Cost Cutter: Hidden RCM Outsourcing Gains

May 5, 2024

The hidden gains of RCM outsourcing are substantial, particularly in staffing and IT costs. Healthcare organizations report an average 40% reduction in administrative staffing needs related to RCM functions. For a 200-bed hospital, this typically translates to a decrease from 50 full-time employees to 30, resulting in annual savings of approximately $1.5 million in salaries and benefits.The decrease in IT infrastructure spending is equally significant. Hospitals partnering with RCM outsourcing firms report an average 60% reduction in RCM-related IT expenses. This includes savings on hardware, software licenses, and maintenance costs. For a mid-sized healthcare system, this can amount to $2 million in annual IT cost savings.Over a 5-year period, these hidden gains compound significantly. Healthcare organizations report cumulative savings of $17.5 million in administrative staffing and $10 million in IT infrastructure. Additionally, 85% of hospitals reallocate these savings to patient care initiatives, investing an average of $5 million in new medical technologies and services. The ripple effect extends to improved efficiency, with 92% of organizations reporting a 30% increase in overall RCM productivity, processing an additional 10,000 claims per month without increasing staff.

Published On: May 5, 2024Categories: Insights172 wordsViews: 91