16 May

Why Healthcare Revenue Cycle Management is Important

Today’s healthcare centers struggle with keeping operational costs down while providing high-quality patient care. It’s vital that Federally Qualified Health Centers (FQHC) and Community Healthcare Centers (CHC) receive payments from patients and insurance companies in a timely manner in order to keep profits up. To accomplish this, the revenue cycle – or the life of a patient account from the time their case is opened until final payment is received – must be managed effectively.

“The U.S. Department of Commerce reports that an account 60 days past due has only a 70% chance of recovery. After six months, it has only a 30% probability of being paid.”

For some healthcare centers, the responsibilities of Revenue Cycle Management (RCM) can become overwhelming and conflict with other office duties (managing employees, keeping up with government programs and other administrative tasks). Managing the revenue cycle includes compliance in ensuring complete and accurate billing processes and A/R follow up procedures are followed.

Revenue cycle management benefits include:

Healthcare Revenue Cycle Management

  • Increased average % of claims paid after 1st submission
  • Increased average % of current claims (0-60 Days)
  • Reduced denial rate
  • Improved net revenue to the practice
  • Higher percentage of clean claims
  • Reduced outstanding accounts receivables
  • Faster claims payment
  • Less lost claims
  • Improved quality of care by having more time for patient care issues
  • Correct patient information available and less stress to your staff

In order to achieve compliance healthcare providers must employ software technology and a centralized billing/coding system. Incorporating revenue cycle management processes as part of an overall business strategy often results in improved reimbursement, accurate billing compliance and great clinical outcomes.

Having a revenue cycle management partner can help healthcare clinics operate more efficiently, and in turn provide greater medical services to those who need it the most.

Download free ebook on RCM

 

CHC Revenue Cycle Management, FQHC Revenue Cycle Management

Written by Jonathan S. Gerber RN MBA

Is the Founder & CEO of The MEDCOR Group. He has over 35 years of experience in the healthcare arena ranging from hands-on clinical to executive level operations. Mr. Gerber has provided administrative support and advice to hospitals, MSO’s, medical groups, IPA’s, health plans and individual physician practices for more than 20 years. As the CEO of several healthcare related companies he improved operational efficiency and productivity, setting best practice benchmarks while meeting client needs. Mr. Gerber received his BSN from Arizona State University and MBA from USC.

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