It seems like margins have been improving after all of the changes to healthcare over the last few years – mostly thanks to containing costs and the impact of the Affordable Care Act and coverage expansion. However, the future of healthcare is tenuous at best, and revenue cycle performance is critical to keeping costs down and margins at the range they are now or even higher than they are now.
Why Hospitals Could Be Making More with Revenue Cycle Management
While there is no denying that hospitals are making money, it has been proven that hospitals are leaving quite a bit of money on the table and aren’t getting what they could. While of course performance and efficiency of workers can play into that, the more significant loss of money comes from the revenue cycle itself. While the techniques used in the hospital rooms, for training, and even for something as simple as washing our hands have improved, few people have sought to improve their financial cycles. It’s a shame – because that needs more work than opening doors or dispensing hand sanitizer.
So how can revenue cycle management help you? It will cut down on some of the “little” things that you do all day that just take up time when you could be doing something else – like calling insurance companies, billing, filing, administrative work, pre-authorizations, calling clients, scheduling appointments, and more. It is still that all of this is happening when there are ways to do it for half of the cost and a fraction of the time.
So let’s take a look at six specific ways revenue cycle management (RCM) can impact your bottom line:
Revenue Cycle Management Improve Collections
Of course, collections will make or break your healthcare management. Effective revenue cycle management will always include a strategy for collections, an approach that is malleable enough that they will work for you, but strict enough that they will still work as tested.
The best revenue cycle management systems include timely reminders, many different payment options, and always follows best practices for collections.
Revenue Cycle Management Improves Productivity
Notice a lack of productivity among your staff? One of the most overlooked benefits of using revenue cycle management is that it increases productivity manifold. Your staff will feel better at work, of course, because they aren’t bogged down with little things. Your team will be able to spend less time chasing down smaller items like collections, correcting system codes, and calling patients.
While revenue cycle management doesn’t reinvent the wheel, per say, it does make your existing systems.
Revenue Cycle Management Improves Team Morale
Like mentioned above, your team will feel better and work together better thanks to appropriate revenue cycle management. When employees feel better, they are more productive and tend to do a better job. While this isn’t always the case, it is something that you notice. Even more, your patients, insurance companies, and anyone else you come into contact with in a day will be happier and in better moods.
When your staff is happy, everything seems to go much, much better.
Revenue Cycle Management Improves Compliance
Compliance is vital in the healthcare industry, especially for those who have faced problems with it in the past – people are always on the lookout. Effective revenue cycle management helps to ensure that you are compliant, and you stay compliance at all times – and that patient data is always protected.
The most important thing is that you follow a process so that you can make fewer errors. With revenue cycle management, following that process is almost always automatic and effortless.
Revenue Cycle Management Improves Patient Happiness
Though sometimes they may cause problems, you wouldn’t be anywhere without your patients. When you have a well-formulated revenue cycle management plan that ticks all of the boxes, patients will notice the difference and be more likely to stick with you. Even more, they are more willing to listen to what you say because they trust you overall.
Even better, they are more likely to be in a better mood when they come back to see you after having a smooth registration and wait time.
Revenue Cycle Management Improves Your Bottom Line
Finally, revenue cycle management will improve your bottom line. Simply put, you will be collecting more, spending less, keeping employees, and attracting more employees. All of these factors work together to enable you to get where you want to be.
Interested in revenue cycle management? Make sure to reach out to us to find out more information about how we can help you to achieve all of the above.