Cash flow is one of the most important elements of running a successful business, but in the healthcare industry, cash flow becomes even more important. Without positive cash flow, medical practices are often unable to purchase new equipment that can be instrumental in delivering advanced healthcare, and to make matters worse, affected practitioners may also find themselves unable to attract or retain qualified medical professionals who can treat patients. All of this combined can lead to a reduction in patient satisfaction, a reduction in new patients, and ultimately, more cash flow woes.
How Revenue Cycle Management Can Help
One of the largest disruptors in cash flow for any medical facility is denial or delay in collecting on valid insurance claims. For a variety of reasons, claims can be denied or delayed, leaving healthcare providers in the lurch, all while patient care and satisfaction is still on the table and often negatively affected.
In a nutshell, managing your revenue cycle is the process of handling everything revenue related from the start. For example, determining a patient’s insurance eligibility for a particular visit or procedure from the time he or she arrives for an appointment is one of the first steps in the process, but handling denied claims is equally as important. Employing revenue cycle management software can streamline these processes, ensuring easier cash flow and a stronger bottom line.
The Healthcare Industry is Different
One thing to consider when thinking about revenue cycle management software solutions is how the healthcare industry differs from other industries. In healthcare, you may be working with patients who are facing long-term illnesses or recovery programs, meaning such patients will likely be long-term patients if your practice is able to deliver quality service.
However, many patients are short-term patients. A woman may come in because of a muscle pain that turns out to be dehydration or a parent may bring in a child due to a short-lived ear infection. While other industries, such as the grocery industry, may have a steady stream of revenue and consistency that results in extremely efficient processes. The medical industry doesn’t always have such a clear revenue picture. This can lead to inconsistencies in cash flow and break downs in processes.
How to Find Revenue Cycle Management Software
Are you looking for ways to improve your practice’s financial performance? It’s never too late to seek out solutions. PracticeSuite offers a variety of options to healthcare providers in order to reduce or eliminate denials and delays in claims, and the entirety of your practice can use the tools offered by PracticeSuite to qualify patients prior to a visit and collect on valid claims quickly after a patient visit. Sign up for a free version today.
Andrew Rusnak is an author who writes on medical practice development and business strategy.
Last Updated on January 8, 2017