How RCM Outsourcing Companies Can Help Practices Increase Collections by Up to 60%

Explore what RCM outsourcing companies do and learn why healthcare practices are turning to them to improve their financial performance.

Across the country, healthcare providers are struggling to navigate unprecedented financial challenges. From increasing patient responsibility and staffing shortages to claim denials and inefficient billing processes, collecting revenue quickly and consistently has become increasingly difficult. Partnering with experienced RCM outsourcing companies helps reduce administrative burden, improve cash flow, and increase collections by up to 60%.  

This article will explore what RCM outsourcing companies do and why so many healthcare practices are turning to them to improve financial performance. We will also take a closer look at why practices struggle with collections and identify how BillFlash can help healthcare organizations maximize revenue through end-to-end revenue cycle management.

What Are RCM Outsourcing Companies?

Revenue cycle management (RCM) is the process healthcare practices use to manage the following types of financial operations:

• Insurance verification
• Claims submission
• Demographic and charge entry
• Claim rejections
• Payment posting
• Denial management
• Patient billing and payments
• Collections
• Analytics and reporting

What RCM Outsourcing Companies Do

Many healthcare practices rely on RCM outsourcing companies to manage their entire revenue cycle. This includes everything from when a patient schedules an appointment to when the account balance is resolved. The process also encompasses the collection of patient payments, reconciliation of insurance payments, and write-offs or contractual adjustments.  

According to a 2025 Medical Group Management Association (MGMA) poll, 36% of respondents are already outsourcing or automating part of their revenue cycle management, with the most common areas being collections and medical/billing coding.

Effective RCM helps healthcare providers receive accurate and timely payments. It also helps maintain regulatory compliance, optimize financial performance, and improve patient satisfaction.

Why More Practices Are Outsourcing RCM

A recent report from the American Academy of Professional Coders (AAPC) found that 63% of healthcare providers are experiencing staffing gaps in their RCM departments. This also leads to slower collections, increased errors, and compliance issues. This, combined with rising patient payment responsibility and increasing claim complexity, is causing more practices to enlist the services of RCM outsourcing companies.

The need for specialized expertise and the desire to improve profitability are also becoming more evident. Providers continually strive to strengthen revenue by improving collections, reducing days in accounts receivable, and minimizing claim denials.

Why Many Healthcare Practices Struggle to Collect Payments

According to the Trends in Healthcare Payments, the primary revenue concern for healthcare providers is patient collections, with 71% of respondents reporting that it takes more than 30 days after a visit to receive payment.

Impact on Cash Flow

Increasing patient financial responsibility, high-deductible health plans, and delayed payments are significantly impacting cash flow. In fact, even a small increase in outstanding balances can drastically affect practice revenue.

Staffing Challenges and Administrative Burden

Understaffed billing teams and employee turnover are also adding to the administrative burden that many healthcare practices are experiencing. These staffing challenges are increasing the time needed for manual follow-up, significantly slowing the pace of revenue collections.

The Hidden Cost of In-House Collections

The following tasks exacerbate the workload for office staff, leading to patient dissatisfaction and a reduction in on-time payments:

• Insurance claim submissions and resubmissions
• Denial management and appeals
• Eligibility verification and prior authorizations
• Statement processing
• Payment reminders
• Phone calls
• Collections management

These inefficiencies don't just strain your staff—they directly impact your bottom line and the patient experience. With patient financial responsibility growing at an alarming rate, disconnected workflows and manual tasks make it nearly impossible to deliver the quick, accurate responses consumers expect when billing questions arise. Today, more than 70% of patients under 35 are willing to switch providers to achieve a better healthcare payment experience. This makes partnering with the right RCM outsourcing companies essential.

Claims Denials and Revenue Leakage

Coding errors, eligibility issues, missing documentation, and untimely follow-up can lead to claim denials and revenue leakage. Even the smallest errors can also add up, resulting in substantial lost revenue over time.

How RCM Outsourcing Companies Help Increase Collections

Below are some of the ways RCM outsourcing companies can benefit healthcare practices:

1. Faster and More Accurate Claims Processing

RCM outsourcing companies can help reduce errors and improve clean claim rates. Experienced billing specialists support faster, more accurate claims processing, so more claims are paid on the first submission, increasing collections.

2. Proactive Denial Management

Employing the services of a qualified RCM company can ensure continuous process improvement through effective denial identification, appeals management, and root cause analysis—helping you recover revenue that might otherwise be lost.

3. Better Patient Billing and Communication

RCM outsourcing companies provide the following services, which help to improve patient billing and communication:

• Automated payment reminders
• Billing notifications (email and text)
• Clear patient statements
• Flexible payment options
• Two-way patient messaging

The result is faster payments and improved patient engagement.

4. Increased Focus on A/R Management

By focusing on aging account reviews, escalation procedures, and follow-up workflows, healthcare practices can optimize their collections process. This also improves cash flow and reduces accounts receivable days.

5. Access to Advanced Technology Without Added Overhead

RCM outsourcing companies provide healthcare providers with unlimited access to advanced technology, including billing automation, reporting dashboards, payment options, and analytics/performance monitoring. The result is enterprise-level capabilities without the need to hire additional staff.

How BillFlash Helps Practices Increase Collections by Up to 60%

BillFlash's advanced end-to-end RCM solutions can increase payments by up to 60%, providing comprehensive support throughout every phase of the revenue cycle.

Services include:

• Insurance verification
• Claims management
• Denial management
• Demographic and charge entry
• Payment posting
• Patient billing
• 24/7 payment processing
• Flexible financing options
• Two-way messaging
• Collections support
• Revenue analysis and reporting

Dedicated Revenue Cycle Experts

As one of the industry's leading RCM specialists, BillFlash has been helping healthcare providers get paid for over 20 years with the best customer and payer experiences. Our BillFlash suite of services also features personalized account management, ongoing performance reviews, and strategic revenue optimization recommendations—giving practices a seamless extension of their administrative workforce without requiring additional staff.

BillFlash Helps Practices Get Paid Faster

• Insurance Eligibility Verification: Verifies active coverage, copay amount, deductible status, and referral or prior authorization requirements.
• Charge and Demographic Entry: Recording patient demographics, CPT codes, and DX codes into the patient management system.
• Pre-Claim Services: Preauthorization lays the foundation for a payable claim before the scheduled visit even begins.
• Claim Processing: Validate and review claims before submission, collecting every dollar earned with professional coding, precise documentation, and a higher level of accuracy.
• Denial Management: Optimize rules, correct edits, appeal claims, adjust protocols, and resubmit to achieve superior payment results. We also incorporate a highly effective appeals process to reduce denials and regular follow-ups on unpaid claims.

BillFlash Solutions Make Paying Easier for Patients

The following BillFlash services make paying easier for patients, encouraging them to make prompt payments:

PreBill

Notifies patients of balances before the scheduled visit, helping practices collect payments earlier in the revenue cycle.

eBills

Billing notifications are sent via email and/or text with a direct link to view and pay online, making it easier for patients to act and pay promptly.

PayReminders

Automated payment reminders keep patients informed of their financial responsibility while significantly reducing the need for manual staff follow-up.

Payment Services

Patients can pay online, in-office, by phone, or by mail using credit cards, debit cards, eChecks, Apple Pay, Google Pay, automated payment plans, stored payment methods, and recurring payments. This also ensures a seamless payment experience wherever patients choose to pay.

FlexPay Patient Financing

Providers get paid in full upfront while giving patients the flexibility to spread payments over time. It features a quick online application, 90% approval rate, no hard credit check, and 0% interest financing options. This also makes it easier for patients to complete payments and improves overall satisfaction.

Payer Messages

Patients have a direct line to ask billing questions through the online payment portal, PayWoot.com—without picking up the phone. When questions get answered fast, patients can pay right then and there.

Integrated Collections Services

The BillFlash suite of services also provides a seamless transition from billing to collections, giving providers control and visibility over account placement with the ability to review and approve accounts. Recovered payments are deposited directly into your merchant account, ensuring your organization gets paid first.

Reporting and Analytics

A dedicated account manager provides invaluable financial insights into collection trends, A/R analysis, and revenue performance monitoring to optimize financial performance. By reviewing performance reports and conducting monthly meetings, the account manager can offer strategies to help practices boost RCM efficiency, reduce denials, and enhance revenue. This also ensures every decision you make is backed by data and focused on your financial health.

Signs Your Practice May Benefit From RCM Outsourcing

If these challenges sound familiar, your practice may benefit from partnering with RCM outsourcing companies:

Common Warning Signs

• Difficulty keeping up with the demands of billing
• Growing administrative workload
• Inconsistent cash flow
• Increasing claim denials
• Rising accounts receivable
• Slow patient payments
• Staff burnout

Ask Yourself

1. Is your staff spending too much time chasing payments instead of meeting patient needs?
2. Are claims being processed and paid as quickly as they should be?
3. Does your practice have a clear picture of where revenue is being lost?

The Financial Impact of Partnering With the Right RCM Outsourcing Company

When dealing with the right RCM outsourcing companies, healthcare practices often experience:

• Accelerated payments
• Faster reimbursements
• Greater operational efficiency
• Lower administrative costs
• Reduced denials
• Stronger cash flow

Why the Right Partner Matters

Not all RCM outsourcing companies offer the same level of technology, service, or healthcare expertise. Selecting a partner that combines experienced revenue cycle specialists with modern payment, billing, and collection tools can have a drastic impact on overall financial performance.

Ready to Improve Collections and Strengthen Your Revenue Cycle?

In today’s economic climate, many healthcare practices are facing immense financial pressure. They are also being forced to deal with complex collection issues related to timely payments and larger outstanding balances as they struggle to maintain a healthy cash flow.

RCM outsourcing companies help solve some of these common challenges by providing access to advanced technology, specialized expertise, and proven processes that reduce administrative burden and improve collections. BillFlash combines integrated billing, payment, financing, and collection solutions with expert revenue cycle management to help healthcare practices maximize revenue and streamline operations.  

Schedule a demo today and learn more about our comprehensive end-to-end RCM services. Discover how we can help your practice increase collections, improve cash flow, and reduce administrative workload.