Revenue cycle management encompasses all the steps a patient takes from scheduling an appointment to clearing his or her account balance. If you are a health care provider, revenue cycle management is crucial for the financial performance of your company. Here are some critical factors to consider:
Managing your capacity, patient volume, and price you charge for your services is mostly under your control. Focusing on your payments and collections will yield better results in optimizing your revenue cycle and cash flow.
Payments include patients’ out of pocket costs in addition to reimbursements from insurance companies. You need to focus on claims reimbursement because they comprise the biggest share of the pie in your practice. You should aim to turn claims into cash as quickly and as efficiently as possible.
The bulk of collections is the balances owed by your patients after the insurance companies have paid their share. In addition, some patients opt out of insurance and choose to pay out of their pockets or owe the amount. The way to quickly collect the money you are owed is by instituting best practices like insurance eligibility verification, prior authorizations, and others.
Tools and Technology
There are various tools available to optimize your revenue cycle. These include workflow and practice management systems.
Hiring a Revenue Cycle Management Company
Hire the services of a revenue cycle management company would greatly help in optimizing your revenue cycle and realizing your revenues efficiently.