5 Tips on How to Prepare Hospitals for RCM Automation
5 Tips on How to Prepare Hospitals for RCM Automation
By Jamie Hill-Walters | Published: 2025-12-03 15:18:00 | Source: MedCity News
Revenue cycle management (RCM) is consistently among the top use cases for artificial intelligence (AI) and automation in healthcare.
For those familiar with healthcare finance, the potential advantages of artificial intelligence and automation for ERM are clear. RCM is filled with repetitive, repetitive processes that can be standardized—such as prior authorizations, referrals, claims management, and acceptance notifications—making it particularly suited to the efficiencies that automation can provide.
By simplifying these common regional risk management tasks, automation can reduce administrative burdens and expenses while enhancing efficiency and productivity, according to the report. American Hospital Association.
74% of hospital CFOs and revenue cycle leaders actually said so Use automation Or are in the process of implementing them into their revenue cycle processes, according to Deloitte.
And with today’s technologies, such as automation and artificial intelligence, it is possible to free up up to 50% of time for revenue cycle professionals to take on more strategic and relationship-building responsibilities, according to Deloitte.
For hospitals, successful automation starts with strategic preparedness.
Here are five key tips to help hospitals prepare for automation and unlock new levels of efficiency, productivity, and performance through RCM.
Mapping pain points in your current workflow: Before automation can deliver results, hospitals must have a clear understanding of where inefficiencies lie in their current revenue cycle operations. RCM is inherently complex, with large teams covering multiple functions and workflows. This complexity often leads to bottlenecks, redundant steps, or inconsistent processes, which in turn leads to longer payment timelines, higher employee burnout, and poor cash flow.
Identifying these pain points in the workflow provides the foundation for a targeted automation strategy. Identifying steps that are too manual, error-prone, or duplicate allows leaders to prioritize the processes most in need of automation. By visualizing each stage of the claim or authorization workflow, organizations can discover where delays occur, such as interdepartmental handoffs or payer-specific slowdowns. With this knowledge, automation becomes a tool for accuracy rather than guesswork, enabling measurable improvements in speed, accuracy, and efficiency.
Assess technology infrastructure and interoperability: A common pitfall in automation initiatives is to underestimate the importance of technology infrastructure. Even the most advanced automation solutions will falter if they cannot integrate with a hospital’s existing systems. Seamless interoperability with electronic health records (EHRs), payment gateways, and other underlying technologies is essential to avoid disruptions or costly workarounds.
Hospitals preparing for automation should start by evaluating whether their IT environment can support the new tools without creating friction. This means evaluating system compatibility, data sharing capabilities, and scalability. The goal is to ensure that automation can be integrated into existing workflows rather than forcing employees to adopt parallel processes. Investing in robust infrastructure upfront reduces risk, accelerates deployment, and paves the way for sustainable automation growth.
Key performance metrics: Automation is not a comprehensive solution; It is most effective when it is aligned with the organization’s specific performance objectives. Benchmarking key metrics before implementation provides the necessary baseline to measure progress and determine where automation will yield the greatest return. Typical criteria may include cost of collection, denial rates, days until authorization, time spent per claim contact, and write-off amounts.
By establishing these standards, hospitals gain clarity about the vulnerabilities and potential value of automation. Tracking improvements over time also holds teams accountable and ensures automation stays tied to tangible results. Ultimately, benchmarking empowers leaders to demonstrate value to stakeholders and improve their automation strategy based on real-world results rather than assumptions.
Assess the team’s readiness and change its appetiteTechnology alone does not guarantee success: people are at the core of any automation initiative. Hospitals should evaluate whether employees are ready for change and develop a plan to build buy-in throughout the organization. Resistance is normal, especially in healthcare, where employees are accustomed to established workflows and are wary of disruptions.
Workforce preparation includes transparent communication about automation goals, training that equips employees with the skills they need, and opportunities for teams to provide feedback. Hospitals that engage employees early in the process are likely to see smoother adoption and stronger long-term results. By framing automation as a tool that reduces administrative burden and enables employees to focus on higher-value activities, leaders can help shift mindsets from apprehensive to enthusiastic.
Keep iterating and identifying new opportunities: Automation should be viewed as a journey, not a one-time project. Once hospitals begin to see the benefits of automation in certain areas of the revenue cycle, it becomes necessary to continually evaluate new expansion opportunities. This iterative approach allows organizations to build on their successes and adapt to evolving challenges, driver requirements, or regulatory changes.
Regularly re-evaluating workflow ensures that hospitals remain proactive rather than reactive. As technology advances and organizational needs shift, new use cases for automation will emerge – from denial management to patient financial engagement. A culture of continuous improvement ensures that automation is not only implemented, but embedded as a key driver of efficiency, economic sustainability and patient satisfaction.
Preparedness leads to results
The promise of automation in regional risk management is undeniable, but achieving it requires more than just adopting new tools. Hospitals must take deliberate steps to prepare their staff, processes, and systems for change.
Mapping weak points in the workflow ensures that automation targets the right problems. Evaluating infrastructure and interoperability prevents costly implementation challenges. Comparison metrics provide clarity and accountability. Engaging teams drives adoption, while continuous iteration increases the value of automation over time.
Together, these steps create a roadmap for hospitals to not only successfully implement automation but also maintain its benefits into the future.
Photo: Erhui 1979, Getty
Jimmy Hill WaltersCRCR, serves as Chief Customer Officer at Janus healthbringing with her nearly 20 years of healthcare revenue experience. As CCO, Jamie leads Janus Health’s customer-focused strategy, oversees the delivery of an exceptional customer experience and ensures our products, services and operations are aligned with customers’ needs and expectations. Prior to joining Janus Health, Jamie was Chief Revenue Officer at Alpha II, where he served on the leadership team through two acquisitions and strategic investments from TA Associates and Westview Capital Partners. Prior to joining Alpha II, she held several leadership positions at healthcare payment specialists Ensemble Health Partners, which was acquired by TransUnion. A past president of the HFMA Lone Star Chapter, Jimmy has worked with the largest healthcare systems in the United States, many of which are recognized in US News and World Report’s “Best Hospitals in America.”
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