In this article we will learn the following;
- Understanding Revenue Cycle Management
- Benefits of Revenue Cycle Management
- How to effectively leverage the benefits of RCM
AVERAGE READ TIME: 5 Minutes
“Whatever is worth doing at all is worth doing well”- Phillip Stanhope
The goal of any business is to ensure the satisfaction of customers, improve revenue and generate profit. To get this done; businesses need to focus on operational processes. This is the goal in Revenue Cycle Management.
What is Revenue Cycle Management?
Revenue Cycle Management (RCM) refers to the process of handling processes that affect revenue generation in the healthcare industry. The method of clinical treatment is never a single transaction as there are complex processes that you need to follow consistently.
RCM is crucial to the continued existence of a business. The process begins right after the patient schedules an appointment, and it goes on until all the necessary steps have been taken. For healthcare providers, this may appear as a distraction from their primary service of managing patients. This is why hospitals have to pay attention to revenue management.
Outsourcing is a business practice where a third party handles certain job functions for a company. Several benefits come with outsourcing RCM, and we will check them out below.
CREATING A PREDICTABLE CASH FLOW
According to the American Medical Association (AMA), up to 10% of claims are denied. With RCM, businesses can create a structure that ensures cash flow and avoid losses. There are several methods and tools with which you can determine medical billing, amongst other things. For RCM to work, you need to have professional billing agents who are working round the clock to ensure timely reimbursements consistently. By creating a sustainable model, you can determine several factors and predict cash flow.
CONSISTENTLY TRACKING CLAIMS
The consistency with which companies track claims will primarily determine cash flow. Claims could get denied or delayed when mistakes occur. This is why they need to be processed regularly by professionals. Businesses that choose to run RCM internally often spend hugely on the consistent training of their revenue cycle staff. With advancements in technology and machine learning, companies can significantly minimize billing mistakes.
Consistency in tracking claims is just one way to stay proactive. There are several other ways to ensure that your business is always a step ahead. This is why companies need to aggregate data regularly and establish a centralized database. By pooling data from clinical and financial systems, healthcare providers can identify billing trends. The overall goal of RCM is revenue increase, and this can only happen when you identify loopholes and fix them. After these loopholes have been fixed, then you can focus on patient care.
BRIDGING THE GAP BETWEEN BUSINESS AND MEDICAL CARE…
Hospitals that outsource RCM can focus on attending to the needs of patients while professionals handle business processes. Over time, there have been constant debates over the importance or necessity of outsourcing RCM to professionals. However, many analysts agree that there are numerous benefits of outsourcing RCM.
Outsourcing is a great way to manage the growth of a business, and it can help your business in several ways, such as;
ALLOWING YOU TO FOCUS ON PATIENT CARE
Monitoring RCM can be a considerable distraction to professionals in the healthcare industry. When you outsource RCM to credible hands, then you can focus on ensuring that your patients have a fantastic experience.
One primary objection against outsourcing is its cost. However, there is a significant increase in revenue that comes as a result of outsourcing your RCM. By paying regular attention to RCM, you can increase cash-flow, and this will, in turn, positively affect revenue.
Outsourcing also helps healthcare businesses to save money in many ways. An RCM partner takes care of activities such as billing, reimbursements, registrations, and all other processes that are involved during and after the patient checks out.
When you outsource RCM, you may be able to reduce the number of staff that your business employs. It is easier to focus on the medical aspect of the company when you have fewer members of the team.
Also, by outsourcing, you save money that would have been otherwise spent on office spaces and supplies, and software, to list a few.
When you outsource to the right people, then you can be sure of the quality.
The success of RCM is guaranteed when experts handle it. This way, you can be committed to the growth of your business. When you leave Revenue Cycle Management to the experts, then you can be sure that you will continuously leverage the best practices in RCM for growth.
Some bodies control regulatory changes and compliance issues. When you outsource to the right partner, you can be rest assured that you are working with people who will guarantee compliance activities.
Today, the healthcare industry has numerous business challenges that affect cash flow. This is why you need to employ the services of highly skilled professionals to ensure fantastic results.
With shrinking reimbursement rates, increasing costs, and government funding cuts, hospitals are beginning to see the importance of outsourcing RCM. Apart from providing regular documentation for the authorities, professionals help healthcare businesses to improve their financial health.
At Infinit-O, our goal is to create long lasting partnerships with our clients; rendering a strong combination of business consultancy, process optimization, and outsourced services; all utilizing the latest technology to provide excellent value for our clients. We are ISO-certified, HIPAA- and GDPR-compliant, so your company and patient data are safe with us..
We create endless opportunities together that will help you thrive in growing your business while allowing you to focus on patient care, with better revenue margins.
Infinit-O is a trusted healthcare solutions partner that can help you build and operate a dedicated team of well-trained healthcare & RCM professionals specifically designed for your unique needs, with cost savings of up to 70%. We can help you meet your goals, whether they be growth, better productivity or simply bottom-line cost savings. With access to excellent healthcare talent who use cutting-edge technology, we provide some of the best strategic solutions for your business.
We offer Revenue Cycle Management, Healthcare Application Development, Data Analytics, Business Process Management, and other healthcare support solutions.
We have got you covered no matter what your goals may be (whether it is growth, productivity, or cost-saving).
We will identify your unique needs, match you to the right talents, build great teams and grow your business.
We care about the growth of your company and would love create a great partnership with you.
Start small. Exceed expectations. Think infinitely. Think Infinit-O.
Contact us today at;
24/F Pacific Star Building, Sen. Gil Puyat corner Makati Avenue, Makati, 1200 Metro Manila
Mobile: +1 866-727-2504
We hope you enjoyed reading!