Managing the financial health of a hospital or health system requires a constant focus on expenses and revenue optimization. Healthcare finance leaders are tasked with reducing costs while maximizing reimbursement in a complex operational environment.
A significant, opportunity for improvement lies in effective vendor management. Managing a fragmented landscape of multiple single-point solution vendors creates operational friction, data silos and escalating costs.
Consolidating revenue cycle management (RCM) vendors into a unified, EHR-integrated solution set creates a more efficient and financially resilient operation. By aligning complementary tools within the core EHR environment, organizations can reduce the total cost of ownership, lower the cost to collect (C2C), streamline workflows and improve yield from both patients and payers.
Many health systems elect to implement a wide range of vendors to handle various aspects of the revenue cycle, such as patient access, coding, billing and denials management. While targeted solutions can address specific needs, this fragmented approach introduces several operational challenges.
Managing multiple vendor relationships causes significant burdens:
Scattered data across multiple systems hinders effective oversight:
With an increase in vendors comes elevated security risks:
Key Stat: According to a recent FinThrive survey of 100 healthcare finance leaders, 48% of healthcare leaders identified data security as their top concern when assessing a shift to a platform vendor, underscoring the importance of a centralized approach.
Transitioning from multiple point solutions to a unified RCM solution that complements and integrates with a hospital's core EHR directly addresses the challenges of vendor sprawl. This consolidation is a strategic move toward greater efficiency, cost control and financial resilience.
The most compelling argument for vendor consolidation is the direct impact on the bottom line. By streamlining processes, automating tasks and eliminating redundant systems, a unified platform reduces the labor and technology costs associated with RCM.
Health systems leveraging a consolidated RCM platform can lower cost to collect to just under 3%. This represents a full percentage point reduction compared to organizations with a fragmented vendor ecosystem, representing millions of dollars in savings for larger hospitals and health systems.
A holistic solution provides a consistent user experience and standardized workflows across the entire revenue cycle. Staff can operate more efficiently without the need to switch or reconcile data between different systems.
Automation capabilities within an integrated solution can handle repetitive, manual tasks, freeing up employees to focus on higher-value activities like complex denial analysis and patient financial counseling. This not only boosts productivity but also improves employee satisfaction by reducing administrative burdens.
With connected RCM data, a consolidated solution provides unparalleled visibility into performance. Leaders can access comprehensive dashboards and analytics to monitor key performance indicators (KPIs) in real time, from denial rates and accounts receivable (AR) inventory to contract yield and underpayments. This data-driven approach enables more informed decision-making and allows for the proactive identification of trends and performance gaps.
According to FinThrive’s 2025 Transformative Trends survey, integration capabilities and intelligent automation are extremely or very important factors for over 80% of healthcare leaders when considering an RCM platform, demonstrating the high value placed on these features.
The right partner can provide a stable and scalable foundation for future growth. As your organization expands or as regulatory requirements change, consolidating vendors to fewer systems results in less maintenance and total cost of ownership, versus coordinating updates across dozens of vendors. This simplifies long-term strategic planning, reduces concerns about vendor reliability, and reduces the complexity of future implementations.
Embarking on a vendor consolidation journey requires a structured and thoughtful approach. The goal is to partner with an organization that can meet your comprehensive needs while delivering a clear return on investment.
By moving toward a consolidated RCM solution, hospitals and health systems can build a more resilient financial future. The reduction in cost of ownership, combined with improved operational efficiencies and strategic insights, provide a powerful competitive advantage in an increasingly challenging healthcare landscape.
Interested in learning more about how your healthcare organization can lower its cost to collect and be more financially resilient? Our team is ready to help strengthen your bottom line.