How Hospital Leaders Are Tackling Revenue Cycle Challenges

Survey insights revealing how hospitals are strengthening revenue cycle performance for long-term success.

Hospitals across the country are navigating increasing financial pressures while striving to deliver high-quality patient care and maintain independence. To better understand how healthcare leaders are approaching revenue cycle management (RCM) in this environment, TruBridge partnered with HealthLeaders to survey nearly 100 executives and senior leaders from community hospitals.

The findings reveal that while automation technology remains a critical tool, a growing number of hospitals recognize that technology alone is not enough. Many are exploring or adopting a blended strategy that combines automation with expert outsourcing partnerships to drive sustainable financial performance.

This whitepaper explores how forward-thinking hospitals are reshaping their revenue cycle strategies — not simply to cut costs, but to build stronger foundations for clinical excellence, financial growth, and long-term community service.

Revenue shortfalls and other persistent financial issues are motivating hospital leaders to take a hard look at how they approach revenue cycle management (RCM) — and it isn’t just about implementing the latest automation technologies.

Navigating hospital operations under an unpredictable healthcare landscape is nothing new for community hospital leaders. Additionally, finding the balance between patient care and financial stability is a tale as old as time. What is new is the way these scenarios can be solved, and the wide range of technology and resources available, leaving many leaders asking, ‘Which direction should we take to improve our revenue cycle management operations?”

Earlier this year TruBridge partnered with HealthLeaders on a survey to uncover these answers. With nearly 100 participants from
the HealthLeaders Council and HealthLeaders audience, TruBridge was able to gather insights from CEOs and members in financial and
operational leadership roles (e.g., CFO, VP of Finance, COO, Chief Strategy Officer). on how community hospitals are approaching their RCM in 2025 and beyond.

Automation technology has been widely viewed as the key to making RCM more efficient and less prone to errors. But that view is changing. Solving today’s increasingly complex and pervasive RCM issues requires a level of expertise that many rural and community hospitals may not have on staff, or have access to hiring.

Healthcare organizations recognize that traditional approaches to revenue cycle management can no longer keep up with today’s challenges.

This trend suggests that leaders are no longer choosing between technology or outsourcing. Instead, they’re embracing a blended approach to drive faster, more sustainable financial results. Now is the time for hospitals to evaluate how technology and strategic partnerships can work together to transform RCM performance.

It’s important to note that outsourcing does not mean abandoning the implementation of automation technology altogether. In most instances, these “hospitals are blending budget-friendly investments in technology with partnerships that provide access to proven RCM expertise and services. Outsourcing doesn’t have to be an “all or nothing” decision, either.”

Why is RCM outsourcing attracting so much attention from hospital leaders? Quite simply, hospitals have discovered that outsourcing empowers them to manage their revenue cycle more proactively rather than reacting to problems as they arise.

While swift response is essential to maintaining operational flow, proactive prevention and long-term strategy are equally important for achieving sustainable revenue cycle performance.

Embracing a proactive approach to RCM enables hospitals to stop fixating on problems, such as revenue leakage, and start focusing on strategies to boost their bottom line. Improved financial health, in turn, allows hospitals to make investments that enhance operations, staffing, infrastructure, and patient care, while promoting long-term success as an independent organization.

A significant majority (77%) of survey respondents indicated that their hospital addresses revenue cycle issues in an “extremely” or “very” timely manner.

The optimal outsourcing arrangement gives hospitals access to seasoned RCM experts and services supported by leading-edge automation
technology, but without the huge expense of making these investments on their own.

Essentially, outsourcing to the right partner streamlines and automates essential functions, such as coding, billing, contract management, claims processing, and denial management. By reducing errors and expediting processes, the proven combination of outsourced RCM expertise and services will deliver:

Aside from the direct financial benefits, RCM outsourcing removes a huge burden from internal staff, enabling them to focus on high-value work, especially the delivery of excellent patient care. In fact, 77% of hospitals reported improved patient care when their teams were freed from administrative tasks and able to concentrate on core responsibilities, according to a recent HFMA study

To fully realize the benefits of RCM outsourcing, rural and community hospitals must thoroughly vet potential partners and base their choice on proven criteria, which include:

Capabilities and areas of expertise

While it’s important for the partner to use proven automation technology, hands-on experience in managing financial performance is just as crucial. The most competent partners will be able to handle a full range of RCM functions. In addition, they’ll give their client hospitals the flexibility to choose the services that address their specific gaps and needs.

Synergy with internal teams

The ideal RCM partner will function as a natural extension of — not a replacement for — the hospital’s in-house team. This partner will be willing and able to work seamlessly with internal staff and communicate effectively with hospital leadership, finance teams, and frontline employees. The partner should also share accountability for financial outcomes.

Proven performance track record

In other words, the prospective partner can demonstrate measurable financial improvements on behalf of their clients. To get there, the partner must possess a deep understanding of each hospital’s unique financial and operational challenges and then customize a solution to that profile.

Revenue cycle challenges have had a profound impact on rural and community hospitals, which is reflected in the survey: 87% of respondents said that revenue shortfalls have necessitated changes to their hospitals’ strategic plans over the past two years. Undoubtedly, these changes have included cost-cutting and other reactive tactics to ensure survival.

Hospitals that take a comprehensive approach to revenue cycle management — pairing trusted technology with expert guidance — aren’t just solving financial challenges. They are investing in their people, their patients, and the future of independent community healthcare.