A new study projects that the market for revenue cycle management in U.S. hospitals will grow substantially over the next 5 years. In U.S. Hospital Revenue Cycle Management: Overview and Outlook, 2012-2017, from Frost & Sullivan, analysts state that most hospitals have long deployed automated systems to address core processes around revenue cycle management (RCM).
However, these legacy IT applications often have outmoded technology platforms that lack the advanced functionality needed to address new models of care delivery and reimbursement. In addition, the complexity of medical billing and collections has created fragmented workflows across the patient accounts pathway, resulting in gaps and inefficiencies that lead to lost revenue.
From the valuation of $1.90 billion in 2012, the total U.S. hospital RCM market is forecast to reach $3.07 billion in 2017, representing a 61.6 percent increase from 2012. The majority of revenues will come from replacements and/or updates of legacy RCM systems, in addition to an increased use of managed services and consultants that provide niche services around specific RCM pain points.