Revenue Cycle Management M&A Update

Increased margin pressures and administrative burdens on providers have increased reliance on RCM services, especially end-to-end management and full outsourcing capabilities.

• Today, healthcare providers are facing intense financial pressure, hospitals continue to see declining operating margins and out-of-pocket patient payments are expected to surge from $471.5 billion in 2022 to $781.9 billion by 2033, a 66% increase over just a decade.⁽¹⁾
• These challenges are compounded by rising costs, regulatory changes, and staffing shortages. In response, the RCM sector is transforming rapidly, helping organizations navigate these pressures by streamlining billing, automating claims processing, and reducing denial rates, leading to improved cash flow, higher collections, and greater operational efficiency. 
• Advanced RCM solutions, especially those powered by AI and automation, enable providers to optimize reimbursement, minimize administrative burdens, and maintain financial stability in a rapidly changing environment.
• Additionally, predictive analytics and machine learning models are enabling proactive identification of underpayments and coding errors, and robotic process automation is streamlining repetitive tasks such as eligibility verification and payment posting.