By Tammy Coley
Even though the healthcare industry is innovation-forward, many of its financial processes are still done manually. As a result, many CFOs in the healthcare space are almost always reacting to mishaps instead of being resilient against them. A recent report uncovered that the healthcare sector remains shackled by outdated payment processes that jeopardize its financial stability — 84% of organizations report financial losses due to outdated accounts receivable processes, and 85% recognize the urgent need to improve payment experiences, emphasizing the demand for a comprehensive overhaul. By modernizing and transforming financial processes in the healthcare sector, the industry can be well-equipped to navigate policy and economic shifts, all while improving operational efficiency and business outcomes.
The strain of manual financial processes
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Healthcare finance leaders had expected 2025 to be a year of growth but have been met with the opposite. According to Deloitte’s US Health Care Survey, 73% of healthcare CFOs are concerned about revenue growth and operating profitability. To navigate this challenge, many healthcare finance leaders are shifting their strategies to focus on high-impact levers to improve financial performance. However, many of these actions are falling short of impact.
One of the reasons behind it is the complexity of outdated financial processes. Financial transactions are complicated, a landscape exacerbated by manual processes, making the payment and claims landscape even more fragmented. The reconciliation and monthly close process requires more than just matching bank accounts and credit card transactions. Patient refunds must also be reconciled to ensure both financial and regulatory compliance, while considering the complex world of insurance and claims. Every payer and state program has different rules, authorization forms, and timelines. Tracking these claims makes it nearly impossible to standardize revenue cycle workflows.
Additionally, there is a human cost to manual processes. When workers are dealing with endless data entry in outdated excel sheets and working across fragmented IT systems, it becomes very exhausting for employees and causes frequent burnout, increasing the risk of human error, misreporting, and more compliance issues.
Growth challenges with outdated processes
If healthcare companies do not modernize their financial systems, they risk being reactive instead of resilient during the shifting regulatory and economic landscape. Outdated processes make companies vulnerable to falling behind those that are embracing innovation to keep up with demand.
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