Surviving RCM Staff Shortages: Why Outsourcing Is the Smartest Move for 2026

The healthcare industry is facing one of its toughest challenges—a serious shortage of qualified Revenue Cycle Management (RCM) professionals.

In 2024, more than 63% of healthcare providers reported ongoing staff gaps in their billing and RCM departments, while 41% of roles in claims and billing operations were more than half vacant, according to the Medical Group Management Association (MGMA)

These numbers reveal how deeply staffing shortages are impacting the financial backbone of healthcare organizations.

At the same time, the demand for RCM outsourcing is rising at a rapid pace. The global medical billing outsourcing market size was estimated at USD 14.90 billion in 2024 and is projected to reach USD 44.30 billion by 2033, growing at a CAGR of 13.06% from 2025 to 2033, based on data from Grand View Research

So, what does this mean for healthcare organizations struggling to keep their revenue cycle running smoothly? Can in-house teams alone handle the increasing complexity of billing, compliance, and collections amid staff shortages and growing administrative pressure?

This blog will talk about how healthcare organizations can survive the ongoing RCM staffing crisis and why outsourcing is the smartest move for 2026.

Key Challenges of In-House RCM

In-house RCM operations depend heavily on skilled billing and coding staff. However, as workforce shortages grow across the healthcare industry, maintaining adequate staffing has become increasingly complex. When internal teams are stretched thin, it leads to slower claim processing, more denials, and higher burnout rates. As a result, many healthcare organizations are struggling to balance workload, efficiency, and revenue performance under staffing constraints.

• Persistent Staff Shortages and Workforce Burnout

The healthcare billing workforce has been shrinking due to rising turnover, retirements, and fewer new professionals entering the field. As a result, existing RCM teams are forced to handle excessive workloads which lead to fatigue and reduced accuracy. In fact, burnout becomes inevitable, resulting in more errors, absenteeism, and resignations. This creates a cycle where staff shortages continue to deepen and further weaken revenue cycle stability.

• Increased Training and Skill Gaps

As payer regulations and coding guidelines evolve, continuous staff training becomes essential. But training takes a backseat and knowledge gaps widen when teams are already short-staffed. Therefore, employees struggle to keep pace with complex payer rules or technology updates. Over time, this reduces claim accuracy, delays reimbursements and undermines the efficiency of in-house RCM operations.

• Rising Administrative Workload

With fewer employees available, the administrative workload piles up. Staff must juggle coding, billing, denial management and patient follow-ups simultaneously. Consequently, important tasks such as denial appeals or reconciliation get delayed, affecting revenue flow. The lack of division of responsibilities also reduces focus and precision which leads to missed opportunities for maximizing reimbursement and minimizing claim backlogs.

• Low Staff Morale and Productivity

Constant pressure, long hours and unrealistic performance expectations diminish staff morale. In fact, employees feel overworked and undervalued which leads to disengagement and lower productivity. Moreover, error rates rise and overall team collaboration suffers as morale drops. Therefore the healthcare organization experiences a gradual decline in both performance quality and employee retention within the RCM department.

• Technology Underutilization Due to Staffing Gaps

Even when advanced billing software and automation tools are available, understaffed teams often lack the time or expertise to use them effectively. As a result, many of the system's capabilities remain idle. Without proper supervision or technical management, automation tools cannot deliver full value and manual processes continue to dominate to keep productivity lower than potential.

• High Turnover and Recruitment Challenges

Recruiting skilled billing and coding professionals has become time-consuming and expensive. The demand far outweighs the supply, pushing hospitals into prolonged hiring cycles. Consequently, positions remain vacant for months, and the workload burden falls on the remaining employees. In fact, the recurring need to hire, train, and replace staff creates instability and makes long-term RCM management unsustainable.

Why is the Outsourcing RCM Smart Move for 2026?

Keeping in mind the ongoing staffing crisis in healthcare billing, outsourcing RCM has emerged as a practical and strategic solution. It enables hospitals to overcome workforce shortages, maintain operational efficiency, and improve financial outcomes without the constant struggle of recruiting and retaining in-house employees.

• Instant Access to Skilled Professionals

Outsourcing connects providers with large teams of experienced billing and coding experts who are readily available to manage all revenue cycle functions. These professionals stay updated on payer requirements and industry regulations. Therefore, healthcare organizations can immediately fill staffing gaps and ensure seamless operations without delays or training interruptions caused by employee turnover or absences.

• Reduced Hiring and Training Burden

With the outsourcing of medical billing and coding services, healthcare organizations no longer need to recruit, onboard or continually train internal staff. The outsourcing partner assumes full responsibility for maintaining a skilled workforce. As a result, providers can redirect time and resources toward patient care and strategic goals rather than administrative hiring tasks to ensure consistent RCM performance even during staffing shortages.

• Maintained Productivity During Turnover

Employee turnover often disrupts in-house billing cycles, but outsourcing ensures an uninterrupted workflow. Third-party RCM companies maintain cross-trained teams that handle transitions seamlessly. As a result, productivity levels remain stable, claims are processed on schedule, and cash flow remains unaffected, even when the provider's internal workforce faces sudden departures or extended leaves.

• Access to Specialized Expertise and Technology

Outsourcing medical billing and coding service providers combine human expertise with advanced tools like robotic process automation, AI-driven claim scrubbing and denial analytics. These resources are managed by skilled professionals trained to maximize efficiency. Therefore, healthcare organizations gain both technology and expert oversight to handle high claim volumes and complex payer requirements efficiently without hiring additional staff.

• Improved Staff Morale and Focus

When routine RCM tasks are outsourced, internal employees can focus on higher-value activities such as patient engagement and service improvement. This reduces stress and workload for front-office teams which helps improve morale and retention. As a result, the overall work environment becomes more positive, and staff productivity increases across the hospital.

• Scalability Without Staffing Pressure

Outsourcing allows healthcare providers to easily scale RCM operations based on patient volume or seasonal demand without hiring additional employees. The outsourcing partner adjusts team size and workload dynamically. As a result, hospitals can manage growth smoothly and maintain revenue stability even when facing unpredictable staffing or workload fluctuations.

• Sustainable Cost Efficiency

Healthcare organizations eliminate expenses related to recruitment, salaries, benefits, and turnover by outsourcing medical billing and coding services. Instead, they pay a performance-based fee that aligns with collections and claim volume. Therefore, outsourcing transforms RCM into a predictable, cost-effective model that reduces financial pressure while maintaining consistent billing performance despite ongoing workforce shortages.

Outsourcing to 24/7 Medical Billing Services

In a time when RCM staffing shortages continue to disrupt healthcare revenue cycles, 24/7 Medical Billing Services has positioned itself as a trusted partner for stability, precision and growth. The company goes beyond traditional outsourcing by offering proactive revenue management support that fills every gap caused by workforce limitations.

In fact, 24/7 MBS operates through a results-driven model with a focus on measurable improvements such as reduced denial rates, accelerated collections and optimized claim turnaround time. Their workforce is not just skilled in coding and billing but trained to understand the unique operational flow of each healthcare organization. This collaborative approach allows providers to retain visibility and control while gaining the efficiency of a fully staffed, high-performance RCM department operating round the clock.

Ultimately, outsourcing to 24/7 Medical Billing Services is a step toward building a more efficient, tech-enabled, and future-ready revenue cycle system. Our team can help healthcare providers achieve financial resilience and operational excellence in 2026 and beyond by blending expert manpower with intelligent automation and transparent performance management.

FAQs

Q1. How quickly can outsourcing improve revenue collection?

Many providers see faster claim processing and reduced accounts receivable within months.

Q2. Is outsourcing RCM cost-effective for large hospitals?

It reduces overhead costs and hidden expenses like turnover and training.

Q3. Can outsourcing integrate with existing EHR systems?

Most RCM partners seamlessly integrate with platforms like Athenahealth.

Q4. Is outsourcing a long-term solution or a temporary fix?

It is a sustainable strategy for financial resilience and consistent RCM operations.