RCM (Revenue Cycle Management) is an essential component of any medical organization. Because the healthcare industry is constantly changing, hospitals and medical providers must change their revenue cycle almost every year. Even minor changes to internal processes can help you identify inefficiencies and unnecessary costs. The more robust you’re RCM, the more successful your organization will be. Continue reading for some pointers on how to improve your revenue cycle management this year.
Enhance Your Registration Procedures
Are you looking for a way to reduce the number of claims you reject? If this is the case, think about your patient registration process. Do you have a specific procedure in place to ensure that a patient’s registration is correct? Too often, staff members will not confirm a patient’s insurance coverage. As a result, a large number of claims are denied due to ineligibility. Your staff members who register patients should immediately verify patient and contact information. Because people frequently change insurance companies/plans, it is critical to confirm their current coverage in order to limit the number of denied claims.
Monitor Time in AR
How long do your accounts receivable take on average? Reduced AR days should motivate you to make your practice’s RCM protocols as efficient as possible. Not only will this reduce the time it takes to receive your funds, but the reduction of denials will make your organization more profitable. Reduce the total number of days a bill sits in account receivable, and you will reduce the overall cost to collect.
Take Advantage of Technology
We live in a digital age where we rely on technology for seemingly everything. In order to draw any conclusions about your organization’s RCM, you should use technology to analyses your data. This data will allow you to draw conclusions about the performance of your RCM. Additionally, use credentialing software to better manage a provider’s information and background. Furthermore, make use of medical billing tools because they allow your organization to operate more efficiently. It helps you stay organized because information can be quickly recorded and accessed later.
The Most Common Revenue Cycle Issues Facing Hospitals
Many hospitals today face a variety of revenue cycle challenges. It is a lengthy process that requires all departments within the organization to collaborate for it to be successful. In order for hospitals to be financially successful, their revenue cycle must function as efficiently as possible. This is why many hospitals are currently struggling. They are experiencing difficulties with their revenue cycle management and are unable to overcome them. It is critical to understand that the healthcare revenue cycle is the foundation of any medical organization today. Continue reading to learn about a few notable revenue cycle challenges that most hospitals face today.
The Cost of Collection
Many patients are now required to cover a greater portion of their costs. The Advisory Board has stated that health systems must collect data from patients at the point of service. The good news is that there are numerous opportunities for hospitals to become more financially stable. They frequently can help patients by providing discounts. As a result, the percentage of point-of-service collections should rise.
Denials of Claims
Today, hospitals and other health systems have more written-off claim denials than they did five years ago. There is evidence to suggest that this trend will continue, as the success rate of claim denial appeals has decreased. For many years, technical errors were the primary cause of hospital claim denials. Now that value-based reimbursement is more widely available, this has become an even more pressing issue. To recoup their investments, hospitals must demonstrate improved clinical documentation as well as patient care.
Problems with Cash Flow
Any organization’s cash flow will always be a concern. The good news for most healthcare systems today is that cash flows have increased dramatically in recent years. These can be attributed to a number of factors. One of the most notable is the increase in claim denial write-offs over the last few years.
Three Common Revenue Cycle Mistakes Made by Medical Practices
To make a medical practice as profitable as possible, Revenue Cycle Management (RCMs) is required. Many practices struggle with RCM because they are so focused on their patients but do not devote nearly the same amount of attention to their revenue numbers. Continue reading to learn about some of the most common revenue cycle management issues that medical practices face, as well as some solutions that will help them become more profitable over time.
Not Always Following Up With A/R
Many medical practices make the mistake of not following up on accounts receivable. They are missing out on potential revenue sources by not doing so. It is critical to always follow up appropriately. A practice should strive to keep its outstanding balances and the total number of write-offs as low as possible.
Inadequate training for staff members
Medical staff members must be trained so that they fully understand their role within the organization. For the revenue cycle to be successful, everyone must contribute. People in charge of billing, for example, must know how to collect copayments and follow up with patients about outstanding balances. To ensure that everyone is properly trained, a practice must invest time, energy, and money into its employees. A broken link in the revenue cycle can disrupt it and prevent a practice from reaching its full economic potential.
The process is not fully engaged by the lead physician
A medical practice’s lead physician must be actively involved in the revenue cycle management healthcare process. It makes no difference if the office manager is competent; the lead physician must be present to review revenues, collections, and billings. Although you want a system of checks and balances within your practice’s revenue cycle, it must start at the top, with the lead physician. They may decide to change a process, in which case everyone must be on the same page and agree. Otherwise, it may result in delays and possibly revenue losses. 1xbet