Healthcare companies, and specifically the revenue management functions within them, have been among the earliest business areas to understand the impact that intelligent automation can have on operational efficiency and cost. A report detailing the results of a new survey has confirmed the need for healthcare to implement AI, automation and managed services to continue improving their revenue cycle performance.
Guidehouse, a global consultancy acquired by Bain Capital nearly a year ago, identified AI and automation as next year’s highest investment priorities for healthcare organizations in its 2024 Revenue Cycle Management Report. CFOs and other health care revenue executives polled in the report say they will lean on automation to help with their top challenges: a net collection yield of just 93 percent and revenue cycle workforce shortages, which 90 percent of execs noted as an exacerbating factor.
“Roughly 40 percent of respondents reported struggling with elevated fatal denial rates, with more than half dealing with elevated Medicare Advantage denial rates,” said Timothy Kinney, Guidehouse partner and Finance and Revenue Cycle Advisory leader. “Many payers have increased requirements for prior authorizations, leading to more denials and increased cost to collect due to appeal activities. In the face of these pressures, industry leaders are turning to digital solutions and supplemental staffing to better navigate payer processes, maximize reimbursement, and boost returns.”
Download the entire report here.
