The Rise of Revenue Cycle Management in U.S. Healthcare

A new study by TempDev examines the dramatic growth in interest and adoption of revenue cycle management (RCM) in U.S. healthcare from 2005 to 2025. The study analyzes both national trends and state-specific variations, along with the financial implications for healthcare providers.

Key Takeaways:

• Interest in revenue cycle management has gone from minimal in 2005 to a very high engagement level (92+ points out of 100 on the search interest index) in 2025.

• The analysis reveals significant regional variations in RCM adoption, with Kansas showing the highest increase (+60 points), followed by Virginia and South Carolina (both +20 points).

• The healthcare industry faces an unprecedented financial challenge, spending $19.7 billion in 2022 on denied claims appeals alone.

High Interest in RCM Since 2021

The study reveals a strong transformation in RCM interest over the past two decades, beginning with minimal engagement in 2005 and rising to sustained levels exceeding 92 points in the search interest index by 2024. A pivotal moment occurred in 2021, when average interest scores peaked at 72, marking the most significant annual increase in the study period. This high level of interest has remained consistent through 2025, indicating a fundamental shift in healthcare administrative priorities.

Rising Interest in Kansas

The study found substantial variations in RCM adoption rates across states, with Kansas showing the highest increase of 60 points. Virginia and South Carolina followed with respective increases of 20 points each.

The financial implications of current RCM challenges are substantial, with healthcare institutions spending $19.7 billion in 2022 solely on denied claims appeals. Around 15% of private payer claims face initial denial, though 54.3% are eventually overturned through appeals. Perhaps most telling is that 95% of healthcare institutions report increased administrative burden related to prior approval processes, indicating a systemic challenge in current revenue cycle operations. The high successful appeal rate (54.3%) against the substantial cost of appeals ($19.7B) suggests significant opportunities for process optimization.

Critical Function

The study reveals a clear link between growing RCM interest and administrative challenges in healthcare revenue management. The sharp uptick in 2021 coincides with a heightened focus on operational efficiency during the COVID-19 pandemic, suggesting external pressures accelerated RCM adoption.

The twenty-year trajectory of RCM interest reflects its evolution from a peripheral concern to a mission-critical function in healthcare operations. Regional variations in adoption rates suggest differing responses to common challenges, while financial data underscores the growing importance of efficient revenue cycle management in modern healthcare administration.

Methodology

The study employed a mixed-methods approach, combining Google Trends data (2005-2025) for “revenue cycle management” with healthcare administrative statistics from the American Hospital Association (AHA). Google Trends data, which measures search interest on a scale from 0-100 (with 100 representing peak interest and 0 indicating minimal interest), was used to track the evolution of revenue cycle management interest across U.S. states. This data serves as a proxy for measuring attention, awareness, and potential adoption of RCM practices, as higher search volumes typically indicate increased engagement from healthcare professionals seeking information, solutions, or resources related to revenue cycle management. The study supplemented this trend analysis with current financial and operational data from the AHA to provide context for the observed patterns in search behavior.