The traditional RCM (Revenue Cycle Management) is affected by different approaches due to the healthcare industry’s transformation from fee-for-service to value-based care payment. Healthcare organizations and individual veteran practitioners must be financially stable or robust to provide their services continuously. This is when the best healthcare RCM service enters the picture.
The financial process known as revenue cycle management (RCM) in the healthcare industry makes it possible to regulate intricate administrative procedures and clinical duties such as patient eligibility, claims processing, payment, denied claim management, and revenue creation.
RCM serves as the backbone of healthcare companies, assisting them in various tasks, including bill payment, resource management, and more. In the medical billing industry, more than 25% of claims are denied, and up to 40% of those claims are never resubmitted, which results in significant income loss for healthcare institutions.
On the plus side, the healthcare sector can profit most from proper RCM while incurring the fewest write-offs for bad debts. It would help if you first fully comprehend the fundamentals of the medical billing process to fully comprehend the phenomenon known as healthcare revenue cycle management.
RCM Healthcare Foundations:
It begins when a patient makes an appointment to receive any medical aid and ends when the medical organizations receive their fees.
Initial administrative tasks handled by the health group include scheduling, determining insurance coverage, and setting up patient accounts.
Following the patient’s treatment, the claims submission process starts. An expert coder uses the correct ICD-10 codes to submit the claims; these codes specify the amount of payment, and codes that have been authorized stop claims from being denied.
The crucial phase of private or public payer for payment follows. They assess the claim values, confirm the information, such as insurance coverage, contracts, etc., and then handle the reimbursement procedure.
Most claims are rejected because of incorrect coding, unfinished patient accounts, mistakes in medical charts, etc.
The final revenue cycle management result is reached, which is maximum claims reimbursement. RCM aids healthcare businesses in receiving the greatest claims reimbursement on schedule and with the fewest rejections.
Then, healthcare organizations or individual veterans carry out the AR. Follow-up in which they manually or automatically create healthcare claims and mail them to various insurance companies.
The healthcare software development include medical billing management software that records each patient’s payment with accurate information, such as the patient’s name, account number, denial information, service dates, etc., in the last stage, known as Payment Posting, for future reference.
It can assist healthcare businesses in tracking their exact financial growth performance. Using an appropriate RCM procedure, they may quickly calculate the claims approval and denial rates. The healthcare organizations controlled their medical billing process well and rapidly resolved claim denial difficulties thanks to a flawless RCM process.
Here are a few major advantages of efficient RCM:
- Fewer claims rejected
- Enhanced medical care
- Increasing Reimbursements
- Impeccable administrative records, that is, no more fines or costs
- Quicker processing of claims payments.
How the Healthcare Revenue Cycle Works
There are numerous steps in the revenue cycle for healthcare. This indicates that there are several potentials for mistakes to happen. Any faults in the revenue cycle can stall or delay the provider’s ability to get paid by patients and insurers.
Let’s look at the processes in the healthcare revenue cycle to get a better idea of where errors can happen and how RCM can prevent them:
- Pre-authorization and eligibility confirmation:
The healthcare provider gathers data to create a patient account when a patient schedules an appointment. This involves gathering the patient’s insurance details and confirming their eligibility for coverage.
Even if a patient already has an account with the provider, revenue cycle management strongly emphasizes accurately completing this phase. A claim denial later in the revenue cycle will only result from inaccurate information or ineligible insurance. This indicates a delay in the reimbursement payment to the provider. Additionally, it adds to the provider’s workload because they must review the patient’s records again to fix the mistakes.
- Charge Capture and Coding:
Using generally recognized medical codes, charge capturing converts patient services into chargeable charges. Insurance companies use these codes to calculate reimbursement amounts.
The insurance provider could reject the patient’s claim if the medical records are not properly coded. As a result, provider reimbursement is delayed. Additionally, it costs the provider time and money because appeals and investigations are required for refused claims. Coding correctness is ensured by effective revenue cycle management, allowing denials to be completely avoided.
- Submission of Claims:
Following accurate coding of a patient’s treatment, a claim is submitted to the insurance provider for approval. RCM manages and tracks the claim from the outset of the process to ensure that it is submitted as soon as possible.
- Payment Collection:
After the insurance company has granted the patient’s claim, the provider is paid according to the patient’s eligibility. The provider must contact the patient to obtain any unpaid balance, if there is any, after the insurance company has paid its share.
Revenue cycle management streamlines claims processing to hasten this patient payment process. Additionally, patients will be aware of their first out-of-pocket costs thanks to the greater emphasis RCM places on front-end duties like confirming insurance eligibility. Once more, doing so helps to prevent any hiccups with collecting the last payment.
Review of medical services Care providers is encouraged to assess clinical care software data by comprehensive revenue cycle management. By analyzing this data, providers can determine the points in the cycle where mistakes are occurring and find opportunities to reduce costs. As a result, this will boost provider income and enhance the patient experience.