Revenue cycle management plays an integral role in the healthcare industry. Managing revenue is an essential for all enterprises. However, it may not be the sole focus of healthcare providers. But these providers, do, at the end of the day, need revenue to supply medical equipment, salaries, etc.
Healthcare costs are further increasing with the adoption of technology. Our generation is witnessing a significant rise in the aging population. This naturally, calls for increased demand for care.
Both patients and providers are shouldering the burden placed by insurance. As well as medical suppliers. Value – based payment plans are also altering the landscape of revenue cycle management.
What Exactly Is Revenue Cycle Management In Healthcare?
There may be variations between certain types of providers. As well as how different practices handle their specifics. But there is one thing in common across all revenue cycle management services. And that is the fact that it pertains to the financial and administrative part of an organization or practice.
Why Is The Revenue Cycle In Healthcare Important?
Initially, to understand what revenue cycle management is. Revenue cycle management is the process through which an organization will handle the finances and processes associated with the various different steps of patient care.
It begins when a patient first books an appointment. And continues through the billing cycle afterwards. Patient scheduling offers the perfect opportunity to gather the necessary information a patient. As well as their insurance plan. This helps in verifying eligibility.
In healthcare particularly, the revenue cycle process will include coding medical services and billing insurance. It also includes ensuring patients have eligible insurance. This goes a long way in determining costs for various treatments. This will ultimately lead to greater flexibility in arranging patient care.
Once medical services have been accounted for, another important aspect of RCM will emerge. A patient’s past due accounts and accounts receivables also impact the provider’s cash flow through collection.
The revenue cycle will also span bad debt. Or any other uncollectible patient records. Once patient accounts are up to date, the cycle will continue with scheduling the next patient’s visit.
As evident, revenue cycle management includes numerous, vital duties that impact the overall health of a practice. At the end of the day, an affluent practice trickles down to the management of its cash flow.
This would be a good time to consider outsourcing medical billing services.
The Real Value of Revenue Cycle Management In The Healthcare Industry
Revenue cycle management holds great benefits within the healthcare industry. The main goal is to enhance revenue. And identify any points of friction to rectify them.
These problems could include embezzlement. Fraud.Waste. Etc. Problems and issues with the RCM can impact other processes. And consume time that would otherwise be spent on patient care, or medical training. Whereas technology has amplified the medical billing process. It has also caused privacy concerns.
Perhaps the most important role of revenue cycle management is that it stores medical records for billing purposes. These records are protected by the Federal Law. Ensuring that these records remain protected while processing financial information is an imperative. This also adds to the importance of health information management as a part of RCM.
Outsourcing medical billing services would the best way to go for an independent practice.
The RCM process serves a critical function because it optimizes things for your practice. So you can focus on the primary goal – patient care.
An effective revenue cycle management system can carry out the following duties;
Reducing the lag between the provision of a service, and receipt of payment. This covers the entire process from scheduling an appointment, to billing.
Saving time through the automation of administrative tasks. This refers to upcoming appointments and payment reminders. It takes away the arduous physical capital invested into administrative processes.
Cutting down on denied claims through prompts to guide submissions by staff members, which increase efficiency.
Providing data that precisely pin point’s areas with room for improvement. And offering a big picture view of the revenue cycle. This offers insight into the operations of your practice. And narrows down the time required figuring out where the problem lies. All in all, you can jump directly to the solution.
Cognitive computing will reduce the occurrence of human error. And ensure correct medical coding is taking place. Once again, leading to fewer rejected claims.
Billing Freedom takes care of all your revenue cycle management needs. From billing operations, to payment posting and reporting; a team of experts will commit themselves to the challenges your practice may be facing.
