Reinvigorated Consolidation in the Revenue Cycle Management (RCM) Sourcing Industry – A US$30 Billion Opportunity

In the post-pandemic era, healthcare providers’ priorities have shifted, with an increased focus on reducing administrative spend, enhancing processes with digital/technology adoption, and prioritizing the integration of Revenue Cycle Management (RCM) operations. This shift has prompted RCM service providers to undertake the inorganic route to quickly develop the capabilities and digital prowess required to serve enterprises’ evolving priorities.

In 2021, Private Equity (PE) investments and M&As in the RCM service provider space surged and included Omega Healthcare’s acquisition of himagine and AccessOne’s takeover of CueSquared. In this viewpoint, we examine the driving factors behind market consolidation, analyze its benefits, and examine how these strategies will evolve in the future.