A deep dive into a new RCM tech adoption model

The Revenue Cycle Management Technology Adoption Model from HFMA and FinThrive generates insights and optimizes technology investments. Kim Waters, an RCM consultant at CereCore, offers a comprehensive look at the tool.
By Bill Siwicki
10:54 AM

Lucy, and her best friend Kim Waters, principal, advisory services, at CereCore

Photo: Kim Waters

The Revenue Cycle Management Technology Adoption Model (RCMTAM) is a peer-reviewed, five-stage framework from the Healthcare Financial Management Association and FinThrive that assesses operational performance and the maturity of revenue cycle technology within a hospital or health system. This model serves as the industry's first data-driven benchmarking tool designed to guide revenue management leaders through technology modernization.

It sets new industry metrics and links technology adoption with financial outcomes to help revenue cycle leaders build customizable roadmaps for their organizations.

RCMTAM is vendor- and EHR-agnostic. This ensures healthcare organizations can tailor digital modernization plans regardless of their current revenue cycle management vendor landscape. Key features of RCMTAM include:

  • A five-stage model designed to help health systems assess their current state of RCM technology maturity.
  • Financial benchmarks to measure an organization's performance against peers at the highest stages of the model.
  • Ability to correlate RCM technology adoption to financial performance.
  • A personalized organizational roadmap tailored to each organization's unique needs and objectives.

HFMA and FinThrive are not the only organizations with technology adoption models. HIMSS, for example, parent company of Healthcare IT News, offers models such as EMRAM for electronic medical records, AMAM for analytics maturity and INFRAM for infrastructure adoption, among others. (Learn more about them here.)

Kim Waters is a principal advisory consultant at CereCore, which provides IT and application support, technical professional and managed services, strategic IT consulting and advisory services, and EHR consulting to hospitals and health systems. Waters consults with hospitals on revenue cycle technology strategies and is responsible for assisting clients with strategic planning, governance and program development framework needed to align and implement key initiatives.

Waters is fluent in RCMTAM. So, Healthcare IT News sat down with her for a deep dive.

Q. How does analysis of the revenue cycle technology stack using RCMTAM work?

A. While RCMTAM can be completed directly through HFMA's website, CereCore offers a two-day onsite RCMTAM assessment and performance readout to facilitate discussions around current people, process and technology.

We facilitate discussions with revenue cycle teams on the use and effectiveness of the technology deployed from patient access to mid-cycle, to back office, to analytics, and automation. This allows for a comprehensive review of RCM technology.

Teams often have differing perspectives on the effectiveness and satisfaction of a technology based on how they engage with the tool within their phase of the revenue cycle. During these discussions, key pain points are brought to the surface and taken into consideration when developing the final modernization roadmap.

The RCMTAM assessment typically entails collaborative discussions, multi-perspective evaluation, performance analysis and pain point identification. This structured approach sets the foundation for a tailored RCMTAM assessment, ensuring the resultant modernization strategy addresses the organization's unique needs and challenges in revenue cycle management.

Then, insights gathered are synthesized and presented to key stakeholders. This is designed to create alignment and provide a comprehensive view of the organization's RCM technology status.

First, a presentation of the organization's current maturity stage on the RCMTAM scale. This includes a process map review, three-year modernization roadmap, benchmark comparison, and discussion and alignment.

By providing these comprehensive insights and fostering meaningful discussions, the onsite assessment process sets the stage for informed decision making and strategic planning in technology adoption. It empowers healthcare organizations to move forward with a clear, data-driven strategy for optimizing their revenue cycle through targeted technology investments and process improvements.

Q. You say RCMTAM has proven to be a strategic assessment tool for health systems. Please elaborate with a specific example of where it was proven.

A. Initial analysis reveals the majority (42%) of health systems are at Stage 1 of the RCMTAM indicating a significant opportunity for improvement and transformation in RCM technology adoption. According to internal estimates, the average health system uses more than 30 vendors across RCM functions.

With hundreds of vendors listed in the industry's "RCM companies to know" lists, there are an inordinate amount of technologies for financial leaders to consider. Here are three specific examples of outcomes using RCMTAM.

First, vendor consolidation at Pennsylvania Mountains Hospital Alliance. RCMTAM allows a framework for application rationalization and vendor consolidation across the revenue cycle. The insights gained have helped this organization evaluate current vendor relationships and identify opportunities for consolidation or expansion. This has led to more strategic partnerships and potentially better negotiating positions with technology vendors.

Second, prioritizing and planning for technology modernization at Surgery Partners. At CereCore, we leverage RCMTAM as an opportunity to bring together financial, clinical and IT teams to ensure continuity, effective change management and reliable information governance. At Surgery Partners, alignment across teams that impact the revenue cycle has been key to optimizing financial outcomes through targeted technology investments.

And third, supporting technology transformation at all maturity levels at the University of California San Diego. New leaders coming into organizations have found the RCMTAM to be a valuable assessment allowing them to quickly understand the existing use and effectiveness of technology and processes across their organization. They have used the exercise to identify areas of accomplishment and where changes need to be made and determine where new applications could improve efficiency and effectiveness.

Q. What kind of value do health systems get from generating new data insights when using the RCMTAM model?

A. RCMTAM provides a valuable tool for health systems to assess and prioritize RCM technology modernization initiatives. The model's structured approach serves as a compass for health systems to navigate the intricate terrain of technology modernization.

By unlocking new data-driven insights, RCMTAM also empowers revenue cycle leaders to make strategic decisions, streamline operations and enhance their financial performance. This framework is particularly valuable in the current healthcare landscape, where mounting financial pressures have positioned revenue cycle as a top investment priority.

RCMTAM's ability to generate clear and actionable insights optimizes technology investments, ultimately leading to improved financial health and operational efficiency in an increasingly challenging economic environment. Specific value areas include:

  • Strategic planning and prioritization
  • Financial performance optimization
  • Workflow efficiency and automation
  • Continuous improvement framework

Follow Bill's HIT coverage on LinkedIn: Bill Siwicki
Email him: bsiwicki@himss.org
Healthcare IT News is a HIMSS Media publication

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