Whether you run an expansive hospital or a small independent clinic, Revenue Cycle management services remain the same – complex and challenging. It takes experts to set forth RCM processes right and handle them as situations and industry demands keep changing.
In 2023, experts in the Revenue Cycle Management service industry talk about four main challenges that service providers must be aware of and tackle to be successful in what they do.
- Finding a balance between increased budgets and technology needs
Technology plays a vital role in increasing the efficiency of RCM services. However, it is also true that making such investments is going to increase the budget needs of these Revenue Cycle Management service providers drastically.
Finding the balance between increased financial and technological requirements is a huge challenge that service providers ought to face and beat this year. These service providers may have to choose the right technology to invest in and understand the impact of this on their budget planning carefully.
Control A/R cycle
The accounts receivable cycle is a measure of how long it takes for a captured charge to be paid or reimbursed. Usually, the industry’s average A/R cycle is 30-70 days. The narrower the cycle is, the better it is for the financial stability of the service provider.
Revenue Cycle Management services need to work extra hard this year because the average A/R cycle has increased in the last two years. While all this started with the pandemic situation, industry experts are trying hard to curtail the figures.
Sometimes, there may be a need to tweak every single step of RCM to reduce the accounts receivable cycle successfully.
Training and development needs
This year, Revenue Cycle Management service providers may have to spend more on training and development needs internally. With newer technological upgrades and solutions introduced, it is important for the billing, coding, and other staff to be updated.
After the pandemic, changes like telehealth services have become normal practices. It is important for these service providers to train their employees regularly.
Data analysis
Data is the king in the healthcare industry. Revenue Cycle Management services generate trillions of data every year, and such data can help forecast, analyze, and make critical business decisions that change the course of these service providers.
As an RCM service provider, if you haven’t explored data analysis much, then it is time to start doing that. Data analysis is going to be the single most important factor dividing successful healthcare service providers and those that struggle to break even.
Takeaways
Revenue Cycle Management services include a wide range of services, starting from documentation up to payment collection and posting. Service providers need to stay wary of these four challenges that may interrupt their RCM services and bring down the revenues generated when left unchecked.
Read more:
What are Accounts Receivables management services, and why do you need them?
Reasons for working with a Revenue cycle management company in India
What is a patient-focused Revenue Cycle Management Service, and why is it important?
