74% of Hospitals Use Some Revenue Cycle Automation
More hospitals and health systems are automating revenue cycle operations, with many leveraging artificial intelligence.
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By - Hospitals and health systems are increasingly using revenue cycle automation to streamline operations and improve efficiency.
A recent survey of over 450 CFOs and revenue cycle leaders at US hospitals and health systems found that nearly three-quarters (74 percent) of these organizations are actively automating some portion of their revenue cycle operations. The survey was commissioned by AKASA and conducted through the Healthcare Financial Management Association’s (HFMA) Pulse Survey program.
Still, about a quarter (24 percent) of survey respondents said they have never used any form of revenue cycle automation and 2 percent said they do not use revenue cycle automation anymore.
Adoption of revenue cycle automation has been on the rise. A previous survey also from AKASA found that 78 percent of financial leaders from hospitals and health systems used or were implementing some type of automation for revenue cycle operations. In that survey, only about 8 percent had never used automation for revenue cycle, 1 percent did not use it anymore, and 12 percent did not know.
The healthcare revenue cycle is ripe for automation. The process includes many repetitive tasks, which are oftentimes done manually. However, implementing automation is not straightforward and has serious implications on revenue and productivity, making adoption sometimes difficult.
Yet, hospitals and health systems seem to be making revenue cycle automation a priority, with many investing in more sophisticated forms of technology to improve operations. The survey found that 46 percent of financial leaders are using some form of artificial intelligence (AI) or machine learning (ML) in the revenue cycle. Another 43 percent said they use robotic process automation (RPA), making RPA and AI the top forms of automation being used for revenue cycle operations among organizations leveraging automation.
Laggards are looking into RPA, AI, and other forms of revenue cycle automation. Eighty percent of respondents who said their organizations do not currently use automation in the revenue cycle also said it is a priority to adopt the technology within the next two years. Most of these respondents said it is a priority in 2024.
Revenue cycle automation can have major benefits, including lower cost-to-collect, increased productivity, and fewer claim denials and errors. However, major barriers still exist and impede the adoption of AI and other technologies in the revenue cycle. For example, lack of interoperability, particularly with revenue cycle solutions and an organization’s EHR or practice management system, hinders the adoption of other technologies. Many hospitals and health systems also worry about job losses tied to the adoption of revenue cycle technology like AI.
But hospital and health system leaders are discovering that automation is crucial to revenue generation, patient financial experience, and other vital aspects of operations. As claim volumes increase once again and many organizations face severe staffing shortages, automation is stepping in to bridge gaps and increase efficiency.
“Automation is no longer simply an option in the revenue cycle — it is an imperative,” said Amy Raymond, senior vice president of revenue cycle operations and deployments at AKASA.
“Technology has never been more capable of addressing the challenges of revenue cycle operations than it is today. Leaders now have automation options that can effectively harness the power of AI and large language models (LLMs) for everything from addressing prior auth holistically to preventing and resolving denials. These advanced technologies are driving real results, including increasing revenue yield, reducing costs, and enabling teams to focus on the work that provides the most value to the organization,” Raymond stated.
