Introduction
Your practice’s revenue cycle management is the process of collecting, tracking, and reporting on your payments from patients and payers. If you’re not collecting 100 percent of your revenue, it’s not only costing you money—it’s also hurting your reputation with patients who may decide to go elsewhere when they have a choice. Even worse, failing to collect all of the money due to your practice can result in penalties and potential legal action if one of your patients ends up having trouble paying for something.
Many practices make the mistake of assuming that if they collect patient-pay and insurance payments prior to a procedure, they will have no remaining receivables. But a successful practice must look at the following three key factors to implementing a successful revenue cycle management process:
To manage the revenue cycle more effectively, there are three key factors to keep in mind:
- Revenue management
- Eliminating A/R
- A/R management
Revenue Management
Revenue management is the process of managing the amount of money that a business receives from customers. it’s important that you know how a practice’s revenue management works and how it affects the patient’s access to care.
Eliminating A/R
A/R management is an important aspect of your practice that helps you collect your accounts receivable. Effective A/R management can significantly improve the cash flow in your practice.
While many practices focus their time and effort on bringing in new referrals, it is equally important to spend some time managing the accounts receivable process so that all of your hard work will be rewarded.
A/R management
A/R management is an important part of running a practice. If you are not collecting your revenue, then you will have problems paying your bills. The first thing that you need to do is understand why the A/R is not being collected. It could be because of any number of reasons such as:
- The patient does not have the money to pay
- Your invoices sent out are too complicated or confusing
- You haven’t been sending out reminders when they were due.
To address these problems and get those claims paid, there are some steps that you can take:
- Keep track of all unpaid claims so that they don’t get lost among other papers in your office – this will help prevent late payments from happening again.
- Be sure that anyone working on billing understands how important it is for them to send out claims about upcoming deadlines for payment before time runs out for collection purposes; otherwise, there won’t be anything left in their accounts at all! Remember also never let any items go past 180 days without sending out reminders–this usually results in more debt collectors coming after us later down the road which costs more money than simply doing things correctly upfront.”
The best way to ensure you are collecting every cent of your revenue is by using an efficient and effective revenue cycle management solution.
When it comes to revenue cycle management, there’s no such thing as “good enough.” The best way to ensure you are collecting every cent of your revenue is by using an efficient and effective revenue cycle management solution.
A good quality revenue cycle management system will help you:
- Automate processes in order to house more patients and increase revenues
- Reduce expenses and increase patient satisfaction through better communications between the front desk, doctor offices, and back office staff
- Improve productivity by streamlining workflows across multiple locations
Conclusion
The key to successful revenue cycle management is understanding the three factors of revenue management, eliminating accounts receivable, and A/R management. These are all critical processes that must be in place in order for any practice or business to maximize the potential of its collections and stay profitable.
