Revenue cycle management (RCM) may seem big and scary at first, but knowledge is power. Knowing how to optimize your revenue cycle management should lighten the load that may seem to be on your shoulders. In the healthcare industry, improving your revenue cycle management is top of mind. This is why we’ve gathered 3 hidden facts about RCM that may help you transform it.
1. Follow-up systems are underrated and incredibly important.
Many healthcare practices don’t follow up regarding accounts receivables due until the 90-day mark. However, this may be the reason that you’re missing out on a good chunk of your revenue. Any claims that age past 90 days are negatively impacting your cash flow and should be attended to far earlier. We recommend working your accounts receivables starting 30 days after the claim is opened. Have a follow-up system that shows you which accounts are at least 30 days due and start to work those accounts. You may be surprised by the increase in return that follows.
2. Your net collection percentage needs to remain high or your efficiency should be addressed.
A dip in your net collection percentage is likely due to a lack of efficiency on your part. If your net collection percentage is lagging or below average, you need to investigate and potentially upgrade and improve your healthcare collections technology and invest in additional training for your employees. Alternatively, you may need to hire a healthcare collections agency that has expertise in collecting from healthcare providers’ patients and maximizing recovery. All of these things can reduce errors from inaccurate filing, slow manual processes, and more.
3. Make sure that your patients know your financial policy from the get-go.
This is an overlooked important aspect of revenue cycle management! Having a sound financial policy not only will help you improve your revenue cycle management by codifying all the processes that your organization goes through to bill patients and then go about collecting, but it also will ensure that your patients won’t be able to claim that they didn’t know what your policies were in court. Having your expectations clear for both your patients and your staff will ensure that everyone is on the same page when communicating costs.
Need to improve your RCM but don’t have the time or resources to dedicate a section of your staff to it? Hire a healthcare collections agency to help you do all the work while retaining your patient-provider relationships. Frost-Arnett has over 125 years of experience in the industry. Our representatives are trained to speak with empathy, compassion, and care to your patients. Give us a call at (615) 259-6271 for more information!