Masthead-Image-Right-min

Beyond the Deal: RCM Pitfalls That Can Undermine Lab M&A Success

September 08, 2025 By: Quadax

Ensure success by addressing critical RCM integration pitfalls that can disrupt post-close performance and erode confidence. 

Closing the deal is just the beginning. For lab leaders, the real challenge lies in post-close execution—especially when it comes to Revenue Cycle Management (RCM). Overlooking RCM during integration can lead to costly disruptions that threaten the success of the merger. As we discussed in our recent webinar with McDonald Hopkins and Phaze 4 Medical, the real challenges begin after the ink is dry.

Risk #1: Billing and Banking Disconnect

The Problem:
Post-close, labs often run dual billing systems while banking and lockbox setups lag behind. This disconnect creates chaos in payment routing and posting.

As one of our panelists noted, “The longest pole in the tent is often setting up banking and lockbox relationships. You're running two billing systems... and your RCM vendor is trying to clean it all up on the back end."

The Impact:

  • Delayed collections
  • Misrouted payments
  • Erosion of internal and external confidence

✅ The Solution: Start integration planning early.
Engage your RCM partner before the deal closes to ensure they’re ready to support banking transitions and billing system alignment.

Without clear planning, there can be a lag of weeks or even months where payments aren’t being properly routed, posted, or collected. That chaos not only slows down collections it damages confidence internally and externally.

Risk #2: AR Migration Missteps

The Problem:
Legacy accounts receivable (AR) is rarely plug-and-play. Labs often lack a clear strategy for migrating or managing aging balances.

The Impact:

  • Revenue stuck in limbo
  • Inaccurate financial reporting
  • Missed opportunities to collect

✅ The Solution: Validate AR before closing.
A lack of clear ownership often means revenue gets stuck in limbo. Scrub aging balances and determine what’s collectible. Decide whether to convert AR into the new system or run it in parallel—with clear ownership assigned.

Risk #3: Payer Communication Gaps

The Problem:
Rebranding, test name changes, and payer updates are often neglected. Labs assume payers will adapt automatically—this is a costly mistake.

“If you don’t have a communication plan for payers, you’re going to have revenue leak, period.”

The Impact:

  • Denied claims
  • Coverage disruptions
  • Confusion among medical directors and payers

✅ The Solution: Build a payer communication strategy.
Proactively notify MACs and commercial payers of changes to lab names, addresses, and test codes. Ensure branding updates don’t break existing coverage policies.

Final Thought: Execution > Technology

Technology is important—but execution is everything. A strong RCM partner doesn’t just process claims; they align with your business goals and help you avoid post-close potholes.

Want to go deeper?
Watch the full webinar featuring legal, operational, and RCM experts discussing:

  • Common post-close pitfalls
  • Strategies to de-risk AR, billing, and payer issues
  • How to assess your RCM partner’s readiness for growth

At Quadax, we understand that successful integration doesn’t happen by chance—it’s the result of deliberate planning, expert execution, and the right partnerships. As your RCM ally, we go beyond claims processing to deliver tailored solutions that align with your business strategy, reduce risk, and accelerate post-close performance. If you're preparing for a merger or acquisition, or simply want to strengthen your operational foundation, contact us and we can help you move forward with confidence.

Share with your network

New call-to-action

Recent Posts