Improving Revenue and Profits in Healthcare using Revenue Cycle Management
Consumer expectations within healthcare management are challenging. Archaic, clumsy interfaces and disconnected systems cannot meet such requirements.
Additionally, the weight of the increased number of patients and their financial responsibility is putting a strain on management. The manual operations are time-consuming. Due to the pandemic, such problems have been aggregated. For underfunded teams, understanding and adjusting to substantial regulatory change is difficult.
The financial process that facilities adopt to manage the clinical and administrative tasks for claims, payments, and revenue generation is known as healthcare revenue cycle management. The procedure includes identifying, monitoring, and collecting income from patient services.
Healthcare revenue cycle management aims to create a system that enables companies to obtain full reimbursement for their services as promptly as feasible.
Read along to learn how to optimize RCM to optimize the bill payment procedure for patients and healthcare providers.
What is the Revenue Cycle Management procedure in Healthcare?
When a patient schedules an appointment for medical services, the revenue cycle management process begins. The procedure is complete when all claims and patient payments have been resolved.
The steps involved in between are mentioned as follows.
- To begin, when a patient makes an appointment, administrative personnel must handle booking, insurance eligibility confirmation, and the patient’s account creation.
- The importance of this pre-registration step in revenue cycle management systems cannot be overstated. Employees build a patient profile that contains information about the patient’s medical history and insurance coverage.
- When a patient visit is completed, the healthcare provider then needs to generate a claims submission and fulfill charge capture obligations.
- The charge capture procedure records the services and converts them into billable rates.
- Depending on the patient’s coverage and payer contracts, healthcare organizations often receive compensation for their services after an insurance company examines the claim.
- Healthcare institutions must then inform and receive payments from patients for everything that insurance doesn’t cover.
This process is critical in ensuring that healthcare institutions can continue to provide treatment to patients.
Automating Patient Access
Patient access processes that are swift, precise, and efficient are the foundation of a sustainable revenue cycle. Three ways that healthcare automation can help the revenue cycle have been listed below.
- Automation makes it easier for patients to arrange appointments and register for care. Using digital tools and automation enriches the pre-service patient experience.
- Online scheduling and self-service enrollment contribute towards saving time and resources for employees while also reducing significant errors that can occur with manual methods by establishing a smoother process.
- Removing paper-based pre-approval processes can aid healthcare companies in improving operational efficiency and reducing denials, allowing them to be reimbursed sooner.
Internet-Based Medical Billing
Providing patients with alternatives, such as online patient payment options, will improve revenue cycle management by encouraging customers to pay their bills in a more convenient and timely manner.
The pandemic significantly strengthened the online payments options and diversified them simultaneously. Patients and organizations should take advantage of them. Healthcare centers should thus, consider employing as many of them as possible to simplify payments processes.
Employ an In-House Coordinator
Assigning care coordinators can assist professionals in better understanding the patient’s problems and issues.
Furthermore, having health coordinators communicates concern and seriousness toward patients’ problems. It would indicate that an organization cares about the patients and their health concerns, increasing patient trust and building a loyal customer base.
Maintaining Healthy Payer-Provider Relationships
Robust payer-provider relationships are essential for a successful revenue cycle. Any discrepancy between projected and actual payments negatively impacts provider earnings, as income is lost and time is wasted reviewing.
Efficient and effective health contract management systems can guarantee that providers are paid on time and in full. Patients and healthcare providers can avoid payment delays by using various digital and automated technologies. It can be used to alert any changes to payer rules or procedures quickly.
They can monitor payer performance to ensure collections align with agreed-upon parameters to avoid under and overpaying. Perhaps most crucially, contract management solutions improve communication between providers and payers, allowing providers to understand what exactly payers need to ensure quick revenue recovery.
Utilize Data Analytics to Enhance Revenue Cycle
Today’s revenue cycle management must handle increasing organizational complexity while preserving financial health in times of crisis. Health systems may meet these needs using comprehensive analytics to identify opportunities to enhance revenue and data-informed approaches to maintain improvements as organizations grow and new difficulties emerge.
Revenue cycle analytics and financial data are essential to make the cycle more transparent through charts or graphs. Furthermore, dashboards and strong reporting are recommended for better healthcare revenue cycle management.
Metrics and data analytics are required to manage the revenue cycle effectively. Monitoring KPIs to track the revenue cycle’s health is also essential to maintain a healthy revenue cycle.
Regular Inspection and Updating
Organizations need to closely monitor claims filings and billing procedures’ irregularities to spot early problems and rectify them. A business can also outsource the process to individuals specializing in revenue cycle management and employ relevant technology and software.
By assigning the duty to the specialists, the organization can focus on its core competencies rather than being distracted by the healthcare industry’s micromanagement of the medical billing and coding systems.
Mentioned above are only a select few of the strategies geared towards improving revenue cycle management in Healthcare. Several other tools, technologies, and efforts exist to streamline processes and simplify payments and processes between patient and provider.
Having a transparent and well-planned process helps patients manage their anxieties surrounding this issue and prevents any other shortcomings that the insurance company and healthcare provider may face.
Ensuring a process focused on customer service only creates an environment of trust, security, and honesty. Therefore, the revenue cycle management in individual healthcare companies must be customized according to their requirements.