Hospitalogy

🏥 The Problem With Rev Cycle

Blake Madden · MAR 3

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Happy Tuesday Hospitalogists,

Today we’re hearing from Hospitalogists about getting the revenue cycle on track, I’m breaking down the “2026 Rural Health State of the State,” plus spicy takes from ep of the pod (featuring the OG himself: my dad), and an upcoming executive briefing on the state of healthcare finance.

Whew. That’s a lot.

Enjoy!

ASK HOSPITALOGY

Getting Your Revenue Cycle On TrackCopy anchor linkCopied

What do you see is the biggest problem in getting your revenue cycle on track? 

THE SEPARATION TAKE

Anonymous

 

“The biggest problem isn't the revenue cycle systems themselves. It's that we've got clinical, financial, and administrative teams operating in separate worlds. Our doctors don't understand how their documentation affects billing. Our billing staff doesn't understand the clinical pressures. And leadership isn't talking to the people doing the work.

 

Buying new software or hiring consultants to ‘fix’ things is treating symptoms. The real issue is we've lost sight of the fact that healthcare is fundamentally about relationships… between caregivers and patients, yes, but also between departments. Until we break down these silos and get everyone understanding how their piece affects the whole, we're just rearranging deck chairs.”

THE INTERNAL SILOS TAKE

Nathan Kaufman - Managing Director

 

“The biggest problem is internal silos, and focus on process vs results in large hospitals and lack of resources to deal with the complexity of the system for smaller hospitals and physicians offices. Select for-profit health systems have amazing RCMs because they are focused.”

THE OWNERSHIP TAKE

Anonymous

 

“The biggest problem in getting the revenue cycle on track is that no one actually owns the end-to-end economic outcome.

 

RCM is still managed in silos: front-end access, HIM, coding, billing, denials, managed care, finance. Everyone optimizes their slice, but very few leaders are accountable for how decisions upstream show up as cash downstream. So we keep fixing symptoms — faster coding, better work queues, more automation — without addressing the structural handoffs that create leakage in the first place.

 

What is working right now is targeted automation tied to very specific pain points: eligibility, charge capture, denial prevention, and follow-up where ROI is measurable and accountability is clear. Ambient documentation, selective AI in coding and CDI, and denial analytics actually move the needle when they’re embedded into operations, not bolted on.

 

What’s not working is the belief that a new platform or outsourcing partner will fix RCM without changing incentives, workflows, or leadership models. RCM problems are operating model failures. And until health systems treat revenue like a system instead of a department, progress will stay incremental.”

THE SYSTEMIC ISSUES TAKE

Anonymous

 

“We need to view revenue cycle challenges less as a billing problem and more as a systems thinking and communication problem. The real issues are cultural and interpersonal. We need to be focusing on fixing systemic communication breakdowns and siloed thinking rather than just technical or process issues.”

 

Hospitalogy members can join this discussion here. Not a member yet? Apply to join here.

BLAKE’S BREAKDOWN

The “2026 Rural Health State of the State” Copy anchor linkCopied

Chartis’s annual assessment of the U.S. rural health safety net focuses on the current financial and operational stability of rural hospitals and trends in access to critical care services in rural communities.

 

Also included in this year’s edition is a look at the potential impact of the $50B RHT funding initiative and a summary of the tech and innovation priorities listed in state RHT applications.

Key TakeawaysCopy anchor linkCopied

  • Over 40% of rural hospitals operate at a loss; that number rises to over 50% in states that have not expanded Medicaid.
  • 417 rural hospitals are considered vulnerable to closure.
  • 300+ rural hospitals have eliminated obstetrics services, 300+ have stopped offering general surgery, and 450+ no longer provide chemotherapy.
  • 89% of rural census tracts are designated Behavioral Health Professional Shortage Areas (HPSAs), and in 13 states, that figure is 100%.
  • States’ RHT plans emphasize telehealth, AI, interoperability, and clinically integrated care models. Eight RHT applications mentioned CON reform.

Read the full report here.

PODCAST HIGHLIGHT

The Healthcare Year In ReviewCopy anchor linkCopied

Episode 3 of my new podcast featured a real cast of characters… my dad, Clete Madden, and the JTaylor Podcast Crew, including Herd Midkiff, Kyle Kirkpatrick, and Anna Brewer.

 

If it feels like healthcare keeps “solving” the same problems with shinier tools, this is the conversation that gets right to the why.

 

The 5 of us break down what’s actually changing (AI adoption getting real, consumer expectations rising, the deal market re-accelerating), and what’s about to get messier (Medicaid/ACA changes, 340B economics, Medicare Advantage’s growing gravitational pull).

 

It’s part year-end reckoning, part 2026 forecast, with a few spicy detours on GLP-1s, cash-pay “parallel” systems, and who really controls innovation: the people or the payors.

 

Check out the episode and subscribe to the podcast here.

 

I also encourage you to subscribe to the JTaylor Healthcare Podcast.

UPCOMING EVENT

Executive Briefing: State of Healthcare FinanceCopy anchor linkCopied

On March 27, 2026 at 12:00 PM CDT, join Herd Midkiff and Kyle Kirkpatrick from JTaylor for an executive-level review of the current state of healthcare finance, hosted by yours truly.

 

We’ll be examining the key factors influencing financial performance across hospitals and health systems, covering:

  • Healthcare spending and utilization trends
  • Reimbursement dynamics and cost pressures
  • Federal price transparency regulations and how this data can inform decision-making
  • Legislative considerations and potential revenue impact
  • Key takeaways for navigating today’s healthcare finance environment

This is a can’t-miss event for leaders shaping financial strategy across hospitals and health systems. Register here.

ON YOUR RADAR

  • Read: This is a good example of getting healthcare marketing right by truly knowing and addressing your audience’s needs. Nemours Children’s Health’s website, KidsHealth, recently surpassed 6B+ views and ranks 1st for children’s health. Read the story from Becker’s Health IT. 
  • Resource: Timely behavioral health referrals matter. Download this case study to see how a regional health plan used NeuroFlow to boost completed referrals by 68% and speed appointments by 36%.*

  • Breakdown: AI investment in healthcare exceeded $18B in 2025 (US and European VC investment), according to the latest Healthcare Investments and Exits report from Silicon Valley Bank. 2025 saw more AI healthcare deals over $300M than in any prior year. Read more.

*This read is brought to you by one of my brand partners who help make this newsletter possible!

That’s it for today. I would love to know your thoughts!

– Blake

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Written by Blake Madden

By Blake Madden

Hospitalogy

The weekly read for the people running the business side of care delivery.