A lot of money is flowing into the medical billing and revenue cycle management side of the healthcare industry, according to a published media report, to help hospitals and medical practices maximize “every dollar they can collect from patients and insurers.”
The report highlights activity from revenue cycle management companies that have filed to go public as well as other merger & acquisition activity and investments from private equity firms that are looking to capitalize on hospitals and healthcare practices outsourcing that part of the business to help maximize their incoming revenue.
That report was coupled with other news released last week, including the launch of a tool from Cerner called RevElate, which is designed to reduce complexity and streamline billing workflows, according to the company. As well, SSM Health, a not-for-profit healthcare network in the Midwest, announced it was partnering with Optum to outsource its revenue cycle management operation. Among the expected benefits of the partnership with Optum will be for SSM to offer its patients a “seamless digital experience that spans the patient journey,” the companies announced.
Under the partnership, revenue cycle employees of SSM Health — which operates 23 hospitals, 290 physician offices, and 10 outpatient facilities in Missouri, Illinois, Wisconsin, and Oklahoma — will become Optum employees while supporting SSM as a client.
A resurgence in healthcare spending, following a significant decline during the initial months of the COVID-19 pandemic, is helping fuel interest in the revenue cycle management space, according to published reports. As individuals are forced to manage more of the financial burdens of their healthcare, the heightened activity in the space is expected to continue.