Switching out legacy IT systems can be a time of change and disruption for healthcare revenue cycle leaders – but it can also be a time of opportunity. While many leaders will look for ways to identify high-performing replacement solutions or even consolidate technologies, dropping a legacy system is also an excellent time to consider outsourcing, especially of medical coding services.
Becker’s recently covered the experiences and thoughts of over 30 leaders, asking them which legacy IT or RCM system they would get rid of [1]. Their answers were illuminating. There was a focus on addressing denials of claims and decision delays, as well as cutting back on friction between payers and providers. One system chief chose to let go of “the outdated charge capture and coding system” because of the tendency to miss billable services – a level of inefficiency that is a direct drain on any organization’s financial health. There was also a recommendation to drop legacy coding systems that still rely on manual input because of the risk of coding errors, denials, and delayed reimbursement. Another interesting recommendation was a strategic quarterly review of the entire RCM tech stack.
When I read these, I see challenges that go deeper than technology. This means that, when revenue cycle leaders look for legacy systems to eliminate, they shouldn’t limit themselves to technology in identifying solutions. Doing this will very likely put them back in the same position they were before. Instead, they should look at the root problem and consider the implications for their broader strategy.
In today’s complex revenue cycle environment, a successful strategy requires optimizing your mix of internal resources, technology, and medical coding outsourcing. During this time of upheaval and change in the industry, I’m looking forward to working with forward thinking leaders who understand this dynamic and are ready to explore all the potential possibilities of medical coding outsourcing.
References
[1] R. Haseman, “Legacy systems 34 leaders are ditching in 2025,” Becker’s Healthcare, 25 February 2025. Available: https://www.beckershospitalreview.com/hit-speaker-series-q-a/legacy-systems-34-leaders-are-ditching-in-2025.html.
Hemant Apte, Chief Executive Officer in
Hemant Apte, Founder & Chief Executive Officer of 3Gen Consulting, is a seasoned executive leader with deep domain expertise in US healthcare management practices. He founded 3Gen Consulting in 2006 and has been instrumental in offering thought leadership to his clients and providing services and solutions that are unique in the market.
