Importance of Revenue Cycle Management in Healthcare Industry
Hospitals are considered as abodes that can safeguard the lives of people. Revenue Cycle Management process is the secret behind the scenes for disbursing state-of-the-art treatment procedures to patients in these healthcare settings. To take care of people’s health by functioning flawlessly, a healthcare setting must have an efficient Revenue Cycle Management process working for it. Revenue Cycle Management is considered as the backbone for the healthcare industry and it is a must need for a healthcare provider’s success. A well-rounded Revenue Management Cycle is directly proportional to a hospital’s success and uneven handling of the RCM process can lead to hassles which directly affects the financial position.
So in short, Revenue Cycle Management Services play an important role in protecting the healthcare providers’ financial position by enabling the smooth flow of clinical and administrative functions. An Efficient RCM Team, looks after the processing of claims, reimbursements from insurance providers and all the revenue related functions necessary for the uninterrupted services. RCM Services are the only reasons responsible for the delivery of friction-less healthcare to patients worldwide.
Even though there are many definitions for Revenue Cycle Management, the most popular one states it as an entire suite of services that is responsible for the generation of revenue in a healthcare setting. Revenue Cycle Management is not a single process as many people think but a set of services constituted together. Revenue Cycle Management includes the whole process from the patient fixing an appointment at a particular hospital to the final reimbursement of his treatment bill by the insurance provider.
Revenue Cycle Management process contains various functions like
- Scheduling payments and verification of insurance coding and charge entry
- Submitting Claims
- Processing of payments and posting
- Handling Denials
- Sending Statements to Patients
- Final Auditing
A wholesome Revenue Cycle Management process acts as a bridge between the patients, healthcare providers, and the insurance companies. Many RCM companies offer their suite of services to healthcare providers worldwide.
Though there is vast development in the field of Revenue Cycle Management in the form of new technologies in RCM Services, there are still a lot of challenges to be addressed. Minor mistakes in Revenue Cycle Management services can cause major losses for the healthcare providers. Henceforth, healthcare providers should employ personnel with high-level skills in the Revenue Cycle Management process to ensure the reduction of erroneous claims that lead to non-reimbursements by the insurance companies.
Some of the factors that plague the Revenue Cycle Management in a Healthcare Facility are mentioned below –
- Improper training and lack of experience in Revenue Cycle Management for the employees which lead to errors in the Claim Submission process that leads to disastrous results. Even a small mistake in the Patient’s Name can provide a huge dent to the health provider’s financial status. Trained Personnel in Revenue Cycle Management processes are required, in order to attain supremacy in their Revenue Cycle Management cycle.
- Revenue Cycle Management is an ever-changing field as it is flooded with new advancements in RCM services on a daily basis. Healthcare providers must be compliant with the new guidelines and update their Revenue Cycle Management process regularly.
- Though manual intervention is a must in the Revenue Cycle Management process, Healthcare Analytics has taken hold of most of the RCM billing services. As everyone can’t afford the AI and analytics suites, they must train their employees to match the level of the latest technology to deliver state-of-the-art Revenue Cycle Management Services.
Knack Global can assist in adapting to the new advancements in the Revenue Cycle Management process and increase your revenues for the successful functioning of your Healthcare Facility. With no overhead costs involved, your practice gets best in class RCM Solutions.