Simply put, Revenue Cycle Management allows hospitals and other medical establishments to ensure the timely collection of payment from individuals and insurance providers. In order for this to happen, RCM makes use of a number of tools in the form of software applications in order to retrieve and analyze data as well as check for eligibility for medicaid and other coverages.
Challenges of RCM
Of course, for a Revenue Cycle Management to be effective, it needs to have a few things in place.
The Revenue Cycle is similar to a supply chain in that if one of the “links” are not performing properly, the whole chain would not be as efficient as it should be. You have to keep in mind that encoding of incorrect or incomplete information can cause your claims and reimbursements to be declined completely.
Although you might have a good software in place to manage your data, if your staff do not know how to communicate with each other. Of course, doctors and hospital administrators need to make sure that they are able to properly communicate with their staff the importance of correct procedures.