What is Revenue Cycle Management?
The medical industry is much more than just diagnosing diseases and curing illness as most people would assume. There is a hidden logistical side of the doctor’s office that you probably don’t think about: Revenue cycle management.
Revenue cycle management is immensely critical to the practice’s success. Without a system to manage revenue, your practice management risks losing time and money in the hectic nature of the health care business.
What Is the Revenue Cycle?
The revenue cycle is the process between when a patient calls for a doctor’s appointment and when their bill is completely paid off. This process involves setting up and receiving payments so medical services are compensated.
The first step in the revenue cycle is appointment scheduling. After a patient schedules an appointment, it is up to the doctor’s office to verify insurance and eligibility of a particular patient and then settle the claim. This assures that the patient’s health care has a means to be taken care of and paid for.
Further down in the revenue cycle is billing and patient follow up. These steps close out the cycle until the whole medical bill is paid off and the cycle is no longer needed. This cycle outlines the procedures that a doctor’s practice has to undertake in order to get paid.
Why Is Revenue Cycle Management Important?
Medical expenses and payments are difficult to keep track of. Your practice can be severely set back if you lose one important piece of data or fail to accurately verify your patient’s insurance.
Forgetting to verify the information before the doctor visit makes verifying the patient much more difficult when they walk in. The verification process can take a while, which throws off schedules of both you and your patient.
Not only does lack of management make the revenue collection process more difficult, you might lose money as well. When you miss claim information, you risk not receiving payments as they can slip through unnoticed. With a revenue cycle management system, you ensure that all payments are taken care of and paid for.
Revenue cycle management is an important step in making sure that your practice gets paid for its services and that data problems don’t slip through the cracks. Missing even one piece of critical data can delay the simplest appointments and cause hassle. These management systems take care of easily-to-lose information and ensure that you gather every necessary piece of data so you can complete your transaction.
In addition to accuracy, electronic revenue cycle management systems also are automated to help save employees’ time. The claim submission, billing, patient follow-up and other revenue cycle components is performed automatically so your office staff can focus on other tasks.
Maintain an Effective Practice With a Revenue Cycle Management System
It is difficult to maintain an effectively functioning doctor’s office without a system specialized to organize revenue data. Even the most meticulous of receptionists can make mistakes, so give them an added resource to assist them with this task.
Using a revenue cycle management system will not only add extra structure to your billing practices, but will also assure that your practice gets paid for all the hard work your employees push through.