Hospitals, small practices, and healthcare systems are known for saving lives and treating patients on a daily basis non-stop. Every organization needs to develop a successful process that makes them stay financially healthy and is more time efficient.
What is Healthcare Revenue Cycle Management?
Healthcare revenue cycle management is the financial process that facilities use to manage the administrative and clinical functions associated with claims processing, payment, and revenue generation. The process encompasses the identification, management, and collection of patient service revenue.
Without this key financial process, healthcare organizations cannot keep their doors open to treat patients. Healthcare revenue cycle management is the strategy that healthcare organizations use to pay the bills.
How the process starts…
Healthcare revenue cycle management begins when a patient makes his or her appointment to seek medical services and ends when all claims and patient payments have been collected.
To start, when a patient arranges an appointment, administrative staff must handle the scheduling, insurance eligibility verification, and patient account establishment.
Pre-registration is key to optimizing healthcare revenue cycle management processes. During this step, employees create a patient account that details medical histories and insurance coverages.
Why medical billing is important to the Healthcare Industry
Managing your revenue cycle efficiently can bring many benefits to you. Many of these benefits include increasing revenue throughout the various processes by first identifying points of friction and then resolving them.
The rapid pace of technological improvement has also greatly improved medical billing through electronic data interchange made available by healthcare clearinghouses and electronic claims submission. Technology has improved many other areas but also resulted in new security issues. Medical revenue cycle management also includes medical records and how they are accessed and stored for billing purposes.