I’m working on a health & medical discussion question and need support to help me understand better.
Please write a discussion and respond to this 2 peers’ Discussion Prompts
- Why is revenue cycle management critical to the financial performance of health care providers?
- Provide an example of how health care providers evaluate revenue cycle management performance.
- Respond to at least two (2) of your classmates’ or your instructor’s posts. Your responses should include elements such as follow-up questions, a further exploration of topics from the initial post, or requests for further clarification or explanation on some points made.
- ALL citations and references needs to be APA 7th edition format. THANK YOU!
Revenue cycle is a multidisciplinary approach to reducing the amount of account receivable, or money due to the organization, by effectively managing the production and payment cycles (Nowicki, 2015). Healthcare revenue cycle management, RCM, is the process of managing the entire revenue cycle of the healthcare providers and making sure that there is little to no delay due to redundant tasks and revenue collection leaks (Wilson, 2020). According to Nowicki (2015), the objective is to reduce the collection period, or the time between the service and the payment. One study found that healthcare organizations are losing up to $125 billion due to unpaid or underpaid claims (Wilson, 2020). One of the most significant benefits to effective RCM that healthcare providers will feel is enhanced revenue performance (Abeo, 2020). Properly managing the revenue cycle will decrease the number of errors, increase the likelihood of payment, and avoid aging accounts receivable (Abeo, 2020). The healthcare provider will see money faster and more consistently.
One way that healthcare providers can evaluate the performance of revenue cycle management is through the tracking of reimbursement turnaround time. By tracking this data, healthcare providers can take steps to rectify inefficiencies while improving communication with insurance companies that are typically slow to pay (QueueLogix, 2019). If the healthcare provider is properly filling claims, then the turnaround time for reimbursement will be relatively quick. But if claims are being filed inaccurately, then the turnaround time will be delayed.
The revenue cycle is critical to healthcare providers’ financial performance because there is a need for revenue cycle leaders to identify ways to increase cash flow. Due to the expense increase in health insurance, families are spending 11 percent of their income on healthcare, with about a quarter of it on high deductibles, co-pays, and other out-of-pocket health costs delivery of quality finance and clinical care is a must. Hospitals with better patient reviews had higher profitability.
How healthcare providers evaluate, revenue cycle management performance is by using the power of technology to modernize revenue cycle management is key to improving the patient experience. Healthcare consumers enjoy the luxury of digital financial experiencing, managing medical bills online, access clinical and financial information via patient portals, and receive communications through email or text (Zotec, 2019). There is a demand for a provider to meet the consumer’s need for revenue cycle technology to improve patient satisfaction.
Requirements: 300 words