5 Tips for How Hospitals Should Prepare for RCM Automation

Map current workflow pain points: Before automation can deliver results, hospitals must have a clear understanding of where inefficiencies exist in their current revenue cycle processes. RCM is inherently complex, with large teams spanning multiple functions and workflows. That complexity often creates bottlenecks, redundant steps, or inconsistent processes, which in turn lead to longer reimbursement timelines, higher staff burnout, and weaker cash flow.

Mapping out these workflow pain points provides the foundation for a targeted automation strategy. Identifying which steps are highly manual, prone to error, or duplicated allows leaders to prioritize the processes most in need of automation. By visualizing every stage of the claim or authorization workflow, organizations can uncover where delays occur, such as handoffs between departments or payer-specific slowdowns. With this knowledge, automation becomes a tool for precision rather than guesswork, enabling measurable improvements in speed, accuracy, and efficiency.

Assess technology infrastructure and interoperability: A common pitfall in automation initiatives is underestimating the importance of technology infrastructure. Even the most sophisticated automation solutions will falter if they cannot integrate with a hospital’s existing systems. Seamless interoperability with electronic health records (EHRs), payer portals, and other core technologies is essential to avoid costly disruptions or workarounds.

Hospitals preparing for automation should begin by assessing whether their IT environment can support new tools without creating friction. This means evaluating system compatibility, data-sharing capabilities, and scalability. The goal is to ensure that automation can plug into existing workflows rather than force staff to adopt parallel processes. Investing in strong infrastructure upfront reduces risk, accelerates deployment, and sets the stage for sustainable automation growth.

Benchmark key performance metrics: Automation is not a blanket solution; it is most effective when aligned with an organization’s specific performance goals. Benchmarking key metrics before implementation provides the baseline needed to measure progress and determine where automation will yield the greatest return. Typical benchmarks might include cost-to-collect, denial rates, days to authorization, time spent per claim touch, and write-off amounts.

By establishing these benchmarks, hospitals gain clarity on both the pain points and the potential value of automation. Tracking improvements over time also keeps teams accountable and ensures that automation remains tied to tangible outcomes. Ultimately, benchmarking empowers leaders to demonstrate value to stakeholders and refine their automation strategy based on real-world results rather than assumptions.

Evaluate team readiness and change appetite: Technology alone does not guarantee success: People are at the heart of any automation initiative. Hospitals must assess whether staff are ready for change and create a plan to build buy-in across the organization. Resistance is natural, especially in healthcare, where employees are accustomed to established workflows and wary of disruptions.

Preparing the workforce involves transparent communication about the goals of automation, training that equips staff with the skills they need, and opportunities for teams to provide feedback. Hospitals that engage employees early in the process are more likely to see smoother adoption and stronger long-term results. By framing automation as a tool that reduces administrative burden and enables staff to focus on higher-value activities, leaders can help shift mindsets from apprehension to enthusiasm.

Continue to iterate and identify new opportunities: Automation should be viewed as a journey, not a one-time project. Once hospitals begin to see the benefits of automation in certain areas of the revenue cycle, it becomes essential to continually evaluate new expansion opportunities. This iterative approach allows organizations to build on their successes and adapt to evolving challenges, payer requirements, or regulatory changes.

Regularly reassessing workflows ensures that hospitals remain proactive rather than reactive. As technology advances and organizational needs shift, new use cases for automation will emerge — from denial management to patient financial engagement. A culture of continuous improvement ensures that automation is not just implemented, but embedded as a core driver of efficiency, economic sustainability, and patient satisfaction.