Advanced Revenue Cycle Analytics: An Overview
Managing your revenue cycle is important to keep your practice running. However, keeping your revenue cycle healthy takes a lot of time and energy, and it can often conflict with the many office and clinical responsibilities. Why is revenue cycle management so important?
Defining Revenue Cycle Management
In order to know why revenue cycle management is important, first you have to clearly understand what it means. Revenue cycle management is the process through which a medical practice manages claims, processes payments, and generates revenue. It starts when a patient enters the door, and it ends when their charges have all been paid.
Why is Revenue Cycle Management important?
While your practice is centered around caring for patients, it is also a business. And like any business, you need continual cash flow to be successful. However, unlike most businesses, the way that cash flow enters is more complicated.
Depending on how accurately your practice enters claims, you may be leaving money on the table… potentially a lot of money. This is why it is so important to invest in high quality Revenue Cycle Management software.
How to improve Revenue Cycle Management
If your practice is struggling with Revenue Cycle Management, here are a few simple Revenue Cycle Management best practices:
- Ditch the paper superbill for an electronic one. If you haven’t already, now is the time to switch to an electronic system. Using paper slows you down, and it can increase the chance for human error. Whether it is through your EHR, or through a software like White Plume’s AccelaCAPTURE, using electronic charge capture is a best practice.
- Catch charge entry errors before your claims are filed. Denied claims are the biggest threat to your revenue cycle. Putting a system in place that catches coding errors before you submit claims will greatly reduce your denial rate. You can filter charges through a rules-based software like AccelaSMART. AccelaSMART is updated quarterly with the current industry codes, and it allows coders to only stop and review charges with errors.
- Use analytics to find opportunities for improvement. Revenue Cycle Management is an ongoing process. There is always room for improvement, but it can be hard to see where those opportunities exist. High level analytics can give you the vision you need to continually improve your revenue cycle, and increase cash flow for your practice.