Why Operational Intelligence Matters for Financial Performance.
Your revenue cycle may be generating millions in avoidable costs without ever showing up as a problem on your dashboard. For CFOs and revenue cycle leaders, the challenge isn’t simply knowing where performance changed. It’s understanding which operational decisions caused it, what they’re costing the organization and where to act before the impact compounds.
That visibility can be difficult to achieve because some of the most consequential revenue cycle problems are buried inside routine work. A process can become so familiar that no one questions it anymore, even as the financial impact grows. By the time the effect appears in a financial or performance metric, the underlying workflow may have been operating inefficiently for months.
The $9 Million Dollar Workflow Hiding in Plain Sight
In Janus Health’s own client work, a large integrated delivery network had a routine workflow hiding in plain sight. Certain payers had started requesting itemized bills on specific claim types, and fulfilling those requests gradually became just another daily task. Staff followed the process as designed, and because the work was happening consistently, there was little reason to view it as a problem.
Reimbursement kept slipping anyway.
Because the workflow had been normalized for so long, leadership had no visibility into what it was actually costing the organization. Once the pattern surfaced, addressing the workflow accelerated roughly $9 million in cash flow and eliminated the nine-day accounts receivable delay. The issue was not execution. It was the lack of visibility into the operational decisions behind the outcome.
That distinction becomes increasingly important as revenue cycle organizations manage hundreds of workflows across payers, facilities, service lines and teams. When a process becomes part of the daily routine, its cost can become just as routine. Automation can make that work more efficient, but it cannot determine which processes should be changed in the first place.
The Next Stage of Revenue Cycle Performance
For most of the last decade, revenue cycle performance was a function of scale. When denials increased, organizations added staff. When payer complexity grew, they added more staff again. That model worked until labor costs continued to rise, specialized talent became harder to find and margins became too tight to support adding headcount every time the workload increased.
The response was to make the existing work more standardized and more efficient. Organizations documented workflows, centralized functions, and automated repetitive tasks. A claim now moves through scrubbing, submission, and initial follow-up with far fewer human touches than it did five years ago.That was an important step forward. It also exposed the limitation of optimizing work that hasn’t been fully understood.
The next stage of revenue cycle performance requires organizations to learn from the work itself. Leaders need to understand where performance changes, what operational decisions are driving those changes, what the financial impact looks like and where intervention can make the greatest difference. That creates a more continuous approach to improvement, where operational data informs decisions rather than simply documenting the results after the fact.
HFMA’s 2026 outlook on revenue cycle strategy puts a fine point on this challenge, noting that “Layering new technologies onto legacy processes can even amplify inefficiencies if foundational workflows and governance are not redesigned in parallel.” The lesson is not to slow down automation. It is to understand the operation well enough to know where automation will create meaningful value.
Becker’s Hospital Review reported in July 2026 that revenue cycle centralization is making a comeback at systems including Texas Health Resources and Mount Sinai, in part because standardized, centrally governed workflows create a stronger foundation for automation and analytics to work efficiently.
The next step is to turn operational data into a system for continuous improvement. Organizations need to understand how their revenue cycle is performing, why performance changes, what those changes are costing, and where to intervene. That’s the capability Operational Intelligence is designed to provide.
What Reporting, Analytics, and Automation Still Can’t Tell You
Reporting, analytics, and automation get treated as three price points on the same idea. They’re not. Each provides a different kind of visibility into the revenue cycle, and confusing those capabilities can lead organizations to invest in automation when what they really need is a better understanding of what is happening inside the operation.
Reporting tells you what happened: the denial rate by month, by payer. It’s a dashboard, and it’s necessary, but it’s retrospective.
Analytics finds the pattern within what happened: which payer is driving the increase, which facility it’s concentrated in. It narrows the search and gives leaders a better place to focus.
Automation executes a defined task without a person doing it manually. It can determine authorization requirements and submit it at a pace and level of consistency that a manual process cannot match. For repetitive, rules-based work, that can create significant value.
The gap appears when leaders need to understand what is driving the performance change and where to intervene. Reporting identifies the outcome. Analytics helps identify the pattern. Automation executes the work. None of those capabilities, by themselves, provides a continuous understanding of the operational decisions producing the outcome.
That gap does not have a widely agreed-upon name across revenue cycle organizations. It is often described as more analytics, better reporting or smarter automation. Operational Intelligence gives it a more precise definition.
Operational Intelligence is the ability to continuously transform operational data into actionable insight that enables ongoing operational improvement and, ultimately, stronger financial performance.
In practice, that means connecting operational activity to financial outcomes and continually updating the picture as the operation changes. Instead of stopping at “denials are up,” Operational Intelligence helps identify which workflow changed, what is driving the change, what that change is costing the organization and where to intervene before the cost compounds. It answers why and where.
McKinsey’s 2023 analysis of automation and analytics in revenue cycle work estimated that automation and analytics together could eliminate $200 billion to $360 billion in unnecessary U.S. healthcare administrative spending. The catch, in their words, is that most of that value shows up only when analytics moves past measuring denials and starts explaining them. A team that manages rejections one at a time can resolve individual problems. A team that understands what is generating those rejections can address the process producing them.
What Operational Intelligence Looks Like in Practice
The objective is no longer simply identifying that performance changed. It is understanding why.
One large academic medical center demonstrated what that looks like by examining its own revenue cycle team. The organization had approximately 230 people managing more than 800,000 accounts a year. Everyone was doing their job, but the way the work was being performed varied significantly. Operational Intelligence revealed that only a small group of employees consistently used the advanced payer portals and workflow tools available to them, while others defaulted to manual copy-and-paste work that generated additional account touches and downstream accounts receivable delays.
That variation would have been difficult to identify by watching a denial-rate dashboard. The problem was embedded in the work itself. Automation could have made the manual copy-and-paste process faster. Operational Intelligence helped the organization recognize that the process needed to change.
By gaining insight into the various tools, websites, and applications the team leveraged throughout the day, including the time spent on non-work-related websites, the organization eliminated 70% of the non-value-added activity across its patient financial services team.
Mayo Clinic’s Nikki Harper, speaking to HFMA about where revenue cycle roles are headed, framed the shift as “elevate, not eliminate.” Staff move from processing individual claims to reviewing what the intelligence layer surfaced and deciding where to intervene. That’s a different job. It requires people who can interpret a finding and act on it, not just process a queue faster.
The Revenue Cycle is Becoming a Learning System
The market is moving in this direction as health systems face continued pressure to improve financial performance while managing labor constraints and increasing operational complexity. HFMA reports the U.S. revenue cycle management market growing from $90.6 billion today to $308 billion by 2030, while McKinsey has estimated that AI-driven approaches could reduce cost to collect by 30% to 60%. For a system with $6 billion in patient revenue, that could represent $60 million to $120 million in annual value.
That level of investment will bring more technology into the revenue cycle, along with more vendors using terms such as intelligence, automation, and AI to describe increasingly similar capabilities. For revenue cycle leaders, understanding what sits behind those labels will matter. The value will come from how effectively those technologies help an organization understand and improve the work that drives financial performance.
The organizations that create lasting value from these technologies will need more than automation. They will need a way to understand how their operations are performing, identify the behaviors and processes influencing those results, measure the financial impact, and continuously adjust the operation based on what they learn.
That changes the role of operational data. Rather than serving primarily as a record of what happened, it can become a source of insight into how the revenue cycle is actually working. Every claim, payer interaction, staff decision and workflow exception can contribute to a clearer understanding of where performance is being created, where it is breaking down and where the organization has an opportunity to improve.
In that environment, the revenue cycle becomes more than a collection of workflows to optimize. It becomes a system that can learn from its own performance.
For revenue cycle leaders, that shift creates a unique way to think about technology and performance. The goal is not simply to process more work with fewer resources. It is to build an operation that becomes more informed over time, where the organization can see what is happening, understand what is driving it, and use those insights to continually improve how the work gets done.
That may ultimately be the next stage of revenue cycle performance: not simply automating the work but creating an operation capable of learning from it.
Read the full white paper, Rethinking Revenue Cycle Strategy in the Age of AI, for the rest of the story, including the six questions we think every executive team should be asking about their own operating model, starting with whether their AI investments are improving execution or improving learning.
Sources
- Rethinking Revenue Cycle Strategy in the Age of AI, Janus Health, August 2026 (case examples, the Operational Intelligence definition, and the 10-15% initial denial rate cited above are drawn from this white paper, which attributes the denial figure to HFMA)
- Case Study: Operational Intelligence, Janus Health, August 2025 (the academic medical center’s team size, account volume, and workflow variation; the 70% non-value-added activity reduction is a later finding reported in the whitepaper above)
- Why revenue cycle centralization is making a comeback, Becker’s Hospital Review, July 2026
- Automation, analytics, and AI in revenue cycle management, McKinsey & Company, 2023
- Agentic AI: The race to a touchless revenue cycle, McKinsey & Company, January 2026
- Revenue cycle as enterprise infrastructure: Building financial resilience in 2026, HFMA, March 2026
- The Revenue Cycle of the Future: AI boom and workflow redesigns accelerate rev cycle transformation, HFMA, April 2026 (updated August 2026)