Did you know that the average hospital loses $100,000 per day due to inefficient RCM? That’s why hospitals are turning to revenue cycle management services to help them maximize their revenue.
Where other operations of the medical industry have been handled with updated technology, cash flow processes have also been conducted with the help of advanced methods. One of them is RCM, which provides a strategic approach to managing claims and revenue that increases the likelihood of successful process execution. But many hospitals that can’t conduct RCM in-house opt for RCM services. What exactly are these services?
There are many companies that provide revenue cycle management services to hospitals, making their revenue generation process easier and less burdensome. Let’s have a look at our guide on how these services help hospitals maximize their revenue while requiring less concentration.
Challenges When Performing RCM In-House
RCM in hospitals requires careful attention and adequate focus. But many hospitals can’t keep their all concentration on a single process. Additionally, there are several challenges that hospitals face during in-house RCM. If these difficulties are not dealt with on time, it can result in huge revenue loss.
Technology Evolution
One of the big challenges hospitals face when conducting RCM in-house is evolution. Emerging trends and decreasing patterns result in many techniques either being upgraded or completely vanishing from the industry. Hospitals that are already very diverted in a range of services won’t be able to understand all evolving trends and act accordingly.
Accurate Coding
Coding is a core element of revenue generation as charges rely on correct coding in medical billing. AMA is responsible for managing these CPT codes in medical coding and they make continuous changes, addition, and deletion of codes. Constant learning and awareness are almost impossible as it requires attention. Therefore, hospitals may face a huge number of claim denials due to the wrong claim charge or other code-related issues.
Trained Staff
Another difficulty associated with in-house RCM is that you don’t always find the perfect staff. Talking especially about small practices, they don’t have enough resources to hire professional staff or even train their current personnel. This results in poor revenue cycle management and ultimately revenue loss.
All these problems may hinder your growth and stop you from generating ample revenue, that’s why we emphasize conducting your RCM through external resources i.e. revenue cycle management services. If you have already made this decision then you have made a wise choice.
Now let’s see the process that RCM service providers will conduct to gift you with your revenue.
What Does The Process Involve?
Managing the revenue cycle in healthcare organizations involves a comprehensive process, encompassing every step from the moment a patient schedules an appointment to the receipt of payment. That’s where Revenue Cycle Management (RCM) services come in. It offers a streamlined solution to optimize the entire revenue collection process.
The journey of medical revenue cycle management services begins when a patient books a consultation or receives any medical service. To ensure a smooth revenue collection process, the team of RCM experts assists the hospital staff in creating a patient account. This record is meticulously filled with all the necessary information required for efficient revenue management.
Once the account is created and the patient completes their visit or treatment, healthcare service providers take charge. They compile all the charges and details into a carefully prepared claim. This application is then submitted to respective insurance providers for swift reimbursement.
However, the reimbursement process can sometimes be time-consuming and complex. When there is any issue in the claim application, revenue cycle management services stand ready to assist. They address any identified problems, working closely with healthcare staff to promptly resolve them, ensuring a smooth and hassle-free reimbursement process.
Benefits Of Revenue Cycle Management Services
Revenue cycle management services provide a number of benefits to your healthcare facility. As their workforce usually possesses years of experience, every single step managed by them hits sixes. That means, your project is completed with a full success rate and desired outcome.
Increased Revenue And CashFlow
For large hospitals, catering to hundreds of clients, it becomes a headache to oversee all claim applications with full revenue generation. Most of the time, a lack of focus on each application may result in claim discrepancies or even reduced healthcare performance.
That’s where revenue cycle management services come in. They usually have an extensive staff, with each individual assigned to only several claim applications. This means, each of your claims will be managed with the full attention it requires, which results in greater revenue and stronger cash flow.
Improved Efficiency And Productivity
When you don’t have to worry about your claims all the time, you can work hard to make your services better. You can be more focused on the healthcare services that will guide you to the lacking area within the hospital. This way you can boost your efficiency and productivity towards providing more suited services to the patients.
Reduced Billing Errors And Claims
Revenue cycle management services are often backed up with future-driven software. They can identify claim denial patterns to make future claims error-free. Besides, they can predict what future advancement may hurt the revenue generation process, which enables them to alter their current strategy and ensure constant revenue generation.
In order to know more about the best companies that provide RCM services, click on the button
Enhanced Patient Satisfaction
Hospitals that pay more heed to make their services better end up with enhanced patient satisfaction. They are well aware of the problems their patients face and work towards resolving those issues and making their patient’s life improved. RCM services enable you to just do this. They will work on your behalf to generate revenue while you are busy enhancing the patient’s life.
Compliance With Regulations And Billing Standards
Companies that provide revenue cycle management services are well-equipped with government and as well as industry rules and standards. They make sure to keep all RCM steps under healthcare laws to avoid any obstacles. This enables you to run your healthcare facility without facing any legal issues.
Wrapping Up
In this guide, we have provided you with an overview of revenue cycle management services. We have discussed the importance of RCM, its benefits, and the process it entails. We hope that this information has been helpful and that you will now be able to navigate the medical billing stages with confidence.