Healthcare revenue cycle management is an essential function for the efficient running of a healthcare facility’s finances. In the efforts to provide quality patient care while also keeping costs as low as possible, healthcare practices must be able to maintain strict control over revenue collection. The key to this is the systematic management of the revenue cycle, i.e., the life of a patient’s account from the time it is opened until final payment is received.
Effective revenue collection is essential
The longer an account remains unpaid, the lower the chances of full settlement. According to estimates from the Department of Commerce, an account that is 60 days overdue has a 70% chance of recovery. This chance drops dramatically from then onwards. An account that remains unpaid after six months has only a 30% chance of complete recovery.
The problem is that revenue collection and revenue cycle management (RCM) are tasks that require a high degree of focus and a lot of time. Most administration departments don’t have the capacity to devote as much time and energy as they should to RCM. This makes it essential to outsource patient revenue management functions. Here are the main benefits of doing so:
- A higher percentage of invoices and claims paid after first submission
- A higher percentage of current claims (0-60 days)
- Lower rate of denial
- Improved revenue
- Reduced outstanding accounts receivable
- Faster payment
- Fewer lost claims
- More time and energy freed up for customer service and patient care
Grace Federal provides a variety of services to healthcare facilities, including operations and administrative support, as well as healthcare revenue management. Contact us if you need help managing your RCM and freeing up more time to care for your patients.