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Frost & Sullivan: Growing Reimbursement Challenges Force Hospitals to Reengineer Revenue Cycle Management
Date:4/17/2013

MOUNTAIN VIEW, Calif., April 17, 2013 /PRNewswire/ -- Today, hospitals are facing the twin burdens of Medicare and Medicaid cuts stipulated by the Affordable Care Act (ACA) — estimated at more than $150 billion in reductions over the next 10 years — in addition to the specter of additional cuts from the Budget Control Act of 2011.  Most hospitals have long deployed automated systems to address core processes around revenue cycle management (RCM). However, these legacy IT applications often have outmoded technology platforms that lack the advanced functionality needed to address new models of care delivery and reimbursement. In addition, the complexity of medical billing and collections has created fragmented workflows across the patient accounts pathway, resulting in gaps and inefficiencies that lead to lost revenue.

New analysis from Frost & Sullivan's (http://connectedhealth.frost.com) U.S. Hospital Revenue Cycle Management: Overview and Outlook, 2012-2017 research finds the market for RCM applications and services in U.S. hospitals will grow significantly and steadily over the next five years.  From the valuation of $1.90 billion in 2012, the total U.S. hospital RCM market is forecast to reach $3.07 billion in 2017, representing a 61.6 percent increase from 2012. The majority of revenues will come from replacements and/or updates of legacy RCM systems, in addition to an increased use of managed services and consultants that provide niche services around specific RCM pain points.

For more information on this research, please email Britni Myers , Corporate Communications, at britni.myers@frost.com with your full name, company name, title, telephone number, company email address, company website, city, state and country.

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