Poll Reveals Eight in Ten Healthcare Providers Are Reassessing RCM Managed Services Contracts Amid Growing Adoption of Intelligent Automation
NEW YORK, NY / ACCESS Newswire / April 18, 2025 / A new study released by Black Book Research reveals that healthcare organizations are accelerating a strategic shift from traditional revenue cycle outsourcing to AI-powered RCM platforms, driven by automation demands, cost control, and operational agility.
In a Q12025 survey of revenue cycle leaders from 220 hospitals and health systems, 79% reported actively restructuring or reassessing outsourcing contracts in favor of technology-first solutions. The findings mark a pivotal evolution in the healthcare financial landscape: instead of eliminating outsourcing, organizations are redefining what they expect - placing automation, transparency, and real-time insight at the forefront.
"The fundamental economics of revenue cycle management have been permanently altered by intelligent automation," said Doug Brown, Founder of Black Book Research and author of the best-selling The Black Book of Outsourcing (Wiley, 2009). "AI-driven platforms are not just augmenting revenue operations - they're replacing the need for manual offshore execution in core billing, coding, and collections workflows. This is catalyzing a reallocation of enterprise health system budgets away from labor-based BPO models toward scalable, self-improving software ecosystems that deliver measurable ROI, predictive insights, and operational sovereignty. RCM software vendors with embedded AI and RPA capabilities are positioned to dominate the next phase of healthcare finance, while traditional outsourcing firms must now undergo radical reinvention or risk obsolescence in an automation-first future."
Key Survey Findings
91% of revenue cycle leaders will require AI and RPA capabilities to be embedded in any new or renewed outsourcing agreement.
72% plan to transition previously outsourced functions (e.g., billing, coding, prior authorization) to AI-powered internal teams or platforms within 24 months.
64% of health systems have already reduced their dependency on BPO vendors for at least one RCM function.
48% are considering hybrid vendor models, where external teams operate the provider's own AI-native platforms.
83% of respondents report that AI solutions directly reduced claim denials by 10% or more within six months of implementation.
The Shift from Manual BPO to Intelligent Platforms
For years, RCM outsourcing vendors have delivered value through labor-intensive processes. Today, with AI and RPA embedded across the revenue cycle, hospitals and health systems are replacing these functions with platforms that automate everything from eligibility to claims analytics. Tech-forward companies are gaining market share by offering integrated solutions that automate billing operations, predict denials, and improve patient financial engagement.
According to Black Book Research survey respondents, traditional RCM outsourcing vendors may certainly face declining renewal rates as more health systems shift to AI-enabled platforms. Executives cited growing expectations for automation-driven outcomes, increased cybersecurity demands, and the need for vendors to retrain staff for technology-based roles. Many participants reported improved efficiency, financial visibility, and adaptability following their organizations' transition from manual outsourcing to intelligent RCM systems.
As AI and automation become more integrated into revenue cycle operations, healthcare providers are reporting measurable gains in efficiency, cost savings, and financial control. In recent Black Book Research surveys, hospitals using AI-enabled RCM platforms cited average reductions in cost-to-collect between 18 and 28 percent, along with improved visibility into payer trends and denial management. Staff roles are shifting from manual tasks to strategic functions such as financial analytics and denial resolution, while patient billing experiences have improved through more accurate estimates and faster resolution. Many organizations also noted that these platforms offer scalability without the need to expand staffing, creating long-term operational advantages. These developments reflect strong growth potential for RCM software vendors and AI-enabled managed services firms that align with evolving provider demands.
"Outsourcing in healthcare revenue cycle management is not being eliminated - it's being fundamentally redefined," said Brown. "Providers are no longer seeking transactional labor arrangements; they're demanding data-driven partnerships built around automation, interoperability, and accountability. Our research shows that nearly half of health systems are open to hybrid models, where external vendors operate the provider's AI-enabled platform under strict performance metrics. This marks a decisive shift from traditional outsourcing to outcome-based collaboration powered by intelligent infrastructure."
About The Black Book of Outsourcing (Wiley Publishers)
The Black Book of Outsourcing: How to Manage the Changes, Challenges, and Opportunities (Wiley, 2005. 2009) is a comprehensive guide for all industries offering strategic insights into the evolving field of outsourcing and offshoring. This annual bestselling manual provides expert advice on operating outsourcing programs, governance checklists, offshoring insights, best practices, and unique resources, making it a seminal work in the outsourcing industry. https://www.wiley.com/en-us/The+Black+Book+of+Outsourcing%3A+How+to+Manage+the+Changes%2C+Challenges%2C+and+Opportunities-p-9780470421529
About Black Book Research
Black Book Market Research LLC is a healthcare-centric market research and public opinion research company endorsed by participation in several major accrediting associations. Specializing in technology, healthcare, outsourcing, and other sectors, Black Book provides unbiased evaluations of healthcare vendors, powered by over 3 million crowdsourced surveys. Their insights reflect real-world experiences of hospitals, physician practices, payers, post-acute providers, and healthcare consumers, equipping decision-makers with critical information to navigate the dynamic global healthcare landscape. www.blackbookmarketresearch.com.
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SOURCE: Black Book Research
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