hospital having a hard time staying competitive, or even weighing acquisition or closure due to financial instability? An RCM partner can provide the financial resilience to remain independent and support long-term growth. As Texas Institute CEO John Croley put it, “TruBridge has always stepped up in my moments of need.”
Ironically, working with countless rural and community hospitals over the years has shown me that the secret to staying independent isn’t necessarily doing everything independently. True independence stems from strategic collaboration, not isolation. Partnering with the right specialists can fortify a hospital’s ability to compete, sustain itself, and keep providing exceptional care to the community at large.
With escalating pressures and an unpredictable economic outlook, now is the time to take action and position your hospital to thrive. Ready to start building a brighter future today? Learn how TruBridge can help your hospital streamline RCM, maximize revenue, and solidify its independence.
