Have you noticed how certain medical practices appear to operate as if they are clockwork, while others struggle for a way to stay lit?
The reason for this is usually how they handle the money flowing out and coming in. Healthcare revenue cycle management helps keep the cash flow in check by separating out charges, billing and other payments without skipping an ounce.
This article looks at how the management of the revenue cycle in healthcare affects the financial picture of practices large and small.
Healthcare Revenue Cycle Management – The Money Maker
Speeds Up Cash Collection
Paying quickly keeps the costs paid. Revenue cycle management in the healthcare industry helps ensure that insurance claims are processed quickly and on time, cutting down on the time it takes to process funds.
One clinic in particular saw their cash flow rise by 20% after resolving the sloppy claims submissions that would have been unpaid for weeks. Paying faster means more money in the bank, which helps keep things running smoothly.
Catches Billing Mistakes Early
Billing errors can drain money if they fall through.
A reliable system double-checks the codes and charges before they reach the payer, thus preventing delays that take the time and effort needed to fix. One practice lost thousands due to staff members ignoring procedures codes and tightening the procedure to stop leaks rapidly.
Lowers Unpaid Bills
People who don’t pay their bills can be at a loss for profit. Healthcare revenue cycle management tracks down owed amounts and follows up with prompt messages or plans for payment. One office cut overdue accounts by a third by sending text messages instead of relying on people to remember to pay.
A lower amount of bad debt means that more money stays where they belong.
Keeps Costs in Check
A shoddy revenue setup costs money by requiring additional staff time or hiring assistance from outside to chase payments. A well-designed management system simplifies the task, ensuring that employees are required to sort it out.
One hospital was able to cut some of the overtime compensation after moving to a simpler procedure that didn’t require constant babysitting.
Slashes Claim Denials
Unaccepted claims can be a pain which can be a financial burden. Healthcare revenue cycle management identifies problems like missing information or inaccurate patient information prior to making a claim, which helps keep denials to a minimum.
The office of a doctor went from a 15% denial rate of % to less than 5 percent after they got their paperwork in order. More rejections mean more claims, without the back-and forth.
Saves on Tech Troubles
Inefficient software or unwieldy systems drain cash through bugs and repairs. A well-planned revenue system makes use of tools that run smoothly and remain current, avoiding costly failures.
One business threw out their old software after it went down in the middle of a busy month and cost them many days of billing that was not paid and the new one has paid for itself in a short time.
Boosts Staff Focus
If the cash side is running well, the team is able to concentrate on the most important thing: treating patients. Unorganized revenue processes pull people away from the front desk or the exam rooms to deal with calls from insurance.
One nurse claimed she received the time back every week after the billing problems were dealt with which allowed her to assist more patients instead.
Gives Clear Money Insights
Knowing where the cash is will help you plan your next move. The healthcare revenue cycle management hand over reports showing the amount of money coming in, what’s not and what’s going to disappear.
Clinic owners used these figures to identify an unproductive month in advance and alter the scheduling to maintain a steady flow of revenue. Data-driven analysis keeps guesswork off the table.
Helps Dodge Legal Hassles
Incorrect billing can put an organization in hot water, due to regulations such as HIPAA or audits of payers. A well-organized system helps keep things in order and avoids penalties that could eat away profits. One company escaped a significant penalty because their records proved each charge was genuine at a check-up surprise.
Builds Patient Trust Too
The happy customers stay around and pay. When bills are honest and clear it’s less likely for them to contest or ignore invoices, keeping money flowing.
The practice resulted in fewer complaints and more on-time payment after making invoices simple to read and comprehend.
Wrapping It Up
Healthcare revenue cycle management isn’t just a matter of paperwork, it’s the core of a clinic’s financial health. It helps to bring in more cash as well as plugs leaks caused by errors and stops costs from escalating and letting staff concentrate on patient care.
The bottom line is boosted when the revenue side is working simply. Are you looking to see your profits increase without stress?
Check out PerigonMed for services that get the money part right.
