Revenue management involves managing bills and payments from clients. These individuals follow several revenue cycle management steps. This healthcare practice is should be highly efficient to ensure solvency and the ability to provide high-quality medical care.
Revenue cycle management has several steps. The first step is identifying the services that were provided to clients. Physicians record this information in the patients’ medical records, and it is then transferred to the claims or charge capture system for billing. Then, the patients’ charts are addressed. Their services are coded using medical billing codes.
Then, these records are used to submit claims to the clients’ medical insurance companies. Billing managers may have to communicate with insurers multiple times to ensure collections and address payment denials. After the insurance companies pay their part of the medical bill, the patient is billed for any remaining balance.
Patient communication is key in this step because these individuals may not understand what they are being billed for and why the insurance company didn’t cover everything. They may also require payment plans. Finally, medical facilities review their clinical data, including treatment times and costs, to determine where they can cave costs and improve their resource allocation and use as well as their patients’ health outcomes.
Revenue cycle management automates the billing process and allows healthcare providers to focus on patient treatment. It reduces their cost and the time they spend on billing. These services also reduce errors because the medical records and revenue cycle management software packages transfer data directly without human interactions. In addition, billing tasks and reminders are automated, reducing administrative staff duties.
Aside from challenges with patient payment collection, government regulations create challenges in revenue cycle management processes. These regulation changes cause billing and financial inconsistencies in these institutions. In addition, Medicare and Medicaid have begun to tie their payment to patient outcomes not the services the medical professional provided to the client.
If you are looking to automate and improve your revenue cycle, consider revenue cycle management solutions.