Explore how outsourcing revenue cycle management can benefit your practice's overall operations and how RCM partners like BillFlash can help.
Healthcare billing is more complex than ever, and practices are feeling the strain. Rising operational costs, rising staffing shortages, and growing regulatory changes in 2025 are creating challenges for medical practices of all sizes. Unchecked revenue-cycle inefficiencies result in hospital systems losing up to $260 billion a year. These trends strain the cash flow and administrative resources of small and mid-size practices. As a result, more practices are outsourcing revenue cycle management (RCM) to reduce stress, decrease administrative workload, increase collections, and streamline their operations.
What Is Revenue Cycle Management (RCM)?
Revenue cycle management (RCM) is the end-to-end process of managing a patient's financial transactions throughout their visit, from preregistration and insurance verification through coding, billing, collections, and final payment. In an in-house RCM model, a practice's staff (billers, coders, front-desk, etc.) handle all of these steps internally. This can give providers direct control, but it also means assuming all the associated overhead.
Outsourcing revenue cycle management involves hiring a third-party provider to handle billing and collections. An RCM partner often has specialized expertise, industry-grade technology, and economies of scale. For practices that cannot afford to maintain RCM internally, outsourcing can streamline processes and turn fixed costs into variable fees.
Why 2025 Is a Tipping Point for Outsourcing Revenue Cycle Management
The numbers tell an interesting story. The healthcare RCM outsourcing market reached $32.0 billion in 2024 and is projected to reach $108.9 billion by 2033, with 61% of providers planning to outsource RCM tasks soon, including more than one-third (36%) of practices that intend to outsource or automate at least part of their RCM in 2025. What factors are driving this change?
- Surge in high-deductible plans and patient responsibility: About 50% of private industry workers now have high-deductible health plans, shifting payment responsibility directly to patients and complicating collections.
- Ongoing staffing shortages and administrative burnout: The healthcare industry is projected to face a 3.2 million worker shortage by 2026, with over 145,000 healthcare providers leaving the sector between 2021 and 2022.
- Rising claim denials and payer complexity: Complex payer rules and frequent updates mean more claims are initially rejected. Healthcare insurers denied nearly one in five claims in 2023, creating an additional administrative burden. Additionally, almost 15% of claims to private insurers are denied upfront, and specific insurance markets experience denial rates as high as one-third. Staff must manually fix and resubmit every denied claim, which consumes time and money.
- Pressure to do more with less: Small practices face increased pressure to maintain profitability while navigating complex billing requirements. Providers already feel overwhelmed, so outsourcing secondary tasks, such as billing, is an increasingly appealing option.
Key Benefits of Outsourcing Revenue Cycle Management
By outsourcing revenue cycle management properly, practices can gain several key benefits from their RCM partners:
Faster Payments & Improved Cash Flow
Specialized RCM companies utilize optimized workflows to expedite reimbursements. MGMA notes that good RCM vendors “ensure timely payments and reduce administrative burdens” by managing claims submission, preventing denials, and handling appeals.
Reduced Administrative Burden
Staff no longer spend hours pursuing claims or calling patients about payments, freeing valuable time for patient care and higher-value clinical tasks. One of the benefits of outsourcing revenue cycle management to a vendor like BillFlash is that it eliminates “back office billing distractions, costs, and headaches,” allowing practice staff to focus on healthcare. Additionally, BillFlash offers billing, payments, and collections services on a single, convenient platform that streamlines the entire revenue cycle—helping your practice collect faster, reduce administrative burden, and deliver a better patient and staff experience.
Access to RCM Experts
RCM partners live and breathe billing. Outsourcing revenue cycle management to expert teams streamlines payment processes by utilizing their advanced knowledge and technology. A specialized understanding of changing payer rules, billing codes, and compliance requirements also ensures consistent handling of appeals and adherence to regulatory requirements. This knowledge helps minimize errors and speed up collections.
Better Patient Experience
RCM partners often provide modern patient billing tools. Experienced partners like BillFlash offer eBills via email or text, automated PayReminders, and easy-to-use payment portals, making it simple for patients to manage their balances and pay on time. One practice operations manager stated their patients “really like the eBills” and appreciate the streamlined online payment options. In addition to these features, BillFlash FlexPay enables patients to pay their bills in monthly installments, allowing them to afford care without added stress. The best part is that the provider receives full payment upfront.
Scalability and Flexibility
As a practice grows or changes its scope of services, the right outsourcing partner can also scale. For example, an increase in patient volume may require new hires and equipment if managed in-house. Outsourcing revenue cycle management can help allocate more staffing or bandwidth without requiring the practice to make significant investments. RCM partners can also quickly adjust to new specialties or payer mixes. This flexibility is especially valuable for small and mid-size practices that cannot easily afford the fast expansion of their billing department.
What to Look for in an RCM Partner
When outsourcing revenue cycle management, focus on these key areas:
Integration With Existing Systems
The potential RCM partner must work smoothly with your practice's EHR/Practice Management software. The partner also needs to have experience with your specific system or have the ability to adapt to it. The MGMA emphasizes checking a potential RCM partner's “technological capabilities and ability to integrate with existing systems”. A good RCM partner will link to your records, ensuring that patient data flows smoothly and updates are instantly reflected.
Transparency and Communication
The relationship between a potential RCM partner should be open and collaborative. The partner should be able to provide regular reports and share key performance indicators, such as the number of days in accounts receivable (A/R). Frequent communication is also critical. For example, scheduled meetings to review performance can catch issues early and open the door for a discussion on what happened and what can be improved so it does not happen again.
Pricing Model
Understand the potential risks and charges associated with outsourcing revenue cycle management. Standard models include a percentage of collections or a flat fee per claim. Many RCM partners charge based on collections, which aligns their incentives with yours, but may vary from month to month. Ensure you compare total costs with the expected ROI and be aware of hidden fees. Read the fine print for any potential extras so you can budget accurately.
Track Record and Support
Analyze the RCM partner's experience and reputation. Ask for references or case studies, especially from practices like yours (size and specialty). Verify that the vendor is HIPAA and PCI compliant to ensure the protection of patient data. RCM partners must also update their workflows to stay current with regulations and ensure the secure handling of patient information. Overall, a good RCM partner should have a proven track record of improving financial metrics and be willing to share this with potential clients.
Why Practices Choose BillFlash for Outsourced RCM
BillFlash is a leading RCM partner that many practices trust. BillFlash offers end-to-end RCM services that will manage everything from pre-claim services to patient payments and collections.
Key features of outsourcing revenue cycle management to partners like BillFlash include:
Pre-Claim Services
BillFlash's team verifies insurance, obtains pre-authorizations, and scrubs claims before submission. We help prevent denials by “laying the foundation for a payable claim” upfront. This means cleaner claims and faster reimbursement right from the start.
Professional Claim Processing
Inbound claims are processed with expert coding and documentation. One of our promises is to “collect every dollar you earn with excellent documentation, professional coding, and a higher level of accuracy.” We also operate a highly effective appeals process for any denials, thereby reducing lost revenue.
EHR/EMR Integration
Another reason practices choose BillFlash is the ability to work with over 100 EHR and practice management systems. The goal is for patient and visit data to sync effortlessly, so practice staff will not have to enter the same data twice.
Patient Billing and Payments
BillFlash utilizes multi-channel tools to simplify and make patient payments stress-free. Patients receive bills by mail, along with free eBill notices via text and email, leading them to a payment portal (PayWoot.com) where they can easily pay their balances. PayReminders—automated text and email reminders can be sent up to three times per month, at 7, 14, and 21 days after the first statements are sent—help patients stay on track, reducing the risk of missed payments.
For patients who require more flexibility through payment plans, BillFlash FlexPay allows them to break down their bill into monthly installments via an application process that takes less than one minute to complete, with no hard credit check required. Every approved patient is also guaranteed a 0% interest financing option, helping them afford care without compromising their credit score. By outsourcing, your revenue cycle management partner is positioned to help you communicate balances, improving transparency and satisfaction.
Flexible Pricing Options
Practices have options between flat-rate and contingency pricing models based on their budget and preferences. For example, ambulatory medical practices utilizing BillFlash FlexPay can enjoy a 6% flat rate, which is deducted from each deposit into their bank account. This flexibility enables small practices and larger groups to utilize a pricing structure that suits their unique situation.
Real-Time Tracking and Support
BillFlash also offers an online dashboard that enables practices to track claims and patient payments in real-time. Each client gets a dedicated account manager who holds monthly review meetings. In those meetings, practice leaders review performance reports together and refine strategies to expedite collections and minimize denials.
6 Questions You Should Ask About Outsourcing Revenue Cycle Management
Q: How do I know if my practice is ready to outsource revenue cycle management?
A: If you're dealing with rising A/R days, more denied claims, staff burnout, or inconsistent cash flow, it may be time. Outsourcing revenue cycle management can alleviate pressure and help you get paid faster without the need for additional staff.
Q: Will I lose control of my billing if I outsource it?
A: No. A good RCM partner provides you with real-time visibility into billing, claims, and payments, while handling the heavy lifting behind the scenes. With BillFlash, you stay in control with full access to performance dashboards and reporting.
Q: Is outsourcing revenue cycle management only for large practices?
A: Not at all. Small and mid-sized practices often benefit the most from this approach. Outsourcing levels the playing field by giving you access to expert teams, automation, and scalable systems that would be costly to build in-house.
Q: How does outsourcing affect patient communication?
A: When done right, it improves the patient experience. Services like PreBill, eBills via text and email, and flexible payment options make it easier for patients to pay and feel supported throughout the process.
Q: How much does outsourced RCM cost?
A: It depends on your provider. BillFlash offers flat-rate and contingency pricing to fit your budget and growth goals. This means no surprises and no one-size-fits-all contracts.
Q: Can outsourced RCM integrate with my current EHR or billing system?
A: Yes. BillFlash integrates with over 100+ billing systems and EHRs, so your current workflow stays intact. The only difference is that it will be faster, more efficient, and less stressful.
Is It Time to Outsource?
For many small and mid-sized practices, the question has shifted from “Why outsource when we can do it ourselves?” to “Is it time to outsource?” The current healthcare landscape suggests that inaction will only lead to increased risks. Failing to take action can result in slower cash flow, more denials, and frustrated staff. The growing trend toward outsourcing revenue cycle management reflects its benefits, including improved cash flow, reduced administrative burden, and enhanced patient experiences.
Now is the perfect time to evaluate whether your current billing process remains sustainable in the challenging healthcare environment of 2025. Schedule a demo with BillFlash to learn more about our billing, payment, and collection software.