Workforce shortages have plagued US healthcare since COVID-19 disrupted operations nationwide. Mercer's research indicates that by 2026, the country could face a deficit of roughly 3.2 million healthcare workers. 

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Recent events, such as the Great Resignation in 2021-2022, visa restrictions and bans imposed by the government, and the scarcity of local talent and retention challenges, have been the major causes. It is also important to note that as of 2025, immigrants account for around 20% of the country’s healthcare workforce.  All this has created significant staffing gaps across hospitals, clinics, and other healthcare facilities in the US.

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This blog explores how RCM outsourcing services can help healthcare providers tackle staffing challenges.  

Factors Fueling the US Healthcare Staffing Crisis

It is crucial for healthcare leaders to understand the root causes of this crisis in order to develop a sustainable solution. Let us look at four major factors: 

Burnout

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COVID-19 pushed healthcare workers past sustainable limits. Nurses and support staff found themselves working longer shifts while caring for far more patients than usual. The consequences are measurable: 32% of physicians and 47% of hospital nurses now report severe burnout. Many seasoned professionals have simply walked away, choosing retirement over continued exposure to these stressful conditions. This has left healthcare systems without critical institutional knowledge.

High Labor Costs

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A majority of the healthcare organizations are finding it increasingly challenging to retain their healthcare staff due to a host of reasons. These include offering a competitive salary, fixed and variable bonuses, and other benefits, while also matching market expectations, which can result in recurring staffing gaps. 

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At present, labor-related expenses such as salaries, benefits, and other associated costs account for around 56% of total hospital costs. And with the ongoing staffing crisis, healthcare organizations are compelled to offer attractive wages to bridge the staffing supply-demand gap. According to the Bureau of Labor Statistics, healthcare wages have increased significantly faster than general inflation rates over the past four years, highlighting the increasingly unsustainable labor costs landscape in the US. 

Immigration Policies

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Recent immigration policies have significantly impacted the healthcare staffing crisis, particularly in revenue cycle management roles. Visa restrictions and deportation concerns have created immediate staffing gaps in medical billing, coding, and claims processing departments.

Personal care services are expected to grow at a CAGR of around 10-12% and the US healthcare system is expected to fall short of around 100,000 healthcare workers by 2028. This will create a notable supply-demand gap. Further, the lack of local talent in several regions of the US has played a key role in increasing the number of unstaffed roles and critical vacancies. 

The Hidden Cost: How Staffing Shortages Devastate Revenue Cycles

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While patient care impacts are immediately visible, staffing shortages create equally damaging effects on healthcare organizations' financial health.

• Frequent staff changes and lower retention lead to billing inaccuracies and reduce operational efficiency. In fact, despite technological advancements, pre-authorization continues to remain a labor-intensive affair, averaging around $40-50 per submission for private payers and $20 to $30 for providers.  Labor-related costs account for 90% of that, indicating the impact of staffing shortages on administrative expenses.
  
  
• Administrative accuracy suffers significantly when facilities operate with reduced or inexperienced staff. Approximately 10% of initial claim submissions face rejection, with error rates increasing substantially when organizations rely on temporary personnel or overtaxed permanent staff members. These staffing constraints also compromise patient communication quality, leading to inconsistencies in billing explanations, collection processes, and inquiry resolution.
  
  
• It becomes increasingly challenging to stay afloat with the evolving regulatory healthcare billing regulations and coding requirements, leading to non-compliance.
  
  

These operational disruptions can reduce overall revenue, making strategic solutions essential for survival. This is where HOM can add value and address each of the aforementioned barriers. From streamlining confusing pre-authorization processes and fast-tracking claim approvals to providing access to expert medical billing staffing solutions, we have helped several healthcare providers reduce at least 30% of overall costs. 

How Outsourcing Healthcare RCM Services Can Help Healthcare Organizations

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Healthcare organizations face challenges due to new regulations, shifting immigration policies, and persistent workforce shortages. These pressures are forcing administrators to rethink how they handle revenue cycle management. Outsourcing has evolved beyond simple cost-cutting—it's becoming essential for maintaining quality operations when internal teams are stretched thin.

Strategic outsourcing of revenue cycle functions offers healthcare providers a pathway to sustained performance despite ongoing staffing challenges. Here’s how outsourcing RCM helps:

1. Operational Continuity With Experts-Led RCM

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RCM outsourcing solves two problems simultaneously: it maintains consistent performance regardless of internal staffing changes while providing access to specialists that most facilities can't afford.  This dual benefit allows healthcare facilities to operate optimally despite staff shortages and employee turnover. 

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For example, HOM’s pre-service solutions streamline data collection and claim submissions to payers, helping healthcare facilities to fast-track claim submissions and improve their acceptance rate. Our AAPC- and AHIMA-certified experts are equipped to handle and manage an array of critical specialty areas, including Evaluation & Management, Hierarchical Condition Category (HCC),  and HEDIS coding. 

2.  Better Compliance

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Professional RCM teams stay current with healthcare regulations by necessity. They must navigate HIPAA requirements and evolving coding standards daily. Top-tier providers maintain ISO 27001 certification, which means they've invested in robust security infrastructure to protect patient and financial information.

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Healthcare organizations benefit by safeguarding sensitive data but also ensure their billing and claim submission processes align with the expected standards. This reduces the risk of costly compliance violations.

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A partnership with HOM helps healthcare providers maintain compliance with both state and federal requirements while adapting to regulatory changes as they occur.

3. Access to Sophisticated Technology and Automation Tools

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A significant number of hospitals and other healthcare facilities across the US do not embrace new technologies due to the high upfront costs, making advanced RCM automation tools out of their reach. 

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Outsourcing eliminates this problem, providing access to advanced and sophisticated technological tools that aid in improving operational efficiency levels, billing accuracy, and identifying areas of improvement within the revenue cycle performance. Advanced automation tools spot coding and billing errors that human reviewers might miss. The accompanying dashboards show performance metrics across your entire revenue cycle in real-time.

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Automation handles the repetitive work—data entry, claims scrubbing, denial management. This helps understaffed facilities maintain productivity without adding administrative headcount.

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HOM’s RCM solutions not only help healthcare providers automate labor-intensive processes but also seamlessly integrate with leading EHR platforms, including Cerner, Epic, Athenahealth, and more, ensuring seamless exchange of data without hiring IT experts. 

Transform Your Revenue Cycle Today

It is safe to say that the US healthcare staffing crisis isn’t a temporary obstacle and is likely to continue in the upcoming years, affecting clinics, hospitals, and other healthcare facilities. As mentioned, with around 3.2 million projected vacancies in healthcare by the end of 2026, organizations cannot rely on their in-house staffing to combat compliance risks and increasing costs. 

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Therefore, healthcare organizations, particularly those averse to the idea of investing in revenue cycle outsourcing, should look at it as a long-term strategy instead of a quick fix. This way, they can not only ensure financial stability but also stay competitive despite staffing shortages.  

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This is where HOM can help. We offer a perfect balance of human and tech-driven expertise, addressing key challenges across the entire revenue cycle and helping healthcare facilities struggling with staffing shortages.

Are you ready to overcome your staffing-related problems? Request a free audit to identify gaps in your current RCM processes and discover improvement opportunities.