RCM Challenges: Declining Profit Margins

Ashish Kumar Aggarwal & Leigh Poland

April 25, 2023

Currently in the U.S., hospitals have been seeing abysmal profit margin numbers. A recent research report showed that since the start of the pandemic, many hospitals are operating at a loss. There are many systemic causes, ranging from labor shortages and costs, supply chain issues for equipment, and the general increased costs in every facet of the economy due to inflation.

Why are hospitals facing declining profit margins, and what are some solutions that could help turn this around?

On the latest episode of RCMchat, host Michelle Dawn Mooney chatted with two senior team members from AGS Health, Leigh Poland, Vice President of Coding Service Line, and Ashish Kumar Aggarwal, Senior Vice President of Operations and Process Excellence, about the subject. On the show the two discussed with Mooney the cause and effect that has led to hospitals seeing declining profit margins and several solutions that can help remedy the downward trend.

Mooney, Poland, and Aggarwal also talked about the pandemic’s role in declining margins and also …

  • Reasons for why labor costs are also rising
  • How older patients and patients with chronic conditions have increased healthcare demands
  • Other contributing factors that are playing a role in the declining profit margins


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Podcast – Declining Profit Margins

Leigh Poland

Leigh Poland RHIA, CCS


Leigh has over 20 years of coding experience and has worked in the coding and education realm over the last 20 years. Her true passion is coding education making sure coders are equipped to do their job accurately and with excellence. Academically, Leigh has graduated from Louisiana Tech University with a Bachelor of Science. Leigh has had the opportunity to present many times in the past at the AHIMA, ACDIS, and AAPC National Conventions. She has been a guest speaker on AHIMA webinars and has written several articles that were published in the AHIMA Journal. Leigh has traveled the US and internationally providing coding education.

Ashish Aggarwal

Ashish Kumar Aggarwal


Ashish Kumar Aggarwal is the Senior Vice President of Operations and Process Excellence at AGS Health. He’s been with the company for over eight years now and has 27 years of global delivery experience and is certified in project management.