The revenue cycle is the process by which a healthcare organization receives and bills for services rendered to patients. It is an important part of data management and revenue evaluation for effective patient record management leading to organizational excellence. This guide provides a step-by-step breakdown of the revenue cycle, which includes 7 major steps.

What Is Revenue Cycle Management?

The revenue cycle is the process by which a healthcare organization tracks and bills patients for services rendered. It includes 7 major steps, each of which is summarized in this guide. 

Revenue cycle management is an essential part of an organization's success. It provides a stable financial foundation that can be used to build upon and reinvest into the healthcare system for further innovation.

Importance Of Revenue Cycle Management

One of the most important aspects of revenue cycle management is its ability to help organizations make decisions about where they need to improve. By comparing their own revenue cycle with that of their competitors, organizations can get a better understanding of where they stand in terms of efficiency and effectiveness. This information can help them make strategic decisions about where to invest their time and resources in order to improve their overall revenue cycle.

It's important to note that as new technologies and revenue cycle management methods emerge, the entire process of optimizing patient record management is always changing. Successful organizations need to be sure they are continually up to date on the latest developments and strategies.

Steps Included In Revenue Cycle Management

Below we will take a closer look at the 7 major steps included in revenue cycle management.

Pre-Registration 

Pre-registration allows the medical practice to capture information, insurance information, and eligibility in real-time, often while the patient is still on the phone. This helps to ensure a smooth registration process when the patient arrives at the office. It also allows the medical practice to begin billing for services as soon as they are rendered.

Registration

Registration is the process of ensuring the patient’s information is accurate. The provider makes sure the patient’s address, phone number, date of birth, guarantors, and insurance information are correct. This ensures that when the patient arrives at the office, they can be quickly and easily registered.

Charge Capture

Charge capture is the process of recording the services rendered to the patient. This information is then used to generate invoices and bills for the services rendered. It's important to note that this process should be completed as soon as possible after the services are rendered, in order to ensure timely billing and collection of payments.

This measure is important as it makes sure that hospitals receive full compensation from their payers.  In recent years, the rise in healthcare fraud has led to a heightened awareness of this issue among healthcare professionals. If services are not properly captured for billing, it means that they will not be appropriately covered by the payer. been treated at the

Coverage

When a patient requests medical therapy, their health insurance company will examine the request to make sure that it is medically necessary. If the therapy is not considered necessary, the insurance company may not cover the cost of the treatment.

The utilization review is a process by which the health insurance company examines a patient's request for medical services to determine if they are covered under the plan. This process helps to ensure that patients receive the essential medical services that they need.

Claim Submission 

Medical insurance claim submission is one of the crucial steps in medical billing. This is the process by which healthcare providers submit bills to insurance companies for services rendered to patients. If the bills are not submitted properly, it can lead to delays in payment and increased hassle for both the provider and the insurance company.

That's why it's important to make sure that all of the information on the bill is accurate and complete. This includes the patient's name, address, date of birth, and insurance information. It's also important to make sure that all of the services that were provided are listed on the bill. This will help to ensure that there are no delays in payment.

The hospital will submit the claims to the insurance companies so that the payment may be transferred as per the details of the contract. The hospital will work with the insurance company to ensure that all of the necessary information is included in the claim. This will help to ensure that there are no delays in payment.

Medical Coding

Coding is used to translate the written descriptions of services, processes, and items into alphanumeric or numeric codes. Medical billers use codes to come up with insurance bills and claims. This information is then sent to the insurance company so that they can process the payment. By using accurate codes, medical billers can ensure that the insurance company has all of the information they need to pay the bill.

Payments

With integrated billing solutions, patients can view and pay their bills right in their patient portal. This makes it easy for them to stay on top of their payments and helps to ensure that they don't miss any deadlines.

Payments are the final step in the medical billing process. By collecting payment from patients before services are rendered, healthcare providers can ensure that their offices have the funding they need to continue running smoothly and providing high-quality care.

Reasons To Adopt Revenue Cycle Management

Revenue cycle management is a comprehensive set of solutions that helps healthcare organizations to manage their revenue and cash flow. By adopting this system, healthcare providers can ensure that they are getting paid for the services that they provide.

Overall, revenue cycle management is a better solution than the traditional methods of billing and collecting payments from patients. It provides a more efficient way to manage revenue and cash flow, which helps to improve the financial stability of the organization.

Below are some of the top reasons that healthcare providers around the world are adopting revenue cycle management solutions:

Improved Experience

By adopting a revenue cycle management system, healthcare providers can improve the overall experience for both themselves and their patients. This streamlined system eliminates unneeded processes and simplifies the complexities of billing and collecting payments. This makes it easier for everyone involved in the process to get what they need efficiently and without confusion.

Fewer Denials

One of the benefits of optimizing the revenue cycle is that it helps to reduce the number of denied claims. When the system is running smoothly, it eliminates the chances for human error. This means that fewer bills will be rejected by the insurance company, which will help to improve the cash flow of the healthcare organization.

Simplified Process

The revenue cycle management system helps to improve the scheduling process by providing a more efficient way to book appointments. It also helps to improve coding by providing accurate codes for the services that were provided. The billing process is streamlined, which makes it easier for the hospital to get paid. And finally, the payment processing is faster and more efficient.

Removing the complexities in the workflow is a must to improve operational efficiency and to make sure that they are meeting their revenue targets. The fewer processes that are involved in the billing and collection process, the less chance there is for human error. This streamlined system will make it easier for everyone involved in the process to get what they need.

Maximizing Revenues

The revenue cycle management system helps to improve the collection process by providing a more efficient way to make payments. It also simplifies coding, which ensures that claims will not be rejected due to human error. The billing is streamlined and makes it easier for hospitals or clinics to collect payment from patients before services are rendered. Lastly, the processing of payments is faster enabling organizations better meet their financial targets. 

Handling the incumbent tasks along with backlogs such as payment denials and follow-ups, and making sure that the services providers are timely reimbursed.

Optimized Workflow 

Healthcare providers can optimize their workflow by streamlining the scheduling process, ensuring accurate coding of services provided, and improving billing practices to make sure that claims are processed quickly. 

The workflow is one of the biggest benefits that an organization can experience when they adopt a revenue cycle management system. The healthcare organization's employees will be able to focus on more important tasks instead of worrying about billing and collections.

Being proactive is crucial for increased efficiency and top-line growth, which is exactly what a robust RCM solution offers. Having visibility into the revenue cycle management system will help to reduce the time it takes for claims to be paid. With a solution that is customized specifically for healthcare providers, organizations are able to meet their financial targets by being more efficient with how they manage payments.

Timely Collection Process 

The automation and accuracy of the revenue cycle help in faster collections. Providers prepare their bills in less time, and time submission improves the collection process. The use of a revenue cycle management system allows providers to focus on more important tasks instead of wasting time on administrative tasks. The streamlined process helps to improve the overall efficiency of the revenue cycle.

Conclusion

Your revenue cycle management (RCM) system is the backbone of your hospital or medical practice. The RCM process consists of 8 steps that are meant to answer questions like "How can I improve my cash flow?", "What's happening with all our patients?" and "What treatments should be given next?". If you're looking for a reliable, proven solution that will help reduce financial stress on your staff, keep customers happy and provide an easy-to-follow audit trail for regulators, email us at sales@enter.health!