Flevy Management Insights Q&A

What emerging technologies are set to revolutionize RCM practices in the next decade?

     Joseph Robinson    |    RCM


This article provides a detailed response to: What emerging technologies are set to revolutionize RCM practices in the next decade? For a comprehensive understanding of RCM, we also include relevant case studies for further reading and links to RCM best practice resources.

TLDR Emerging technologies like AI, ML, Blockchain, and IoT devices will revolutionize Revenue Cycle Management (RCM) by automating processes, reducing errors, and improving patient engagement.

Reading time: 5 minutes

Before we begin, let's review some important management concepts, as they relate to this question.

What does Operational Excellence mean?
What does Data Security mean?
What does Predictive Analytics mean?
What does Automation mean?


Revenue Cycle Management (RCM) is a critical aspect of healthcare administration, ensuring that organizations efficiently manage patient care episodes from registration and appointment scheduling to the final payment of a balance. Emerging technologies are set to revolutionize RCM practices in the next decade, enhancing efficiency, accuracy, and patient satisfaction. These technologies include Artificial Intelligence (AI) and Machine Learning (ML), Blockchain, and Internet of Things (IoT) devices, among others.

Artificial Intelligence and Machine Learning

AI and ML are at the forefront of transforming RCM by automating complex processes, reducing errors, and improving decision-making. According to a report by Accenture, AI can potentially save the U.S. healthcare economy $150 billion annually by 2026. AI algorithms are increasingly being used to predict patient payments, identify billing errors, and automate coding processes. For example, AI can analyze historical data to predict which patients are likely to have payment difficulties, allowing organizations to proactively offer tailored payment plans or financial assistance.

Moreover, ML models are being developed to improve the accuracy of medical coding and billing. These models can learn from millions of billing records to identify patterns and anomalies, reducing errors and fraudulent claims. This not only improves revenue but also reduces the administrative burden on healthcare providers. An example of this in action is the collaboration between Google Cloud and Mayo Clinic, where they are using AI to improve patient outcomes and reduce administrative tasks, including aspects of RCM.

Additionally, AI-driven chatbots and virtual assistants are being deployed to enhance patient engagement and streamline front-end RCM tasks such as appointment scheduling, insurance verification, and pre-authorizations. This not only improves the patient experience but also allows staff to focus on more complex tasks, improving overall efficiency.

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Blockchain Technology

Blockchain technology offers a promising solution to many of the trust and transparency issues in RCM. By creating a decentralized and immutable ledger of transactions, blockchain can significantly reduce fraud, billing errors, and administrative costs. A report by Deloitte highlights how blockchain can streamline the claims management process, reducing costs and improving efficiency by automating contract adjudication and payment processing.

Blockchain can also enhance data security and patient privacy, critical concerns in healthcare RCM. By allowing data to be shared securely among stakeholders while ensuring data integrity and compliance with regulations such as HIPAA, blockchain can facilitate a more seamless exchange of information. For instance, the startup Patientory is using blockchain to secure patient data and streamline the billing process, demonstrating the potential of this technology in RCM.

Furthermore, blockchain can enable more transparent and efficient credentialing processes. Credentialing is a significant administrative burden that can delay provider enrollment and reimbursement. Blockchain systems can provide a single, verifiable source of truth for provider credentials, reducing the time and cost associated with credential verification.

Internet of Things (IoT) Devices

IoT devices are increasingly being integrated into healthcare delivery, and they hold significant potential for optimizing RCM. These devices can collect a vast amount of real-time health data, which can be used to improve patient care management and billing accuracy. For example, remote patient monitoring devices can automatically document and code patient interactions, reducing manual entry errors and improving billing accuracy.

Moreover, IoT devices can help healthcare providers offer more personalized and efficient care, which can improve patient satisfaction and adherence to treatment plans. This, in turn, can lead to better health outcomes and more predictable revenue streams. Gartner predicts that the IoT technology will be a critical driver of digital transformation in healthcare, with the potential to significantly impact RCM practices.

Additionally, the integration of IoT devices with AI and analytics can provide healthcare organizations with actionable insights to optimize their RCM processes. For instance, predictive analytics can analyze data from IoT devices to forecast patient admissions and optimize staffing and resource allocation, further improving the efficiency of RCM processes.

Emerging technologies like AI and ML, blockchain, and IoT devices are set to revolutionize RCM practices in the next decade. By automating and optimizing processes, reducing errors, and enhancing patient engagement, these technologies offer the potential to significantly improve the efficiency and effectiveness of RCM. As healthcare organizations continue to navigate the challenges of an ever-evolving landscape, the adoption of these technologies will be critical for achieving Operational Excellence and ensuring financial sustainability. Real-world examples and reports from leading consulting and market research firms underscore the transformative potential of these technologies in RCM. As such, organizations should consider strategic investments in these areas to stay competitive and deliver superior patient care.

Best Practices in RCM

Here are best practices relevant to RCM from the Flevy Marketplace. View all our RCM materials here.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Explore all of our best practices in: RCM

RCM Case Studies

For a practical understanding of RCM, take a look at these case studies.

Reliability Centered Maintenance in Luxury Automotive

Scenario: The organization is a high-end automotive manufacturer facing challenges in maintaining the reliability and performance standards of its fleet.

Read Full Case Study

Reliability Centered Maintenance in Agriculture Sector

Scenario: The organization is a large-scale agricultural producer facing challenges with its equipment maintenance strategy.

Read Full Case Study

Reliability Centered Maintenance in Maritime Industry

Scenario: A firm specializing in maritime operations is seeking to enhance its Reliability Centered Maintenance (RCM) framework to bolster fleet availability and safety while reducing costs.

Read Full Case Study

Defense Sector Reliability Centered Maintenance Initiative

Scenario: The organization, a prominent defense contractor, is grappling with suboptimal performance and escalating maintenance costs for its fleet of unmanned aerial vehicles (UAVs).

Read Full Case Study

Reliability Centered Maintenance for Maritime Shipping Firm

Scenario: A maritime shipping company is grappling with the high costs and frequent downtimes associated with its fleet maintenance.

Read Full Case Study

Reliability Centered Maintenance in Power & Utilities

Scenario: A firm within the power and utilities sector is grappling with frequent unplanned outages and high maintenance costs.

Read Full Case Study


Explore all Flevy Management Case Studies

Related Questions

Here are our additional questions you may be interested in.

What are the key differences between RCM and TPM in terms of implementation challenges and benefits?
RCM focuses on preventing equipment failures through comprehensive training and analysis, offering increased reliability and safety, while TPM emphasizes employee involvement and continuous improvement, leading to operational efficiencies and reduced maintenance costs. [Read full explanation]
How do the initial costs of implementing RCM compare with the long-term savings and benefits it delivers?
Implementing Reliability Centered Maintenance (RCM) involves significant initial costs, including training, software, and planning, but delivers long-term savings and benefits such as reduced maintenance costs, improved asset reliability, and decreased downtime, making it a valuable investment. [Read full explanation]
What impact will emerging regulations on carbon footprint and sustainability have on RCM practices?
Emerging carbon footprint and sustainability regulations are reshaping Revenue Cycle Management (RCM) by necessitating adjustments in Cost Structures, enhancing Operational Excellence, and requiring Strategic Planning to ensure Compliance, optimize Costs, and leverage Sustainability for Competitive Advantage. [Read full explanation]
How can RCM be utilized to optimize inventory management and reduce spare parts costs?
RCM optimizes inventory management and reduces spare parts costs by prioritizing preventive and predictive maintenance, leveraging technology for early detection, and making data-driven stocking decisions, leading to improved Operational Efficiency and cost savings. [Read full explanation]
What role does artificial intelligence play in enhancing the predictive capabilities of RCM strategies?
AI transforms Revenue Cycle Management by improving patient payment predictions, optimizing claim management, forecasting revenue leakage, and enhancing compliance, leading to more efficient and effective financial outcomes. [Read full explanation]
How does RCM align with Total Productive Maintenance (TPM) to enhance overall equipment effectiveness (OEE)?
RCM and TPM alignment improves OEE by combining systematic failure prevention with an inclusive maintenance culture, leading to enhanced equipment reliability, performance, and operational efficiency. [Read full explanation]

 
Joseph Robinson, New York

Operational Excellence, Management Consulting

This Q&A article was reviewed by Joseph Robinson. Joseph is the VP of Strategy at Flevy with expertise in Corporate Strategy and Operational Excellence. Prior to Flevy, Joseph worked at the Boston Consulting Group. He also has an MBA from MIT Sloan.

To cite this article, please use:

Source: "What emerging technologies are set to revolutionize RCM practices in the next decade?," Flevy Management Insights, Joseph Robinson, 2025




Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials

 
"The wide selection of frameworks is very useful to me as an independent consultant. In fact, it rivals what I had at my disposal at Big 4 Consulting firms in terms of efficacy and organization."

– Julia T., Consulting Firm Owner (Former Manager at Deloitte and Capgemini)
 
"My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me "

– Bill Branson, Founder at Strategic Business Architects
 
"FlevyPro provides business frameworks from many of the global giants in management consulting that allow you to provide best in class solutions for your clients."

– David Harris, Managing Director at Futures Strategy
 
"Last Sunday morning, I was diligently working on an important presentation for a client and found myself in need of additional content and suitable templates for various types of graphics. Flevy.com proved to be a treasure trove for both content and design at a reasonable price, considering the time I "

– M. E., Chief Commercial Officer, International Logistics Service Provider
 
"As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor "

– Michael Duff, Managing Director at Change Strategy (UK)
 
"As a consultant requiring up to date and professional material that will be of value and use to my clients, I find Flevy a very reliable resource.

The variety and quality of material available through Flevy offers a very useful and commanding source for information. Using Flevy saves me time, enhances my expertise and ends up being a good decision."

– Dennis Gershowitz, Principal at DG Associates
 
"If you are looking for great resources to save time with your business presentations, Flevy is truly a value-added resource. Flevy has done all the work for you and we will continue to utilize Flevy as a source to extract up-to-date information and data for our virtual and onsite presentations!"

– Debbi Saffo, President at The NiKhar Group
 
"As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value."

– David Coloma, Consulting Area Manager at Cynertia Consulting



Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S, Balanced Scorecard, Disruptive Innovation, BCG Curve, and many more.