Issues and Trends that Affect the Revenue Cycle Management Industry
Revenue cycle management is a financial service provided to healthcare facilities to enable them to track the transactions between the patient and the hospital from registration to final payment. Just like financial management consulting companies, RCM offers guidance on paying taxes and insurance services to help the client plan for future finances. Financial specialists at Nearterm note industry-wide issues and trends that affect RCM delivery.
High Cost of Collection Services
The cost of collecting patient bills has been rising. This cost increased from 1.9% in 2011 to 2.6% in 2013’ according to McKesson. The increase has been one of the worrying factors as it has affected the revenue made by healthcare organizations.
Most of the healthcare system executives are not certain their organization has a strategy focused on the consumer. This is disturbing since the consumer focus should be the top strategy in any organization. An unclear customer focus shows the organization is not prioritizing on what is important.
Call for Price Transparency
In revenue cycle management, the patients are asking for more transparency in bills. This is a result of regular surprise bills. The lawmakers are also condemning this action, and they are campaigning for more transparency as it is disappointing to get a bill that was not expected.
Billing after Patient’s Deductible Is Met
There has been a concern on billing. Some argue that it is good to bill the patient once a deductible has been made to avoid confusion on when to pay. Traditionally, billing is done immediately after provisioning of care services, and this overwhelms the patients.
Due to increased competition among RCM vendors, revenue margins have decreased. Health care providers are considering third parties who can ensure improved revenue performance. The market could gush as more innovations on claims, collection, and technology systems are emerging.
Patients, employers and care providers are concentrating on containing healthcare costs. There is a lot of pressure on healthcare organizations, as they expect it to rise as consumers take on the higher financial obligation of footing future healthcare bills. Revenue efficiency is the primary goal of healthcare organizations.