How Strategic Revenue Cycle Management Can Help Health Systems Stay Independent

The pressure to consolidate is mounting for small to midsize health systems, independent hospitals, and community providers. Nearly 60%* of rural hospitals are affiliated with a larger health system, often in pursuit of financial stability and operational sustainability. However, for many, consolidation is not a strategic choice—it’s a last resort. With 55%* of independent rural hospitals operating in the red, the challenge is not just about survival, but about sustaining independence in an increasingly volatile healthcare landscape.

The Financial Reality of Independence

Staying independent requires more than operational efficiency; it demands financial agility, optimized cash flow, and sustainable revenue cycle management (RCM) strategies. Declining reimbursements, increasing labor shortages, and rising operational costs put immense strain on already stretched financial resources.

For CFOs and VPs of Revenue Cycle Management, the question is: How can we remain financially viable while maintaining autonomy? The answer lies in a strategic approach to RCM. A well-executed revenue cycle strategy can help independent providers remain competitive without sacrificing control. Here’s how:

Agility: The Power to Pivot Quickly

Independent health systems often lack the resources of larger networks, making it challenging to adapt to regulatory changes, payer negotiations, and reimbursement shifts. A strategic RCM partnership enables:

• Proactive adjustments to reimbursement trends, ensuring maximum collections and minimal denials.
• Automation of administrative tasks, reducing labor-intensive processes and improving turnaround times.
• Real-time insights into financial performance, allowing for quick decision-making to navigate market fluctuations.

By optimizing RCM workflows and leveraging automation, independent providers gain the agility to focus resources where they are needed most—enhancing patient care and strengthening financial sustainability.

Efficiency: Maximizing Every Dollar Owed

Inefficient billing and collection processes can lead to revenue leakage, delayed reimbursements, and increased write-offs. The right RCM strategy improves efficiency by leveraging the right people, process, and technology for:

• Reducing claim denials and improving first-pass resolution rates through automated workflows and advanced analytics with actionable insights.
• Enhancing payer negotiations with data-backed insights that strengthen contract discussions.
• Optimizing revenue cycle processes with intelligent solutions, automation and workforce engagement strategies, reducing reliance on manual interventions.

For CFOs, this means improved cash flow, reduced days in accounts receivable (A/R), and a stronger bottom line—without requiring additional internal resources.

Sustainability: Building Long-Term Financial Strength

Financial sustainability isn’t about short-term fixes; it requires a long-term, data-driven approach to revenue cycle transformation. Strategic RCM solutions, such as our Comprehensive Business Office, help independent providers:

• Identify and address systemic inefficiencies that impact revenue performance.
• Develop workforce engagement strategies to improve staff productivity and retention.
• Leverage business intelligence and analytics to make informed financial decisions that drive continuous improvement.

By shifting the perception of RCM from a cost center to a value driver, health systems can build financial resilience and position themselves for long-term independence.

A Smarter Path to Financial Stability

For independent providers, losing autonomy is not the only way forward. Fiscal health can be restored and strengthened through strategic RCM solutions that maximize earned revenue and improve operational performance. By accelerating and optimizing cash flow, independent health systems can maintain control over their financial future, continue serving their communities, and navigate market uncertainties with confidence.

At Currance, we understand the challenges independent providers face. Whether your immediate needs are focused on insurance resolution, insurance management, or a fully outsourced comprehensive business office, our data-driven, technology-enabled approach to revenue cycle management delivers sustainable financial results while improving operational efficiency. We help CFOs and revenue cycle leaders transform their RCM processes, ensuring financial health without sacrificing independence.

Transforming Revenue Cycle Differently. Improving Healthcare Together.

Let’s discuss your revenue cycle challenges and explore how Currance can help your organization achieve long-term financial sustainability. Contact sales@currance.com to learn more.

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*Source: The Chartis Center for Rural Health, published in February 2024