RCM staffing and workforce management encounter various challenges in navigating staffing trends in today’s dynamic labor market. As organizations grapple with the shortage of revenue cycle staffing services and evolving workforce dynamics, the risks associated with keeping medical billing teams in-house are becoming increasingly apparent. In this article, we dive into key trends shaping RCM staffing trends in the US health service RCM sector. Further, we shed light on factors such as millennial engagement, post-COVID behaviors, remote work preferences, and retention rates. Amidst these trends, the argument for outsourcing healthcare billing and staffing operations gains momentum. Outsourcing offers a strategic solution to reduce risks and improve performance in an industry ripe for transformation.
Workforce Dynamics in RCM Staffing
Millennial Engagement
In the modern age, the RCM sector faces significant challenges in attracting and retaining talent, particularly due to millennial behavior patterns exacerbating the situation. Millennial engagement stands as a pivotal concern, with a stark gap between the demand for RCM staffing and millennials’ inclination to pursue careers in the health service sector.
According to PwC, merely 10% of millennials view health services as their first-choice industry, citing perceived complexity and limited career growth prospects as barriers. This reluctance to enter the field contributes to the growing talent gap within RCM departments, increasing the strain on internal billing operations.
Retention Challenges
Retention challenges further compound the issue of RCM staffing and workforce management. The American Association of Healthcare Administrative Management (AAHAM) demonstrates that turnover rates are as high as 25%–35% among revenue cycle staffing services.
This high turnover not only breaks functional flow but also increases hiring costs and impedes productivity. The pandemic-induced shift towards remote work sparked post-COVID behavior among medical billing teams, intensifying the dilemma. Mercer’s survey highlights a sizable shift, with over 70% of healthcare billing staff seeking more flexibility and work-life balance. RCM team members increasingly prefer remote work because it offers greater flexibility and work-life balance.
Skill Shortages and Employee Development
Skill Shortages in RCM Staffing Services
Within the healthcare RCM sector, managing skill shortages presents a tough challenge for organizations opting to manage medical billing in-house. According to the Healthcare Financial Management Association (HFMA), 68% of health service entities struggle to fill revenue cycle positions, highlighting the shortage of skilled RCM staff.
Organizations struggling with skill deficits face functional inefficiencies, higher error rates, and compromised revenue streams. This is due to scarce and trained skills in medical billing software, knowledge of regulatory compliance, and navigating changing industry standards.
Competitive Salary & Focus on Development
Competitive salaries and benefits exert additional strain on internal RCM operations. The escalating demands for skilled professionals are fueling the need to meet them amid the rising cost of living. According to the Bureau of Labor Statistics, RCM staff earn a median annual wage that is notably lower than that of competing industries.
This reflects the financial burden of attracting and retaining top RCM talent. In response to these challenges, medical practices are increasingly shifting their billing staffing focus towards two key areas. Training and development initiatives and working with reliable outsource vendors are among these key initiatives. Healthcare Information and Management Systems Society (HIMSS) reports that 82% of health service entities are increasing investment in training programs and outsource engagements. These measures are in response to fixing skill shortages and increasing retention.
TECH Advancements and Operational Strategies
Automation and Technology Adoption
In the healthcare RCM sector, automation and technology adoption highlight the need for expertise in data analytics, artificial intelligence (AI), and machine learning (ML). Accenture’s insights reveal that using AI has the potential to elevate efficiency by 10-15%. This could offer unique opportunities for functional improvements and revenue increases for the medical billing teams.
However, navigating the complexities of technological integration poses substantial challenges for medical billing in-house. External partners play a pivotal role in facilitating seamless technology adoption and harnessing its transformative potential by meeting the demand for skilled RCM staff proficient in cutting-edge technologies.
Outsourcing Revenue Cycle Staffing Services
The growing prevalence of outsourcing and offshoring within the health services sector reflects a strategic response to RCM staffing shortages. Grand View Research’s projections highlight the growth of the global RCM outsourcing market to reach $45.5 billion by 2025.
Healthcare billing staff outsourcing to a reliable vendor eases talent acquisition and offers specialized expertise and scalable resources. Health services entities can improve cost structures and explore staffing challenges by using outsourcing partners’ diverse skill sets and functional efficiencies.
Employee Well-being in RCM Staffing
RCM Workforce Management & Well-being Initiatives
Prioritizing workforce well-being initiatives emerges as a critical need for health services organizations. Deloitte’s survey highlights this trend, with 80% of organizations actively investing in mental health programs. However, implementing and managing comprehensive well-being initiatives poses practical and capacity challenges for internal RCM staffing and workforce management.
Balancing employee welfare and operational demands underscores the value of working with a reliable revenue cycle management vendor. Utilize external expertise to build your medical billing team. This will enhance employee engagement, productivity, and retention in a supportive work environment.
Remote Work Preferences & Hybrid Work
FlexJobs’ study highlights that millennials out of the healthcare billing staff prefer remote work, with 83% perferring full-time remote positions. Hybrid work models, consequently, gain attention as healthcare RCM organizations are willing to accommodate diverse work preferences while maintaining functional efficiency.
Several findings confirm this trend, with 72% of organizations adopting hybrid work post-pandemic. Hybrid work arrangements in revenue cycle staffing services pose practical and administrative challenges. This further complicates internal RCM operations.
Workforce Management with Invent HealthMatics
In today’s changing labor market, having a successful internal RCM team demands significant time, commitment, and investment. We’ve developed staffing models through years of experience, understanding modern employee behavior, and implementing successful retention strategies. You don’t have to explore staffing complexities alone. Use Invent HealthMatics‘ expertise until you master your staffing model. This ensures guaranteed success for your medical practice.
References
Agovino, T. (2024, February). Reimagining the Office for the Hybrid Age. Retrieved from https://www.shrm.org/: https://www.shrm.org/topics-tools/news/all-things-work/reimagining-office-hybrid-age#:~:text=Nearly%20three%2Dquarters%20of%20companies,Workers%20want%20that%20flexibility.
