Does Your Physician Group Need a New RCM Service Provider?

Does Your Physician Group Need a New RCM Service Provider

An underperforming revenue cycle management (RCM) provider can quietly disrupt reimbursement, raise compliance exposure and limit a physician group’s ability to expand. Deciding whether a physician group needs new RCM services begins with tracking measurable problems, such as rising claim denials and recurring coding inaccuracies. For multi-specialty groups managing varied payer rules, those patterns often show whether a provider keeps pace.

Underperforming RCM Partners Escalate Costs

Multi-specialty physician groups face complex billing requirements because each specialty brings its own coding rules, payer policies and reimbursement procedures. An RCM provider that struggles with those differences can create recurring administrative costs and financial uncertainty across the group’s specialties and locations.

Small breakdowns in billing accuracy or payer follow-up can compound over time, pulling administrative teams into rework and slowing the cash flow that supports expansion into new locations and service lines. Recognizing those consequences early makes the warning signs that follow easier to spot and act on.

Climbing Claim Denial Rates Are a Warning Sign

Rising claim denial rates can point to problems with eligibility verification, coding accuracy or an RCM provider’s ability to follow specialty-specific payer requirements. The American Academy of Family Physicians notes that denial rates commonly fall between 5% and 10%, while figures below 5% represent a stronger target.

Because denial rates vary by specialty, payer mix and measurement method, those figures work best as general reference points. Physician groups should monitor initial denial rates. These capture submissions that were initially rejected, and providers should assess whether they correct underlying problems rather than repeatedly resubmitting the same claims without a change in outcome.

Expanding Days in Accounts Receivable Signal Trouble

Increasing days in accounts receivable (A/R) show that physician groups are waiting longer to collect payments, potentially due to delayed claim submissions or inadequate payer follow-up. That delay can strain cash flow across multiple locations. The Healthcare Financial Management Association suggests that the ideal A/R time falls within 30-40 days, although performance varies by payer and specialty.

The same guidance indicates that balances older than 90 days should generally account for less than 10% of insurance receivables, while self-pay balances may follow a separate benchmark of under 30%. Multi-specialty groups should examine A/R aging by payer, specialty and location to confirm that providers are resolving outstanding balances before they become difficult to collect.

Coding Errors Put Revenue and Compliance at Risk

Incorrect code selection, undercoding and upcoding can cause claim denials and compliance concerns across specialties with different documentation requirements. The Office of Inspector General at the U.S. Department of Health and Human Services describes upcoding as a common type of false claim, and repeated errors of any kind may reveal weaknesses in coder training, quality assurance or specialty expertise.

Meanwhile, a 2024 study found global medical coding error rates ranging from 7% to more than 25% and pointed to coder training and clinician-coder collaboration as ways to improve accuracy. The review attributes that wide variation to differences in coder expertise, documentation quality and system design.

Partnering With Global Healthcare Resource for Reliable RCM Support

Among RCM partners that serve multi-specialty physician groups, Global Healthcare Resource provides cost-effective support through medical coding and billing teams that operate as an extension of each client’s team. Unlike many of its competitors, Global Healthcare Resource does not subcontract any of its work, and partner organizations receive a dedicated team, built around their unique needs, that works solely on their project.

In business for 25 years, the company has worked with organizations in nearly every specialty across the U.S. and proudly employs more than 6,000 coders, billing professionals and call center agents. Its staff trains in the Global Academy, a rigorous internal training program that prepares employees for the complexities of RCM, American culture and the U.S. healthcare system.

For groups concerned about recurring coding errors, Global Healthcare Resource reports a 98% coding accuracy rate. In-house and external compliance experts audit its coding performance against Current Procedural Terminology, International Classification of Diseases 10th Revision, Healthcare Common Procedure Coding System and diagnosis-related group guidelines.

Understanding Why Compliance Vigilance Still Matters After Switching

Changing RCM providers does not eliminate a physician group’s responsibility for billing compliance, particularly as specialty-specific rules and payer requirements change. Documented corrective actions, shared compliance reviews and routine internal coding audits help providers spot irregular billing patterns before they grow into larger financial or regulatory problems.

Medical coders have a unique responsibility to detect billing and coding compliance issues because they review documentation and assign codes directly, often making them the first to notice irregularities. The American Academy of Professional Coders points to improper unbundling, medically unnecessary billing and unusually high service utilization as patterns that warrant further review before they grow into costlier financial or regulatory problems.

Groups can reinforce accountability by setting clear reporting expectations, audit procedures and responsibility for correcting identified issues with whichever provider they select. Defined reporting schedules and timelines for corrective actions directly tie ongoing compliance monitoring to the broader decision to choose an accountable RCM partner.

Choosing an RCM Partner Built for Multi-Specialty Growth

Persistent claim denials, increasing A/R days, recurring coding errors and weak compliance oversight can indicate that an RCM provider no longer meets a physician group’s operational needs. Physician groups should compare their provider’s measurable performance and ability to support future growth before deciding whether to switch. A candid review of the current RCM partnership against those benchmarks can clarify whether a change would serve the group’s long-term goals.

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