Revenue cycle management (RCM) is a major challenge for many healthcare facilities and providers, including dentists, clinics, hospitals and other such providers of medical care. From late payments to incorrectly-coded procedures that result in claim denials, the complexity of RCM can make it frustrating for many medical professionals.
But modern technology holds the key to streamlining RCM and providing medical staff and patients alike with a better healthcare experience. Below, we’ll discuss a few of the most common problems associated with revenue cycle management in healthcare, and how technology can help.
The Challenges Of Revenue Cycle Management In Healthcare Facilities
The challenges of RCM in healthcare facilities are too numerous to list in full – but three of the most important challenges in today’s healthcare environment consist of:
- Complex patient registration – Denials based on incorrect patient registration – ranging from typos in names to improper date of birth, incorrectly-entered insurance information and other such minor mistakes often result in non-clinical insurance denials, and can complicate the process of patient billing.
- Coding errors – Coding errors are a common cause of insurance coverage rejections, and can also result in liability for physicians and healthcare providers. In some cases, poor coding processes can even result in penalties from regulatory bodies, making optimal coding input a major priority for most healthcare facilities.
- Late payments/billings & collections – Once the patient has received care and insurance has paid its portion, it can often be difficult to obtain balance payments the patient, which can lead to revenue and cash flow issues.
How Technology Can Overcome These Challenges & Boost Profitability
Modern technology and medical billing software can address multiple aspects of the challenges posed by revenue cycle management. Here are just a few of the ways in which automated tools and advanced technology can boost profitability and help you overcome common RCM challenges.
Analytics for business insights – Analytics tools can track Key Performance Indicators (KPIs) for things like claim denials, on-time bill payment from patients, total number of outstanding claims, and other information. These technological solutions enable healthcare providers to focus on particular areas of improvement.
- Automated patient registration – Tools that automatically verify patient information and insurance can reduce the complexity of patient registration, and catch errors – such as when patients are not covered by insurance. This simplifies the experience for patients and healthcare providers alike.
- Claim scrubbing tools – Newer healthcare management software often includes claim scrubbing tools, which help improve the overall accuracy of coding and claims, and help eliminate manual workflows for coders, which also reduces errors during the process.
- Automated denial management processes – It’s estimated that nearly ⅓ of all healthcare providers are using manual denial management processes. Automated tools can eliminate much of this manual labor and speed up the efficiency of managing denied claims.
- Simplified bill pay – Online portals for bill payment, automated due date reminders, and other such technologies can be used to enhance timeliness of patient payment, and automate bill collection.
Know How Your Company Can Benefit From Revenue Cycle Management Technology!
No matter your area of healthcare, you can benefit from implementing advanced revenue cycle management tools in your practice. So consider your options for improving RCM now – and see how you can boost profitability and patient satisfaction.