AI and automation in revenue cycle management: Must-know trends for 2025

As 2025 unfolds, healthcare organizations face a defining moment in the evolution of revenue cycle management. Mounting financial pressures, persistent staffing challenges, and a renewed focus on patient experience are accelerating the demand for automation and intelligent technology. In this climate, AI-driven platforms are no longer a luxury. Instead, they’re becoming a necessity for survival and long-term efficiency.

To better understand the shifting landscape, we asked three seasoned RCM executives from across the healthcare ecosystem to share their perspective on the key revenue cycle management trends they’re seeing so far this year. From revenue cycle technology to priorities for revenue cycle teams, one thing is clear: AI and automation are redefining what’s possible in healthcare revenue cycle operations.

AI and automation are no longer futuristic concepts

A report from HIMSS and Medscape recently showed that 86% of health systems surveyed already leverage AI in their organizations. From clearing EHR inboxes to using AI scribes for documentation, many healthcare leaders are already seeing meaningful change with new technologies. 

Franco Cardillo, Executive Director of Digital Strategy and Operations at MUSC Health, describes how MUSC’s leadership has shifted their mindset from “how do we hire more people to do these tasks?” to “how can we leverage technology to change what’s possible?” More and more health systems are starting to ask the same question. 

“Forward-thinking health systems are already using AI and automation to reduce administrative drag,” explains Dayne Hoffman, Revenue Cycle Solutions Lead at Notable. “While these tools may not necessarily be standard in the revenue cycle just yet, this is where the momentum is building.”

Survey responses from healthcare executives back that up, with 72% of executives reporting that their highest priority for revenue cycle investment in the next 12 months is technology such as automation and AI.

Reducing administrative burden is already paying off

It’s widely known that administrative burden is one of the biggest challenges facing healthcare right now, but 90% of healthcare leaders report that revenue cycle labor challenges further exacerbate operations. Being understaffed and facing issues like increases in denials can have disastrous financial impacts. Addressing administrative pain points is the first step in transforming the revenue cycle. 

“When we free up staff from repetitive tasks, we create space for strategy, patient service, and financial optimization,” adds Hoffman. “Authorizations, coding, claims scrubbing, and denial management are all ripe for innovation. We aren’t looking to replace people, but to unburden them.” 

Hoffman adds that while clinical leaders are rightly cautious about deploying untested tools at the bedside, the potential impact of AI on the administrative side, where work is manual, repetitive, and often under-resourced, is enormous.

Automating highly manual administrative tasks reduces administrative costs, decreases errors and inefficiencies in vital tasks like billing, coding, and charge capture, and reduces delays due to manual processes.

This affects the revenue cycle in countless ways, from providing improved revenue predictability to accelerated reimbursement timelines and better compliance to maximize reimbursements. Plus, reducing this administrative burden gives teams time and headspace back to prioritize more impactful revenue cycle tasks.

“Everything goes back to the revenue cycle,” says Cardillo. “You can’t do anything that we’re doing with technology if you don’t include the revenue cycle.”

Revenue cycle management is the next proving ground for healthcare innovation 

Beyond general administrative processes, financial challenges associated with revenue cycle management continue to be a top pain point for healthcare executives. Increasing denials are costing hospitals over $20 billion annually; manual processes lead to an average $25 rework cost per denied claim; revenue collection rates dropped by 8.3% year-over-year. The need for innovation is higher than ever.

“Our team is working harder than ever before to collect the revenues we have earned,” says Matt Morgan, Vice President/CFO of Montage Health. With payers becoming more aggressive in denying or delaying payments, RCM leaders are prioritizing strategies to ensure timely, accurate reimbursement. This includes proactive management of documentation and deployment of technology to support appeals and prevent revenue leakage. Why? "Cash is king," explains Morgan.

“Historically, breakthroughs in healthcare have come from the clinical side: new therapies, diagnostics, and devices,” adds Hoffman. “But AI’s first real proving ground won’t be in the exam room, it’ll be in the revenue cycle. This time, the back office might just be the place that drives healthcare forward.”

The rest of 2025 and beyond

As we look to the second half of 2025, it’s clear that those who start implementing AI for revenue cycle management and adjacent administrative tasks will position themselves for success in 2026 and beyond. 

Learn more about how Notable is helping leading health systems transform revenue cycle management here, or visit our booth at the upcoming HFMA Annual Conference.