Revenue cycle management revolves around the process of managing and increasing the cash flow of the organization. A smooth cash flow management with the least number of claim denials indicates effective revenue cycle management.
However, revenue cycle management is not a piece of cake. It ranges from billing the patient to getting the healthcare professional reimbursed and documenting and reporting the reimbursements. What makes revenue cycle management a challenging process is the sub-processes included. To better understand the complexity of RCM, let’s have a closer look at the aspects it consists of.
Aspects of Revenue Cycle Management
The Foremost step in managing the revenue cycle is getting a good revenue stream. When a healthcare professional bills the insurance company of the patient properly, chances of getting the reimbursements are elevated to a great extent. The second face of billing is medical coding. Medical coding refers to the process of entering correct codes for the medical procedure and services provided to the patient. According to a study done by CDPH, 80% of the claims are denied because of coding errors.
Moving forward, revenue cycle management includes the verification of details. The aspect consists of verification of all the details of the patient and the insurance. The verification process helps avoid any bogus insurance companies and refrains from fraud, keeping our revenue cycle safe.
Next, we have claim filing. It is the process where the filing of the claim happens. The intricacies of the process involve around following the guidelines of the claim and the recipient.
Down the road, the revenue cycle management includes proper negotiation and collection strategy. It is impossible to work with an insurance company in the healthcare sector and close the case without negotiating.
Once you are reimbursed for your services, revenue cycle management manages your cash flow. Revenue cycle management also offers you cash flow tracking.
Last but not least, revenue cycle management also takes care of reporting. Clear and concise reports about your revenue help the practice identify where the problem lies.
Perks of Outsourcing Revenue Cycle Management
Revenue cycle management is not child’s play as it can affect your reimbursements and hence, your cash flow. But as a healthcare professional, you cannot do everything, or you will be left with no time to do what you were meant to do, i.e., look after your patients.
Outsourcing revenue cycle management seems a legit option because it has many benefits. Let’s have a look at those benefits to have a better judgment about the topic.
We all know that reimbursements can take months to process. Consequently, leaving you high and dry and without any cash to continue your practice. However, if you outsource your RCM, there’s a much higher chance of getting timely reimbursements.
Outsourcing revenue cycle management is much more budget-friendly than hiring an in-house revenue management team. It is because when you outsource the task, you only pay for the job. On the other hand, hiring an in-house team would mean more costs to businesses with employee benefits, office supplies, utilities, and employee insurance.
Outsourcing your revenue cycle management will save you from a lot of hassles. You are free from their training with outsourced revenue cycle or virtual employees. It means you wouldn’t have to spend your time and cost on training the employees and pay for their mistakes.
More Time to Practice
Wouldn’t that be great if there was a way where you could do what you were meant to do? An option that would allow you to care for your patients instead of being busy with the documents for the better part of the day.
Yes, you guessed it right. The answer to this problem is outsourcing the revenue cycle management. When most of your tasks are outsourced, you are only left with your part, your passion, which is to look after your patients. Outsourcing revenue cycle management would also increase your focus as you would be walking stress-free.
The Final Remarks
In a time when almost everything is disrupted by the global pandemic, it is of utmost importance that private practices optimize their revenue cycle. Outsourcing the revenue cycle management would save you a lot of time and effort. Moreover, it’s the best way to get results with the least amount of stress.
The time is changing; practices are evolving, and it is time to catch pace and move with the world.