How hospitals can strengthen physician billing performance through the right balance of people, process, and technology.

Expansion without alignment

Hospitals continue to grow their employed physician networks, and physician billing has become a central source of hospital revenue.

  • 24% → 46%Share of hospital-employed physicians, 2010 to today
  • $2.38MRevenue per employed physician

The financial opportunity is not up for debate. The challenge is that billing operations have not evolved as rapidly. When new practices are added, the lack of alignment in how work is documented and billed puts pressure on existing systems.

The challenge: physician billing performance lags behind

Physician billing lags because variation is built into the process; every step becomes harder to control. Information doesn’t flow smoothly from the point of care to billing, and leadership can’t easily see those differences across specialties. Delays and denials build from the foundation up.

  • $19.7BSpent by hospitals appealing denied claims in 2022
  • 16% / 14%Medicare Advantage / commercial claims denied on first submission

Physician billing underperforms because the process lacks uniformity — and without that consistency, errors and denials keep revenue from moving as it should.

The financial impact: inconsistency drains cash flow

Denied claims and slow reconciliation reduce the cash available to support operations.

  • 8%Of claims denied on first submission across medical groups
  • 13%+Of A/R unresolved for more than 120 days

Until billing operations are rebuilt for consistency, physician groups within hospitals will continue to trail the performance of the larger system.

The strategic fix: build physician billing as infrastructure

Knack RCM integrates charge capture, coding, denial management, and A/R follow-up into a single, coordinated process designed for hospital-owned physician practices:

  • Automation handles repetitive, rules-based tasks.
  • Analytics surface payer patterns early.
  • Experts focus on resolution, compliance, and process improvement.

The result is physician billing that scales with enterprise growth and performs with hospital-level consistency.

What structured billing delivers

Structured, consistent physician billing delivers measurable gains:

  • Up to 25%Reduction in A/R days
  • Up to 98%Clean-claim rate
  • SteadierCash flow and improved forecasting

The takeaway

Strong hospital performance starts with consistent physician billing. When billing is integrated into the larger revenue cycle, the organization gains visibility and control across every point of reimbursement. Knack RCM partners with health systems to align physician billing with the same structure and reliability as hospital billing.