Health care organizations are dealing with the economic crisis by improving internal processes and preserving cash flow. While hospitals have historically had a poor track record of collecting from third-party payers, they still hold significant leverage over those entities when passing along increases in costs for services rendered or supplies used. Revenue Cycle Management (RCM) is an approach that focuses on improving revenue generation through better collections management, cost containment, and operational efficiency. Through RCM’s analysis of clinical data, step-specific financial processes can be identified within the cycle allowing for more effective planning and strategies regarding revenue.
To understand the revenue cycle and its various steps, it is essential to first look at the actual collection process. The initial focus of RCM is on defining a structured approach for managing those activities through analysis of critical areas within the hospital’s financial reporting and collection systems. This helps identify how much leverage hospitals have over their payers and third-party administrators and identify key drivers that can minimize non-revenue generating activities while maximizing profit margins. The goal of healthcare revenue cycle software is to accurately predict cash flow from operations, allowing companies to manage their liquidity more effectively with less reliance on asset-based financing or equity financing through public markets or private funding sources (like venture capital firms).
Revenue cycle management is a focus on improving revenue and cash flow for hospitals and healthcare transactions. Revenue Cycle Management works to improve efficiency in collecting money from patients, insurers, and other third-party payers. It focuses on driving up collections while minimizing costs through better operational efficiencies. The approach also includes better managing the patient volume with utilization review programs that help determine whether or not a procedure or test will be covered by insurance. Learn more about RCM and the benefits of your practice. AZZLY offers software services for a wide range of healthcare facilities. Contact www.azzly.com today.