Learn all about practice management systems (PMS) and how they can help streamline administrative and RCM workflows

Administrative tasks are eating up more of physicians’ time than ever — leaving less time for patients and more stress on staff. In athenahealth’s 2025 Physician Sentiment Survey, 77% of respondents said a significant portion of their time is spent on non-reimbursable tasks. For primary care physicians, that number jumps to a staggering 85%.¹

Half of all respondents also reported they’re considering major operational changes to ease financial pressures.² That’s a clear sign that current systems and processes aren’t working—and that practice management needs a reset.

That’s where practice management software (PMS) comes in. As a foundational technology, a PMS offers a centralized, efficient way to manage the administrative, operational, and financial aspects of running a medical practice. With the right system in place, practices can reduce administrative burden, support their revenue cycle, and refocus on what matters most: patient care.

What is a practice management system (PMS)?

A practice management system handles the everyday administrative and financial functions of a healthcare organization. It supports core processes like:

• Appointment scheduling
• Patient registration
• Insurance verification
• Claims management
• Reporting and analytics

While electronic health records (EHRs) support the clinical side of patient care, a practice management system operates as the business engine of a medical practice. It ensures that the front and back office run efficiently, creating smoother experiences for staff and patients alike.

A robust PMS acts as a central hub—helping healthcare providers simplify workflows, reduce errors, and make more informed decisions based on real-time operational data.

What’s the difference between practice management software and revenue cycle management software?

Although practice management software and revenue cycle management (RCM) systems often work in tandem, they serve different but complementary purposes. 

Practice Management System (PMS)

• Purpose: Primarily focused on the administrative and operational aspects of a medical practice.
• Users: Typically used by front-office staff, practice managers, and administrative personnel.
• Primary Goal: To streamline practice operations, improve patient flow, and enhance overall efficiency in managing day-to-day activities.

Revenue Cycle Management System (RCM)

• Purpose: Concentrates on the financial aspects of healthcare services, specifically the processes involved in billing and collections.
• Users: Primarily utilized by billing specialists, financial managers, and revenue cycle teams.
• Primary Goal: To optimize the revenue cycle, reduce days in accounts receivable, and maximize revenue collection for healthcare services rendered.

Key differences and where they overlap

Practice management software is primarily concerned with how a practice functions from day to day, while revenue cycle management software focuses on how revenue flows in and out of the organization. But the two systems are highly interdependent.

A PMS captures the data that drives the revenue cycle—such as patient demographics, insurance information, and appointment details. This data is essential for accurate medical billing and claims management, meaning a breakdown in one system can quickly have adverse effects on the other.

For this reason, many modern practice management software solutions include built-in revenue cycle functionality—or tightly integrate with RCM platforms. This integration improves visibility into performance metrics and ensures that clinical, administrative, and financial teams are working from the same playbook.

Practice management software is the foundation that practices need to build clinical efficiency, improve practice performance, and maintain patient volume.

Why the right practice management software is a must for any healthcare organization

A practice management tool is critical to healthcare organization success – it’s the foundation that practices need to bolster clinical efficiency, improve practice performance, and keep patients coming through the door.

When coupled with the right strategy for growth and sustainability, a practice management technology can pave the way for organizations to thrive. 

Here’s how the right PMS supports practice success:

1. Fewer no-shows, fuller schedules

Many practice management platforms offer online scheduling, real-time calendar management, and automated appointment reminders. These tools reduce no-shows and cancellations, helping providers maintain full, efficient schedules. Practices can also use PMS insights to forecast patient demand and optimize scheduling workflows accordingly.

2. Faster, more accurate billing

When billing processes are automated through a PMS, coding errors and documentation gaps are easier to spot and correct—before claims are submitted. Some practice management software also includes coding suggestions and rules engines to improve accuracy and speed up reimbursement.

3. Reduced claim denials

Since practice management systems capture and verify patient and insurance data at the point of registration, they help ensure that claims are clean and complete when submitted. This reduces delays, minimizes denials, and accelerates collections.

4. Improved patient experience

Today’s patients expect consumer-grade convenience. Many PMS platforms offer features like patient self-scheduling, digital check-in, and two-way communication tools. These capabilities enhance the overall patient experience—and can increase retention and referrals.

5. Greater visibility into practice performance

A strong PMS delivers actionable insights into key performance indicators (KPIs) like appointment volume, claim status, and revenue trends. This data empowers practice leaders to make informed decisions about staffing, marketing, service lines, and more.

6. Stronger compliance and data security

Regulatory compliance is non-negotiable in healthcare. Practice management systems help organizations meet HIPAA and security requirements by managing access controls, audit trails, and secure storage of patient and financial data.

7. Easier scalability and interoperability

As practices grow, the ability to connect seamlessly with external care sites, like hospitals, labs, or payers, becomes crucial. The right practice management system supports interoperability, making it easier to coordinate care and exchange data without creating administrative bottlenecks.

Why practice management software is foundational to a smooth-running and financially viable practice

Efficiency and agility aren’t just nice to have—they’re essential for a practice’s sustainability. With financial pressures mounting and patient expectations evolving, practices can’t afford to manage operations through spreadsheets and fragmented tools.

The right practice management software gives providers the operational foundation they need to deliver excellent care, run a profitable business, and adapt to industry change.

By investing in a system that connects front office, back office, and revenue operations, practices can turn administrative burden into business opportunity—and thrive well into the future.

Want to learn how the right practice management software can help streamline operations and improve patient care? Read more.