What is revenue cycle management, exactly? Read on to learn everything important you need to know about revenue cycle management.
In every branch of the healthcare industry, administrative costs are quickly rising. If you haven’t put in place a solid revenue cycle management process, you’re going to struggle to keep the lights on. Understanding the process will likely mean making a few mistakes, but it will help you keep money flowing into your practice.
Here’s everything you need to know about the process.
Understanding Revenue Cycle Management
Revenue cycle management in the healthcare field is an important process in keeping your business running. If you don’t manage your revenue carefully, you can quickly spend beyond your means and run into problems. If you overspend beyond your bills or beyond your payroll, you can run into trouble generating revenue, breaking down your cycle.
As your business manages claims, processes payments and works to generate revenue, each element requires adequate attention. With software to help manage your practice or at least handle your billing, you can keep track of what’s coming in and going out of your office.
On a broad range, the healthcare revenue cycle will manage elements like your patients’ eligibility for insurance and collecting their co-pay. Every claim needs to be coded correctly, and claims need to be tracked accurately. When you collect claims and follow up on the ones that are denied, you can ensure that you’re accurately juggling your revenue.
Every element of the collection process helps contribute to revenue you can use to provide more services. This, in turn, will require more collection efforts and the cycle will continue.
Training Is a Hurdle
In the revenue cycle, you need to ensure that you have adequate staff. If you run a small practice, you may struggle to keep on top of your patient billing. If you don’t bill people on time, you can’t expect to be paid on time.
If your staff hasn’t been trained properly, you’ll find it could be a hurdle to optimizing your revenue. The money flowing in and out of your practice is much like a supply chain in that if one person fails to do their job, the rest of the chain could suffer failure.
If your staff isn’t properly trained to look for errors in their claims or to understand the depth of medical coding, it could lead to poor data entry. When patient information is entered incorrectly, the bill to the patient may never arrive. You could end up with some costly mistakes if you don’t carefully manage your supply chain or let your employees know why their mistakes matter.
Communication Is Important
Communication can make or break any business. In the context of a revenue cycle, you need your staff to be communicating clearly even on the busiest of days in your office. When everyone knows their role and how they rely on one another, they can help the revenue cycle roll on.
Your office managers and physicians need to be in regular communication. They need to feel comfortable talking to one another about financial reports and what’s going on in your office.
When everyone in your office understands the important details about collections, revenue and how their actions matter, they’ll help lead you to success. If your basic accounts receivable data isn’t in on time, you could be lagging behind on payments and your whole workflow could be upended.
Communication requires a strong workflow. You need your intake staff to check for patient eligibility and the copay situation before the patient arrives at your office. This will help you work smoothly.
Your staff needs to be able to follow up on your claims quickly and promptly. If you don’t have a workflow established, you could end up dropping tasks or end up with delays. The more errors that your office incurs, the more money you could be losing.
Finding the Right Solution
When you’re searching for revenue cycle management solutions, you’re going to have to look at the nitty-gritty details of what your solutions can offer. The results you’re searching for should be those that rely on efficiency.
In order to become financially efficient, you need tools that will help you optimize your revenue cycle. Every tool you use should be putting you one step closer to increasing revenue for your office.
Billing is a headache for every medical office under the sun. There are a lot of pitfalls in the healthcare industry and a lot of mistakes that can be made.
When you’re managing employees and trying to find a tool, you need one that’s easy to use and doesn’t take too long for your office to train on. Without the right processes in place, you could be losing revenue from your office. However, don’t let that drive you to put things off and wait too long to solve your billing issues.
Expect a learning curve when it comes to managing your revenue cycle, but be sure to find a company that offers great customer service. They’ll be able to guide you through any difficulty you have with using their tools.
Revenue Cycle Management Requires Buy-In
In order to achieve the revenue cycle management you need for your office, everyone must buy in at the same time. You need to have a steady management process through which you work together to solve problems.
IF you’re considering outsourcing your medical billing, follow our guide to ensure that you choose the right company and everything runs smoothly.