Importance of Revenue Cycle Management for Providers

Providing quality care to the patients and getting paid for rendered services are top two priorities for healthcare providers. It is also important for them to use a well-designed RCM or revenue cycle management system for maintaining a steady and consistent stream of revenue.

 

RCM, the process of managing a practice’s claims processing, compensation and profit generation activities is very important for healthcare providers. The fact that insurance companies reject 26% of submitted claims, causing approximately 10% loss per physician, the need for a proper revenue cycle management increases. Only when practices have a proper RCM system in place, it will become easier to reduce bad debts write-offs.

If the life of a patient’s account, from the time the case opens to the time of final payment isn’t managed effectively, your practice will keep struggling in terms of revenue. There is a strong need to incorporate RCM processes as part of the overall business strategy if you wish to improve reimbursement rates. If you are getting paid on time, your clinic will function in an effective manner which in turn will help you provide better medical care to the patients.

Is your RCM streamlined?

If not, then you need to make necessary changes and ensure that your billing and accounting department are on the same page. This will help you avoid discrepancies every time a bill is sent to the patient. Having a streamlined RCM will reduce denial rates, increase average % of claims that are paid after 1st submission, boost the percentage of clean claims, improve net revenue of your practice, bring down outstanding A/R and ensure faster claims payment.

A well-designed RCM system will simplify the process of medical billing and help your practice get paid on time. Since the responsibilities of RCM can be complex and overwhelming, many practice prefer to outsource this task to a billing company. From handling A/R follow-ups to ensuring accuracy in billing, a reliable billing partner manages every aspect of the practice’s revenue cycle.

So if you also wish to improve quality of care without having to worry about handling your revenue cycle challenges, then make sure you are hiring a reliable Medical Billing Company. A company specialised in revenue cycle management will surely help you enhance your cash flow as well as workflow.

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