Private equity firms took a "significant interest" in revenue cycle management companies in 2022, according to a Feb. 23 report from the Private Equity Stakeholder Project.
RCM companies were involved in 21 private equity deals last year — 18 add-ons and three buyouts — according to the report.
"RCM companies advertise themselves as more efficient and advanced than in-house debt collection operations at hospitals," the report stated. "There is evidence to support this contention, as many RCM companies have invested heavily in updating and scaling their collection services through technology. This has led to a surge in demand from hospitals for RCM services, which has made this segment of the industry very profitable and attractive for investors."
Read the full report here.