North Country Healthcare defends outsourcing move, cites stability
VERMONT, UNITED STATES — North Country Healthcare (NCH) officials are standing by their decision to outsource revenue cycle management (RCM) operations, emphasizing that the move is designed to ensure financial stability and maintain the organization’s focus on patient care.
According to a report from the Caledonian Record, NCH executives said outsourcing the financial and administrative processes to Hartzler Healthcare (H2) is a strategic step in modernizing the system amid increasingly complex healthcare billing requirements.
NCH officials said that the move to outsourcing is necessary to manage increasingly complex billing regulations and ensure the financial stability of the system.
Outsourcing aims at stability and patient focus
NCH began transitioning its RCM operations earlier this year, a process that will conclude after a final round of staffing adjustments in early 2025.
In its latest internal communication, the nonprofit announced that 10 additional back-office roles will be eliminated in January, followed by approximately 30 more positions in the Health Information Management and Release of Information departments.
Despite the job cuts, officials emphasized that the outsourcing effort would result in fewer layoffs than initially projected—approximately 46 positions, rather than the 100 originally anticipated.
The organization also expressed hope that some affected employees would find new roles within the NCH system.
NCH Chief Executive Officer (CEO) Tom Mee said the decision reflects a growing trend within the healthcare industry, where nearly 80% of health systems have already adopted outsourcing for revenue cycle operations, including billing, insurance authorizations, and claims management.
He explained that the transition is designed to strengthen financial stability while safeguarding jobs and supporting the retention of frontline healthcare workers.
NCH highlighted that partnering with H2 will help strengthen its internal operations. “We will get the benefit of the H2 staff expertise,” the letter stated. “H2 will be picking up authorizations—this allows us to rely on their expertise and keep our staff focused on patient care.”
Transparency efforts and state review process
While the outsourcing deal is under review by the New Hampshire Department of Justice for compliance with procurement guidelines, NCH has maintained that the process was handled properly.
The organization clarified that Matt Hartzler, owner of H2, was not an NCH employee but a consultant from an external firm brought in to temporarily serve in a leadership capacity, according to in-house counsel Brooke Belanger.
In response to staff and community feedback, NCH acknowledged that earlier communication about the outsourcing “should have been better” and pledged to “improve transparency and share information in a timely and clear way.”
Officials reassured patients and staff that they anticipate no service disruptions during the transition.
“As these individuals transition into new roles, there will be no gap in operations because H2 staff will be in place,” the organization said.
By outsourcing its RCM operations, NCH joins a growing number of healthcare systems turning to specialized partners to streamline administrative efficiency — a move it says will help sustain both staff and service quality in the long run.
