A revenue cycle refers to the activities involved in the sale and delivery of goods and services to the customer. From the endorsement of goods and services to managing transactions, revenue cycles are basically the core of doing business. Every industry, including healthcare, has its own revenue cycle.
The cyclical process ensures continuous revenue for the medical facility over the course of the patient's life. However, the risk of a domino effect affecting the entire process is higher, which is why medical facilities must take extra care when processing transactions. A minor error at any point in the process can cause a chain reaction, affecting revenue and customer satisfaction.
Technology opens a new world of possibilities in improving the revenue cycle, although it's still important to keep in mind that technology is only as good as the human input. By using state-of-the-art software and revenue cycle solutions, medical facilities can streamline the revenue cycle with a lower risk of creating issues and concerns for the customer.
These systems will become essential as medical billing makes the shift to the newer ICD-10 standard. It will implement more billing codes than its predecessor the ICD-9, and this change will surely create more confusion for a medical facility without a revenue cycle management system.