How to Improve Cash Flow in Healthcare and Optimize EBITDA
Financial pressure is rising across the healthcare landscape—and revenue cycle leaders are being asked to deliver more impact, faster. In our latest webinar, we brought together experts from Finalytics and Revenue Management Solutions (RMS) to share actionable strategies to improve cash flow in healthcare, implement EBITDA optimization strategies, and modernize key elements of healthcare revenue cycle management.
The Finalytics + RMS Partnership
Finalytics and RMS have worked in close partnership for over seven years to help healthcare organizations rethink their revenue cycle strategies. Their joint focus is to deliver technologies and services that improve day-to-day workflows and equip providers with the insight and tools needed to navigate increasingly complex payer environments. Together, they bring a combined depth of technical and operational experience to the challenge of financial transformation in healthcare.
The Financial Landscape: Rising A/R Days, Tight Liquidity, and Labor Pressures
Bryan Irwin (CTO, Finalytics) and Mark Carlson (Director of Product, RMS) opened with a clear overview of the economic pressures facing healthcare organizations:
- A/R days continue to rise, increasing from an average of 43 to 60+ days across many systems. This directly reduces available cash and strains operations.
- Tightened liquidity: Many hospitals now operate with dangerously low days cash on hand, in some cases fewer than 14 days.
- Labor shortages and operational strain: Widespread staffing issues have had a negative effect on financial performance, creating a need to do more with fewer resources.
All of these factors compound to increase the urgency around financial recovery and system modernization.
Monetizing A/R through Segmentation, Prioritization, and Automation
Rather than simply chasing aged claims, the speakers emphasized a more strategic approach: monetizing A/R through segmentation, prioritization, and automation.
Key strategies discussed:
- Revenue segmentation: Identifying what portions of aged A/R are collectible, and focusing resources where recovery is most likely.
- Remittance reconciliation automation: Accelerating the match between remits and payments to reduce lag and free up staff.
- Behavior-based routing: Directing claims based on payer patterns to reduce delays and improve outcomes.
- Dashboards and insights: Providing real-time visibility to help teams prioritize effectively and identify revenue at risk.
EBITDA Optimization Strategies: Smarter Systems, Better Outcomes
Mark and Bryan shared examples of how modern systems can unlock EBITDA gains through:
- Automation of manual workflows, reducing dependency on overburdened staff.
- Payer behavior analysis: Leveraging patterns in payer response times and denial triggers to prevent delays before they occur.
- Data-driven KPIs: Ensuring leadership is tracking the right metrics to drive consistent improvements in collections and operating margin.
These strategies deliver impact without relying solely on headcount increases or cost-cutting measures.
Denial Management Evolved: From Reaction to Prediction
While traditional denial management focuses on appeals, the speakers emphasized a shift toward predictive denial management:
- Payer behavior tracking: Understanding which payers are likely to deny and why.
- Triage and prioritization: Routing high-value claims for immediate attention.
- Collaboration workflows: Engaging clinical and coding teams early to prevent common denial triggers.
This approach minimizes write-offs and accelerates collections while reducing administrative load.
Industry Coverage: Including Dental and Additional Markets
In the Q&A, attendees asked whether these services are available in the dental space. Finalytics confirmed that their sister company, Denalytics, offers the same revenue cycle technology tailored to dental practices. RMS also confirmed its solutions extend to dental, physical therapy, and other specialties where claims submission and remittance management are essential.
Key Takeaways
- A/R monetization and remittance automation are critical to improving cash flow in today’s economic environment.
- EBITDA optimization relies on data, automation, and behavior insights—not just expense reduction.
- Payer behavior analysis is essential to proactive denial management and financial forecasting.
- Modern healthcare revenue cycle management must align people, process, and platforms to succeed.
Ready to take the next step?
If you’re looking to unlock more cash, reduce A/R friction, or explore EBITDA optimization strategies, we’d love to connect.
Contact us here to schedule a follow-up conversation or request tailored insights from the webinar.
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