The Essence Of Employing Revenue Cycle Companies
Revenue cycle management is what you call to the process of managing claims processing, revenue generation and payment and there are lots of revenue cycle companies offering this service. In their service, it includes everything from collecting co-pay, determining the eligibility of patients, coding the claims, collecting payments, tracking claims and even doing follow ups on denied claims. Revenue cycle procedure should be efficiently managed as it is an integral part of any office functions.
Financial pressures do increase on healthcare organizations in the upcoming days due to the reason that the focus is gradually shifting towards changes in reimbursement methodologies, increasing transparency and containing healthcare costs. It showed that revenue cycle companies have almost rejected 26 percent of all the claims submitted according to research and surveys. 40 percent of the rejected claims are then submitted to CMS. As a result, this leads to the lost revenues for various healthcare organizations. Irrespective of how popular and good an organization is, constantly losing revenue will probably make a huge impact on their survivability.
On the other hand, by working with experienced revenue cycle companies, you can rest assure that they place appropriate RCM procedures which allows an organization to improve their bottom line while reducing their write-offs. A few of the common issues faced by organizations in their RCM are poor communication between workers, untrained staff and incorrect workflow which can be corrected in-house easily.
On the other hand, for other organizations the responsibilities and duties of revenue cycle management may be overwhelming. Well good news is that, there are countless of revenue cycle companies that can handle the responsibility and duty of managing the revenue cycle of your organization.
It is essential to have thorough understanding of revenue cycle market and broad knowledge as well to be able to find the right revenue cycle management firm. Believe it or not, at 2014, revenue cycle market was valued at almost 18.3 billion dollars but by the end of 2019, it is expected to grow by 32.2 billion. In other words, you can expect to see better companies and products to meet your needs for revenue cycle management.
Following are few indicators that you should know and understand to properly make the most of this growth and these are building strategy to be focused on consumers, pharmacies become margin generators and key revenue, work towards eliminating the cost of collecting bills of patients, building a strategic partnership with RCM providers in order to reduce cost of operation and also, to cope up with tricky reimbursement rates and many more. As you learn about this, you can be certain to find good revenue cycle companies to be hired.