10 Benefits of Using a Revenue Cycle Management Tool for your Healthcare Practice
In today’s age, medical practices are facing a huge economic challenge. Third-party payers’ reimbursements has flat lined while self-pay is continuing to soar. In this situation, efficacious revenue cycle management has become more important than ever. A hospital that effectively manages its billing and collection operations can boost its profitability, even in the current payment environment. But over the years, medical billing and collection has become exceedingly complicated and labor intensive. To overcome this challenge, leading medical groups are employing and leveraging a new generation of advanced Revenue Cycle Management tools that help to correct the balance of power between payers and providers, transform revenue cycle operations and improve financial performance.
What are the benefits of using a revenue cycle management tool?
1) Automates billing, so it is error free
- The latest revenue cycle technologies leverage the power of connectivity to take automation to the next level.
- The most challenging part of revenue management is revenue cycle-coding errors, eligibility, denials management, and self-pay collections. If a bill is charged correctly, it doesn’t get denied the first time, so it accelerates cash flow forward and decreases the amount of work on the back end.
- With the right kind of automation to accomplish that, you increase efficiency and you decrease the chance of the claim getting lost in the AR.
2) Denial Management
- If the practice management system is natively integrated with a clearinghouse, the operator receives denials’ information even before Electronic Remittance Advice is posted, so that they can be addressed immediately.
- It will automatically reconcile ERAs with claims and post the payments. This not only reduces errors, but also eliminates the need for some billing positions.
3) Reduces patient debts
- Employing a payment assurance system, hospitals can take the patient’s credit card and obtain an authorization for the estimated patient liability.
- The balance therefore is automatically charged to the credit card after the insurance company has adjudicated their claim.
- This ensures on time payments and also reduces overall cycle time.
4) Ability to dive deep into data for better understanding
- An advanced system helps dive deep into the data and help managers understand why certain kinds of claims have been denied, and why claims get held up when they’re being prepared and validated.
- Higher-functioning systems even permit users to customize the reports. Equipped with such a system, managers can find any piece of data they want, or generate a report with specified parameters or even compare denials by payer over time.
5) Helps Benchmark
- A Native integration between the clearinghouse and practice management system can augment the power of remittance data mining and analytics.
- An advanced benchmarking system provides insight into a practice’s overall revenue cycle performance and allows a medical group to compare its performance with that of similar practices.
6) Bottle necks can be easily dealt with
- A manager gains the ability to spot bottlenecks in the revenue cycle immediately after they occur by putting the right metrics in the analytics application.
- This way he can address the issues by changing the parameters of the work queues in the practice management system.
7) Easier to fix things
- Employing an advanced revenue cycle management system makes it much easier to access and measure.
- Using business intelligence tools can help managers detect the issues they have to fix and by repeating this process as a standard operating procedure, managers can be confidently keep up with the rapidly changing requirements of revenue cycle management.
8) When performed correctly, Revenue Cycle Management tool optimizes the productivity of a practice’s most important and expensive asset, and that is its staff
- Organizations can create streamlined workflows that help to shift the staff’s time and focus from routine to exceptions that require their attention.
- As a result, they are more productive and get better results.
9) By employing revenue cycle management tool, health care practices can be rest assured of getting optimal return on investment. This motivates them to better their services and invest more into giving the best in healthcare.
10) Delivery of healthcare must be patient-centric yet business-oriented. Optimum revenue cycle management tools help to achieve just that.
With so many benefits from the usage of a single tool, there is no excuse to avoid such amazing technology today.
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