Revenue Cycle Management is the procedure whereby healthcare facilities and practices manage the whole billing lifecycle of the patient, from scheduling and registration to the final payment. It’s an essential part of running a healthcare facility. Note that how effectively it is managed defines the success of the practice. Here are the things that affect the Revenue Cycle Management.
Factors that affect the revenue cycle
Many things can affect a practice’s ability to maximize revenue collection and reduce the time required for payments to be made. These factors include:
Patient experience is the most significant impact on the revenue cycle. Therefore, it’s important to conceptualize the patient experience since it relates to the revenue cycle and find out how these paths intersect.
Well-versed patients tend to fulfill patient duties more effectively than uninformed patients effectively. So, it’s important that patients know what’s expected of them from the beginning. Outline their financial obligations before they get the services. Explain the available payment options and make paying simple. The patients will have a better experience, the Revenue Cycle Management of your practice will be streamlined, and the revenue will increase. Furthermore, you must remain connected through the patient portal or any platform that offers access to health records, payment records, and secure messaging options to the service provider.
Patients who don’t have health insurance will be needed to pay the whole amount on their medical bills. Based on their treatment, the patients can experience hardships in paying and lead to lost revenue for the practice. For this reason, it’s important to verify insurance eligibility before offering the services. Make sure you provide several payment options, like payment plans and financing.
Patient billing and collection
Patient payment collection procedures can be time-consuming and arduous. With no organized and consolidated system, billing mistakes are prevalent and confusing. This can lead to patient frustration and delay in payment. With Revenue Cycle Management, you can accept any type of payment, providing the capability to set up payment plans, estimate patient financial duties, and file claims properly. This means your practice can optimize the collection procedure and lessen the number of invoices that go unpaid.
Compliance and data security
Particularly in the current climate of security breaches and hacking efforts, the security and compliance of your health care data are important. The safety of patient data is part of providing a vital patient experience. A practice whose information is insecure and breached will affect its revenue cycle and be hit by fines.
Revenue cycle best practices
While building or adjusting your Revenue Cycle Management plan, there are practices that can help you make your revenue cycle efficient. They include:
- Setting clear patient expectations
- Analyzing trends
- Identifying and resolving problem areas
- Submitting claims daily
- Sending reminders
- Offering several payment alternatives