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A revenue cycle is defined as all administrative and clinical functions that contribute to the capture, collection and management of patient service revenue. In essence, the revenue cycle encompasses the entire life of a patient account from creation to payment. Revenue cycle management is an important for a functioning healthcare practice. With the proper processes and workflows in place, you can prevent bad debt write-offs and increase payments within the 30 days payment terms. In order to optimize your revenue cycle, you will need to follow our top 6 tips below.
Educate Patients
One major hitch in the revenue cycle for many healthcare practices is missed payments by patients. This is why it is important to educate and provide counseling to patients in need. If you notice that some may have more difficulty keeping up with payments, consider providing them with new tools or plans that can assist them. Education can be an excellent preventive measure against debt.
Identify The Odds Of Payment
You should be able to identify the probability of patient payments. This is just as important as it is to understand the small business financing process. Understanding which clients are unlikely to pay their medical bills on time will help you to improve your revenue cycle management processes. Identifying the clients who may need a bit of guidance allows you the opportunity to provide financial counseling. That makes these patients much more likely to pay on time in the future. Obviously, this will do wonders for your revenue cycle.
Train Front-Desk Staff
A well trained staff is the key to a successful revenue cycle. Oftentimes the staff is even more important to business than the business owners themselves. The best and cheapest way to collect co-payments is when the patient is in your office. Moreover, your trained staff members can take advantage of this opportunity and encourage immediate payment. Additionally, a well trained staff helps to maintain open communication throughout the office which can help to improve overall productivity.
Collect Revenue Analytics
Analytics are an excellent tool for healthcare practices that want to optimize their revenue cycle. Collecting information and statistics regarding your current cycle and process can help you to locate areas that are most in need of improvement. For example, analytics can tell you if a particular patient is struggling to pay on time and requires bill consolidation. Then, you can address the issue and offer help so that the revenue cycle gets back on track.
Modernize The Process
The next tip is to modernize your process. Machines and software can be immensely helpful to financial situations. Not only do they provide fast and efficient service, but they also help to eliminate human error. To improve, online bill pay helps to make payments flexible for your patients who may struggle with finance vs accounting. If you want to improve your revenue cycle management, technology is the best option.
Establish A Financial Policy
Establishing a proper financial policy can be the key to successful collection. If you do not already have one set up, this is a tip you should definitely consider. A policy that outlines the expectations and responsibilities of both your practice and the patient can be a great way to improve the payment process. When everyone has a clear understanding of their expectations, you will all feel much more comfortable going forward.
Use Eligibility Solutions
Finally, the last tip for you to improve your revenue cycle is to utilize eligibility solutions. Determining whether or not a patient is eligible for care under their insurance can be a hassle. Thankfully, there are plenty of software programs that can help determine eligibility, just as there is also helpful collaboration software available for all types of business. This leaves more time for your staff to complete other work, and it also reduces the chance of human error.
Improving the revenue cycle for your healthcare organization is important. In order to succeed, you will need to follow these six tips above. By modernizing your process, utilizing analytics and providing adequate patient education and counseling, you can optimize your payment process.
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