Hospitals and different health care institutions rely on a steady influx of revenue to ensure that they stay in business and function more effectively to serve the public. To make sure that they are able to meet the daily requirements of expenses to stay in operation, medical institutions and offices establish proper revenue cycle management into their business approach. You may ask, “What is revenue cycle management?”
Revenue cycle management is the process of taking the appropriate steps to guarantee timely payment for medical assistance. The revenue cycle begins when a patient first calls into a doctor’s office for an appointment, or visits a hospital and provides the staff with his name, phone number, and the name of his insurance company. The cycle ends when the balance on that patient’s account is completely cleared.
To properly keep track of the entire process, technology is employed to automate the process, which largely involves cataloging patients’ data and managing their file throughout, so that healthcare providers can follow through the progress of each patient and address any issues that may arise.
Revenue cycle management facilitates other patient-related financial activities, as well. Using the automated process, healthcare providers can quickly check a patient’s insurance eligibility before admission. With quick and easy access to a patient’s file, medical institutions also gain the ability to counsel patients on the spot about high-cost procedures and how some of the treatment approaches may impact their finances.