Why Now Is the Right Time for Labs to Reevaluate Their RCM Partner
In today’s complex lab and pathology billing environment, nearly 90% of laboratories report increased denial rates, while reimbursement continues to tighten. With margins under pressure, labs can’t afford to stick with underperforming revenue cycle systems. And while summer often feels like the time to hit pause, it could actually be your best opportunity to take control of your revenue cycle and ensure you're not leaving additional revenue on the table.
Is Summer the Right Time to Reevaluate Your RCM Vendor?
For many labs, summer is seen as a season to avoid major change. Teams are stretched thin, vacation calendars are full, and strategic initiatives tend to get pushed to the fall. But that’s exactly why this quieter season can be the ideal time to evaluate your current RCM performance and plan for a stronger future.
Labs face unique challenges:
- Constant regulatory and compliance changes
- Complex test coding requirements
- Higher costs and declining reimbursements
- Growing administrative burden
- Shortage of experienced RCM staff
If your current RCM vendor isn’t proactively addressing these realities, your profits are likely slipping through the cracks.
From Delay to Opportunity
A 2023 MGMA report revealed that 69% of practices are facing rising denial rates, with 33% citing outdated billing systems as a root cause. Tackling these issues now—when operations may be slightly less hectic—gives you the space to focus on transformation before Q4 pressures take over.
The Hidden Costs of Waiting
Delaying a vendor switch until later in the year may feel like the safer move but in reality, waiting can compound revenue loss and strain already stretched resources. When you postpone RCM improvements to navigate Q3/Q4 demands, you're essentially choosing to operate with known inefficiencies and absorbing avoidable losses in the process.
Every month spent with an underperforming RCM partner results in lost revenue, increased expenses, manual workarounds and bottlenecks, and reduced visibility into performance trends that could inform next year’s planning. By acting now, your lab gains valuable lead time to assess, optimize, and prepare, entering the fall with greater control, better insight, and stronger financial footing.
Not Just a Tech Shift—A Revenue Strategy
Switching RCM vendors is more than a software swap. It’s about driving measurable financial and operational outcomes, including:
- Increased net collected revenue
- Reduced denials
- Reduced rework and resubmissions (and fees)
- Improved DSO
- Reduced operational costs / enhanced scalability
At Quadax, we tailor every implementation to your lab’s specific needs from genetic testing workflows to reference lab billing complexities. Our industry expertise ensures a smooth transition with minimal disruption and fast time to value.
And when you partner with Quadax, transformation doesn’t take forever. Within 12 months of switching to Quadax, customers typically see:
- Minimum of 10–15% increase in net collections
- 30% improvement in workflow efficiency
- Improved client satisfaction ratings
- Drastic improvement in reporting and analytics visibility for continuous quality improvement
These aren’t just incremental improvements—they’re operational game-changers.
Make Summer Count
Instead of waiting for the “perfect” time to address RCM inefficiencies, take advantage of the summer lull to evaluate, strategize, and act. By fall, your lab could be operating with maximized net collections, reduced denials, streamlined workflows, better insights, and less manual intervention.
Quadax is ready when you are. Let’s build a revenue cycle that works for you—year-round. Request a strategy call here.
