Email Address
info@revenuecaremd.com
Phone Number
+1 (254) 268-1617
Our Location
Austin, TX 78731, USA
info@revenuecaremd.com
+1 (254) 268-1617
Austin, TX 78731, USA
August 23, 2025
Starting a medical practice is every physician’s dream — independence, better income, and direct control over patient care. But here’s the shocking truth: nearly 70% of medical practices fail within just five years.
And the #1 reason behind this failure isn’t lack of patients or poor clinical care… it’s poor financial management of the revenue cycle.
Most physicians are excellent at medicine but never trained in the business side of healthcare. They assume that billing and collections will “just happen.”
The reality is brutal:
Over time, the financial stress becomes unbearable — leading many practices to shut down, merge, or sell.
According to industry reports, medical practices lose between 10–25% of revenue due to billing errors, denials, and lack of follow-up.
Think about it:
No practice, big or small, can survive that level of silent loss.
One clinic we analyzed was seeing 25+ patients daily but still couldn’t keep up with expenses. The doctor thought the problem was “not enough patients.”
The truth?
After improving their revenue cycle management, the same clinic became profitable within 6 months — without adding a single new patient.
If you want your practice to survive and thrive, you must treat revenue cycle management as a core part of the business, not an afterthought.
Here’s how to start:
The main reason is poor financial management and revenue cycle issues, not lack of patients or clinical skills.
Ignoring denials, underpayments, and weak patient collections — all of which silently drain revenue.
On average, 10–25% of total revenue is lost every month due to billing errors, denials, and lack of follow-up.
Not for long — denial rates above 10% can cause hundreds of thousands in lost revenue annually.
No. Without proper RCM, even high patient volume can still lead to losses and eventual closure.
By tracking denials, monitoring cash flow, improving patient collections, and partnering with RCM experts.
Revenue Care MD reduces denials, improves collections, and recovers lost revenue so doctors can focus on patient care.
The #1 reason most medical practices fail isn’t bad medicine — it’s bad money management.
Healthcare Revenue Cycle Expert at Revenue Care MD. Passionate about helping medical practices maximize revenue and reduce billing errors.
Have any questions? We’re here to help you with the right answers.