5 Ways to Enhance Hospital Revenue Cycle Management in 2023

Revenue Cycle Management

In 2019, community hospitals in the US alone supplied $41.6 billion in unpaid treatment. This sum may seem high, but there are many additional reasons that go into the enormous debt that healthcare organizations are under, which hurts their capacity to make a profit. We will now provide an example of how to handle issues with income in the healthcare sector.

Revenue cycle management is becoming more elusive due to the evolving healthcare industry. Many hospitals are now struggling to retain income under a value-based care payment model as a result of new legislation and reforms that have pushed the industry to shift.

Today’s technological platforms could improve interactions and communications between providers, payers, and customers, leading to a more robust revenue cycle management strategy. Revenue cycle managers should focus on a few key areas in order for a medical institution to maximize reimbursement.

The problems RCM runs into most commonly include:

• Typographical mistakes that occur when patients register, leading to non-clinical insurance payer rejections.

• Inadequate medical coding practices that lead to payment rejections.

• Improper payment management and patient-provider communication are hampered by a lack of digitization.

• Delays in resolving insurance payment rejections cause a delay between seeing the patient and obtaining reimbursement for the treatment.

These problems are still present in the majority of healthcare institutions that operate in various specialties. However, by using certain efficient troubleshooting procedures, these problems may be fixed. Here are five tried-and-true techniques for enhancing RCM to increase output.

Optimal Techniques to Enhance RCM

The five key strategies that you may use to improve clinical processes and healthcare revenue cycles are examined in this article.

1. Utilize Software and Tools to the Fullest to Improve Your RCM

Using software and tools to manage your revenue cycle management software as well as online client portals, the best course of action moving ahead is to simplify client interactions and payments. Data collection is crucial when it comes to upgrading technology and services, and looking at trends in customer metrics like visitation rates, episode occurrences, payment rates, etc. may help your agency make data-based choices. Additionally, centralizing all data related to accounts receivable facilitates better client billing and payment processes.

By allowing users to examine health information, pay outstanding balances, request prescription refills, and message physicians, online portals provide people greater control over their health and wellbeing. Patients may also check in for appointments or reschedule them. Lack of digital solutions slows down the revenue cycle, makes it difficult to engage with customers and suppliers, and detracts from the reputation of your company.

2. Prioritize a Patient-Centered Strategy

A patient-centered approach is another way to improve the revenue cycle in the healthcare industry.

According to study, 49% of patients said that their decision about healthcare providers is influenced by having access to reliable information on charges and services. Meaning that if a hospital implements modern data processing, medical billing, and payment mechanisms that make information obvious for patients, people are more inclined to use the hospital’s services. Therefore, it has been shown that enhancing frictionless and instructional patient experiences can boost healthcare income.

Make sure all operations, from gathering insurance information to accepting payments, are straightforward and useful for patients.

In this case, implementing the right software is crucial. For instance, patient engagement software offers automated administration tools, patient education, patient support modules, and better communication channels that simplify hospital-patient interactions and cut down on paperwork. Patient-provider contact is facilitated through electronic health records (EHR), telemedicine, electronic prescriptions, and online scheduling applications.

3. Education and Training for Medical and Administrative Staff

The management of the hospital revenue cycle is complicated by the medical and administrative staff’s lack of knowledge and training. If even one employee fails to correctly fill out a patient’s information or charge them, the whole process collapses, and the odds of being paid quickly are decreased.

Healthcare organizations must thus educate their workforce about financial principles and try to integrate all staff members across departments. According to study, a lack of training commonly contributes to discrepancies in patient financial data across departments. The likelihood of inconsistent patient experiences and back-and-forth transmission of patient data will thus be reduced as a result of training.

Hospitals may train staff, for instance, by employing scripting, coaching, observation, and real-world situations to provide them the information, skills, and experience they need to handle financial challenges when interacting with patients.

Informing your personnel about the need for the changes and how they will improve routine hospital operations is important when adopting new software. In order to save time on learning how new features work, you should also teach staff members on how to use the systems.

In-depth training for medical and office workers increases employee loyalty, reduces attrition, and enhances patient care. Increasing staff retention is another way to optimize healthcare revenue cycle management.

4. Create objectives and track KPIs

We constantly ask billers, collectors, cash posters, and other back-office employees about their productivity objectives during revenue cycle reviews.

The fact is that workers who have objectives are more motivated to achieve them. Knowing the anticipated money, they will create is also advantageous to them. If expectations are unclear, billers may generate work at wildly different rates. Each day, one person could submit 200 claims while the other only submits 30.

Another important advantage is keeping updated financials. If your cash posters are posted a week late, you cannot conclude your month and you cannot communicate financial information to those who need it to make business decisions. To keep your cash posters up to date, you can determine if you have the proper amount of personnel by setting objectives and tracking your progress. You can also determine whether certain processes need to be changed or streamlined.

5. Simplify Point of Service (POS) Payment

Some of the front-end changes you may make to cut down on rejections and back-end rewrite were previously discussed. By planning eligibility checks, selecting the right payer, and giving correct insurance information, rework may be reduced. Error reduction may be aided by simplifying and streamlining processes, as well as by training staff members on the new methods.

Additionally, we suggest that you plan your POS data collecting. Collect copayments in advance of the service being given, or demand payment from the patient prior to their departure. Your ability to enhance your revenue cycle will be significantly impacted by this.

Also Read: How Can Hospitals Save Money During the Coronavirus Pandemic?