Are you involved in the administration of a hospital? If you are, then you likely deal with revenue cycle difficulties on a daily basis. Whether it is Medicaid or Medicare reimbursements, private payer or health insurance, the revenue cycle for hospitals often presents unique challenges that many other entities do not face. Many times, even a highly skilled management team has trouble navigating the sea of trouble that is the medical revenue cycle. Fortunately, hospital administrators can take steps that will often help decrease the difficulty of revenue cycle management.
Many times the management team of a hospital is extremely busy handling the day to day operations of the hospital. The pressures of keeping a hospital running each day are in addition to meetings, planning and handling regulatory pressures. Often, all of these moving parts cause revenue cycle management to be overlooked. When the revenue cycle is overlooked it can cause significant trouble later. Fortunately, there are many revenue cycle software and consulting firms that specialize in helping hospitals manage their revenue cycle. These firms understand the revenue cycle management steps that need to be taken to improve collections, reimbursements and compliance. Experts in revenue cycle management, combined with a powerful revenue management system, can often take significant pressure off of the hospital management team and increase revenue retention.
Understanding Your Revenue
Many times the primary source of revenue will be different depending on the population the hospital serves. Some hospitals may derive their revenue primarily from Medicare or Medicaid, while others will have mostly private payers or insurance payments. The different types of revenue sources must be understood in detail by the hospital management team. Without knowledge of the various requirements, specifications and methodology of the different sources of revenue, a hospital can often find it is missing out on revenue.
With the help of experts and an increased understanding of the hospital’s revenue, a hospital can often improve its financial outlook. As the healthcare world grows in complexity, revenue cycle management will likely become more important than ever before.