By Sid Mehta, Chief Growth Officer, Access Healthcare
Think you know how revenue cycle management works? Think again.
After more than two decades in healthcare revenue cycle leadership, including the past several years at Access Healthcare, I’ve seen firsthand how misconceptions about RCM can quietly erode financial performance. Too often, hospitals and health systems operate with outdated assumptions that limit innovation, stall operational progress, and lead to costly missteps.
The truth? Revenue cycle management isn’t just a back-office function; it’s the financial engine that powers care delivery. It connects the clinical and the operational, impacting not only how and when providers get paid, but how patients experience their healthcare journey.
Still, despite its critical role, RCM remains shrouded in confusion. In boardrooms and budget meetings, I continue to hear the same flawed narratives repeated myths that sound reasonable on the surface but fall apart under scrutiny.
This is the first of a two-part series where I’ll unpack 10 of the most common RCM myths I’ve encountered in my career. In Part 1 below, we’ll take on the five major misconceptions and replace them with clarity, backed by data, frontline insights, and lessons learned from working alongside providers of all sizes. My hope is that this series helps you approach your revenue cycle decisions with greater confidence, strategy, and impact.
Myth #1: RCM is Only About Billing and Collections
The Reality: RCM is an End-to-End Strategy That Shapes a Provider’s Financial Future
It’s a common misconception: revenue cycle management (RCM) is just about sending bills and chasing payments. But that narrow view misses the real story. RCM is not a single step. It’s a sophisticated, end-to-end strategy that determines how well a healthcare organization thrives.
RCM starts long before a bill is ever generated. The journey begins the moment a patient schedules an appointment and continues through every touchpoint starting with registration, then eligibility checks, cost estimates, claims submission, denial management, all the way to final payment reconciliation. Each step is a chance to optimize cash flow, minimize denials, and enhance patient experience.
What does modern RCM really look like?
Revenue cycle success begins with accurate patient registration and real-time eligibility verification, followed by transparent cost estimation and effective benefits coordination. Clean claim submission and proactive denial prevention strategies ensure claims move forward without unnecessary delays. Ongoing accounts receivable (A/R) management and timely follow-up are essential to maintaining cash flow, while advanced analytics provide visibility into performance trends, helping to refine processes and minimize revenue leakage.
The numbers tell a compelling story. According to Experian Health’s 2025 State of Patient Access Survey:
22 percent of patients experience care delays due to insurance verification issues
20 percent encounter billing or medical record errors before receiving care
More than 50 percent of providers cite data inaccuracies at registration as a primary cause of denials
On the operations front, the transformation is just as dramatic. A 2025 report by Black Book Research found that:
79 percent of healthcare organizations are actively reevaluating their RCM outsourcing contracts
83 percent saw at least a 10 percent reduction in claim denials within six months of implementing AI-powered RCM tools
91 percent of healthcare organizations now require AI or robotic process automation (RPA) capabilities in their RCM agreements
The takeaway? RCM is no longer just a back-office function. It’s a strategic lever for financial performance. Hospitals and health systems that embrace RCM as a data-driven, enterprise-wide discipline operate more efficiently, adapt faster to payer demands, and recover revenue that would otherwise slip through the cracks.
RCM isn’t just about getting paid. RCM is a strategic cornerstone for sustainable success.
Myth #2: Artificial Intellgence Will Replace RCM Staffing Teams
The Reality: AI empowers people. It doesn’t replace them, it makes them indispensable
The rise of artificial intelligence has sparked anxiety across healthcare: Will AI make revenue cycle teams obsolete? The answer is clear:
AI isn’t here to replace people. AI will make skilled employees indispensable.
Think of AI as a powerful ally, not a rival. The smartest RCM organizations use AI to automate repetitive tasks, uncover insights, and flag issues before they become costly problems. This frees up skilled professionals to focus on what truly matters: solving complex challenges, engaging with patients, and driving financial results.
How does AI supercharge RCM teams?
Identifies high-risk claims before submission
Flags coding errors and missing data in real time
Predicts denial patterns and automates resolution pathways
Frees staff to focus on nuanced patient interactions and exception-based workflows
The impact is real…and measurable
A 2025 report by Black Book Research revealed that:
83 percent of healthcare organizations using AI-powered RCM tools saw a 10 percent drop in denials within six months
68 percent improved net collections, with nearly 40 percent seeing at least a 10 percent boost in cash flow
96 percent said AI-enabled analytics enhanced long-term revenue cycle planning
Meanwhile, the American Hospital Association reports that nearly half of all hospitals now use some form of AI in their RCM operations, with 74% rolling out broader automation strategies. But there’s a catch: Lean too heavily on automation, and you risk missing the human judgment needed to navigate clinical complexity, regulatory shifts, and payer quirks—areas where experienced RCM professionals shine.
Myth #3: RCM Outsourcing Means Losing Control Over Financial Performance
The Reality: The Right RCM Partner Gives You More Control—Not Less
For many healthcare leaders, the idea of outsourcing revenue cycle functions raises a red flag. “Will we lose visibility?” “Will our processes get disrupted?” “Will we still own our financial performance?”
Frankly, these concerns are rooted in outdated assumptions. RCM outsourcingmeans gaining expertise with full transparency. While some organizations fear a loss of control, the reality is that the best RCM partners operate as an extension of your team. They provide open communication, proactive reporting, and accountability for results. In fact, with the right partner, you may find you have more insight and influence over your revenue cycle than ever before.
What does a strategic RCM partnership look like?
Full transparency through real-time dashboards and detailed KPIs, giving you constant visibility into every claim, payment, and workflow.
Embedded workflows within your existing electronic health record (EHR), practice management (PM), or billing platforms, ensuring operational continuity and minimal disruption.
Outcome-based contracts that tie vendor performance directly to net collections, denial rates, and turnaround times.
Regular executive involvement and collaborative goal-setting, so your organization’s priorities always drive the partnership.
The benefits go beyond cost savings
Outsourcing can reduce administrative burdens, allowing your internal teams to focus on patient care and strategic initiatives.
With scalable solutions, you can quickly adapt to volume fluctuations without the headaches of hiring, training, or layoffs.
Advanced analytics from your RCM partner provide actionable insights to drive continuous improvement and revenue growth.
The right RCM partner should be integrated seamlessly with your systems, collaborate closely with your team, and provides real-time reporting so you always know where your revenue stands. They are proactively solving problems, offering strategic insights, and adapting to your needs as an organization.
Outsourcing RCM isn’t about letting go of control. Outsourcing RCM is about leveling up.
Myth #4: Offshore teams are challenged by language, culture, and time zone differences
The Reality: Today’s offshore RCM teams are highly skilled, culturally attuned, and operational around the clock
Concerns about offshore RCM support often stem from outdated or a one-off experience someone had; for example, issues with accents, misunderstood terminology, or overnight communication delays. But today’s global RCM workforce tells a different story.
Modern offshore teams undergo months of rigorous training in the US healthcare systems, payer nuances, and patient interaction protocols. Many are certified coders, billing specialists, and revenue cycle experts, fluent in both English and the language of compliance.
Here’s what separates modern offshore models:
Language proficiency: Global delivery teams prioritize neutral accents and active listening to ensure smooth patient and provider interactions.
Cultural training: Teams are trained in US etiquette, healthcare lexicon and workflows, and even regional dialect differences.
24/7 coverage: Offshore delivery enables true follow-the-sun workflows and alignment to client desired shifts, accelerating turnaround times and improving responsiveness across time zones.
Shared KPIs: Performance metrics and service level agreements (SLAs) are aligned with those of domestic teams, ensuring consistency, transparency, and accountability.
Offshore doesn’t mean lower quality. It means extended capability and capacity.
Myth #5: All offshore vendors are the same
The Reality: Offshore RCM vendors vary widely in quality, specialization, and results
Treating offshore vendors as interchangeable is a mistake that can cost hospitals millions. Some specialize in transactional tasks like claims entry or payment posting, while others bring strategic capabilities like denial prevention, complex A/R resolution, and analytics-driven decision-making.
What separates top-tier offshore partners from the rest?
Vertical expertise: Leading vendors specialize by area (acute care, ambulatory, behavioral health, or RCM software enablement), delivering deeper impact.
Technology integration: Sophisticated partners embed automation, AI, and analytics directly into workflows.
Client success models: Elite vendors go beyond staffing roles. They invest in long-term client growth through outcome-based contracts, dedicated account managers, and continuous process improvement.
Compliance rigor: HIPAA adherence, HITRUST certifications, and secure work-from-home protocols are table stakes; meaning they’re not optional!
Choosing the right offshore partner isn’t just about geography. It’s about value creation.
Conclusion: From Misconceptions to Momentum
As you've seen, revenue cycle management is no longer just a back-office task. It’s a pivotal strategy that directly impacts a provider’s financial health, operational strength, and patient experience. Yet, despite its importance, persistent myths still cloud decision-making across the industry.
In Part 2, we’ll address the next five myths including:
You cannot outsource coding without risk
Automation only benefits large health systems
Offshore vendors lack education and expertise
Offshore is too risky for protected health information (PHI)
Offshore support means losing your staff
About the Author
Sid Mehta is Chief Growth Officer at Access Healthcare, where he leads the company’s new business initiatives, drives market expansion, and oversees client onboarding and long-term engagement success. With more than 20 years of experience in healthcare revenue cycle and business process outsourcing, Sid is known for translating complex challenges into actionable strategies.
Known for his ability to translate complex challenges into actionable strategies, Sid has built a reputation as a trusted advisor who delivers results. Clients and colleagues alike value Sid’s clarity, candor, and deep understanding of the revenue cycle landscape, qualities that continue to shape Access Healthcare’s role as a trusted partner in smarter RCM.
Sid holds an MBA from Bentley College and an undergraduate degree from Sydenham College. He is certified in Stagen Integrated Leadership, Miller Heiman Strategic Selling, Large Account Management, and Negotiation. He is actively involved in industry thought leadership as a member of HFMA, AHIMA, the Health Management Academy, and Health Evolution.
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