To succeed in the healthcare industry, organizations must maintain an accurate healthcare revenue cycle along with the patient care. Common healthcare revenue cycle management mistakes, such as incomplete documentation, downcoding and patient insurance verification issues can lead to significant revenue challenges. A well-functioning RCM ensures optimal financial performance and patient satisfaction.
In this blog, we will focus on the top RCM mistakes and effective strategies to overcome them.
What is Healthcare RCM and why is it Necessary?
Healthcare Revenue Cycle Management (RCM) plays a crucial role in medical services, handling the financial aspects of patient treatment from appointment scheduling to billing settlement. RCM is essential for maintaining physicians’ financial stability and ensuring the delivery of quality patient care. In simpler terms, it serves as a tool for managing financial matters effectively in healthcare organizations.
7 Revenue Cycle Management Mistakes
Following are some important mistakes that can damage your practice revenue cycle. These are
- Incomplete Procedure Documentation
- Problems with Patient Insurance Eligibility
- Billing and Coding Errors
- Not Collecting at Point of Service
- Irregular Claim submission
- Un-Optimised Workflow and time
- Patient Payment Issues
Incomplete Procedure Documentation
Incomplete documentation means that the medical biller has failed to record all the essential patient data. It creates gaps in the understanding of the patient’s complete medical background for healthcare providers. In addition to this, accurate and concise documentation is crucial for proper billing and timely reimbursement. Incomplete documentation could result in late payments or even rejected claims.
Problems with Patient Insurance Eligibility
The problems with patient eligibility for insurance are also of great importance. It affects the financial aspects of health care delivery. Claim denials, late payments, and additional administrative costs are some common results. Patients face unexpected out-of-pocket expenses.
Billing and Coding Errors
Billing and coding mistakes in the healthcare industry often result in delayed payments. Claim denial or rejection is common. Whereas, Inaccurate interpretations of billing codes for medical treatments lead to significant financial instability.
To address this, constant staff training and quality control mechanisms are necessary. By correcting these mistakes, healthcare companies can have a smoother operating revenue cycle.
Not Collecting at Point of Service
Not receiving payments at point of service is a challenge for healthcare providers. This can lead to unpaid bills. Outstanding balances occur when payments are not collected at appointment times. The adoption of a transparent and efficient payment collection service is a solution.
Not Submitting Daily Claims
The delay in submitting the claims can affect the reimbursement process. By ensuring that claims are submitted daily, providers can also ensure the continuity of the payment cycles. Thus, reduces any possible delays.
Not Optimizing Time and Workflow
Inefficient time management and ineffective workflow processes is a real hindrances in the smooth functioning of the healthcare revenue cycle. Not prioritizing time and workflow can cause delays in the billing process.
Patient Payment Issues
Patient payment challenges, including late or missed payments, create problems for healthcare providers. When patients are unable to meet their financial liabilities, it affects the revenue stream of healthcare facilities.
Do You Know?
As per SNS Insider Research, the revenue cycle management market was valued at US$262.60 billion in 2019. Is likely to grow at a CAGR of 8% from a forecast period and reach $5584 billion by the year 2030.
How to Avoid Healthcare RCM Mistakes
In order to enhance revenue cycle management (RCM) and address the issues discussed above, implement the following strategies:
Invest in Staff Training
In order to achieve success in healthcare RCM, focus on employee training. Work with high-tech technologies and check the patient’s insurance at an initial stage. Provide clear POS payments. Submit claims on a daily basis for quick reimbursements. Internal audits, patient education on their financial obligations, and payment plan facilities.
Optimize the processes, change the coding practices, and measure the key performance indicators. Moreover, Work in partnership with the RCM experts for useful clarification. Develop the continuity of financial security and patient care.
Verify Insurance Eligibility
It is necessary to verify the patient’s insurance validity before the administration of medical care. Verification ensures that healthcare providers do not face any issues in the future.
Providers can avoid problems by ensuring that the patients are actively covered and also the payment process does not hinder them. It is like verifying once again that everything has been set up and ready to go before proceeding. Thus, it enhances the entire healthcare process for both the patient and the provider.
Transparent Point-of-Service Collection
Having a transparent point-of-service collection is equally important approach win payment collection because transparency facilitates healthcare facilities by ensuring that patients know their financial responsibilities beforehand.
This procedure helps to avoid confusion and prevent the occurrence of residual balances. It also ensures a convenient financial cycle for hospitals, clinics, and patients.
Daily Claim Submission
Developing a daily claim submission routine is an important practice in healthcare administration. This involves making daily claims to insurance companies rather than waiting for weeks. However, this routine brings value to ensuring consistency and continuity in the reimbursement process.
Each day, claims are made by providers to enhance the analytics revenue cycle. Therefore, paving the way for delays in payment and ensuring steady financial service. This process does not only shorten the reimbursement period, but also contributes to improving all other aspects of financial management. Furthermore, It ultimately affects a health care organization’s finances positively.
Conduct an Internal Audit
Conducting internal audits is an imperative practice that ensures accuracy and improvement. The internal audit also characterized by a process-oriented review of different procedures. This includes documentation, billing, and coding in the health care setup. Moreover, the preventive measure enables billers to detect errors and inconsistencies at an initial stage.
Internal auditing also helps healthcare organizations maintain the integrity of their operations. It also help the organization to become compliant with industry standards, and consistently improve processes.
Enhance Data Security Measures
Lastly, the importance of data security in healthcare cannot be overemphasized. It is like a lock-up of vital information to ensure patients’ privacy which is also important. Providers need to take additional steps to protect the data of their patients and preserve confidentiality. In addition to this, It also promotes trust between patients and doctors. Thus, creates a safe haven for confidential information.
How Medheave can Help Providers for Managing Medical RCM Services?
Medheave- Medical Billing Company provides a wide range of RCM services to healthcare providers. The company allows the physicians to improve their operations and avoid common Revenue Cycle Management Mistakes. Medheave also facilitates the eligibility verification of insurance coverage. It prevents issues related to patient insurability and claim denial. In addition, Medheave also helps to reduce billing and coding errors. This is possible with its user-friendly interface and very advanced incorporation technologies. Sign up today for an error-free RCM service.