Unlocking $20M+ in Value Ahead of Revenue Cycle Management Outsourcing
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juillet 03, 2025
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Understaffed and underperforming due to increased turnover within its revenue cycle management (“RCM”) function, a multi-hospital health system was considering an outsourcing solution and needed to improve performance and operations ahead of the transition to secure the best rates and reduce long-term fees. FTI Consulting was engaged to quickly identify targeted areas within the organization’s hospital and physician billing accounts receivable (“A/R”) to drive cash performance and lower denials, while simultaneously providing management advisory to support RCM leadership to improve operations ahead of outsourcing negotiations.
- FTI Consulting resolved $48.6 million of aged A/R, successfully closing 83.3% of the dollars and 85.0% of the accounts assigned.
- Our client collected $10.9 million against an overall goal of $7 million, thereby exceeding the cash goal by 57% and resulting in a 9:1 ROI.
- Our experts generated vendor savings of more than $1 million recurring annually and set organizational KPI and cash targets aligned with industry best practices.
- FTI Consulting facilitated an annual net revenue improvement of $2.7 million for our client from write-off reduction and fee schedule optimization.
Our Role
- FTI Consulting created workgroups to implement new policies, streamline processes and document RCM process flows to ensure a smooth transition to the chosen outsourcing vendor.
- Our healthcare management experts established RCM performance dashboards to provide client leadership with weekly insights into cash collections and KPI metric performance.
- The team completed a customer data management (“CDM”) pricing review for hospitals and physicians against Commercial/Medicare Advantage fee schedules to identify a combined net revenue opportunity of $1 million.
- FTI Consulting supported and strengthened contract negotiations and KPI baseline calculation for our client’s RCM outsource vendor transition, resulting in fee savings of $1.2 million.
Related Information
Published
juillet 03, 2025
Key Contacts
Senior Managing Director, Leader of Healthcare Business Transformation
Managing Director