Healthcare facilities are great at saving lives and improving the health of the community. Yet, sometimes the focus on providing exceptional care affects an organization’s ability to run a business. When a revenue cycle is not catered for correctly, it can dent the organization’s bottom line. See why revenue management remains a necessity in today’s world of healthcare.
Defining Healthcare Revenue Management
As it pertains to the healthcare field, revenue management involves the internal process of managing claims processing. The end goal is to maximize the amount of revenue for the organization. Therefore, it is crucial to carefully intertwine the firm’s clinical and administrative functions to carry out this process.
Reviewing the Revenue Cycle
There is a definite cycle to the way a healthcare’s claim is processed. The process begins when the patient makes and attends an appointment. During this time, the patient receives treatment, which in turn is billable by the organization. The organization then divides the total sum into the patient payment portion and the insurance claim. Once both of these payments have been satisfied, the cycle is complete.
How to Maximize the Cycle
There are certain things a healthcare provider can do to maximize its revenue. Proper medical revenue cycle management begins with getting accurate information during patient registration. This information reduces the time spent to correct insurance information down the road. Next, it is essential to get started on the claims submission process as soon as possible. Accurate coding is vital here.
In the final step, the organization must review posted payments, process statements, and deal with any denials. This process can get out of hand quickly if there is no significant structure in place.
In the end, medical revenue cycle management seeks to get organizations paid as fast as possible. It is also about getting the right amount of payment for the services rendered. To achieve this goal, you may need to work with a revenue cycle management company to keep you on track. For more information about revenue cycle management, get in touch with