Managing Revenue Cycle
By Stacy M. Menz, PT, DPT, PCS
Revenue Cycle Management—three of my favorite and least favorite words all at the same time. I love them when payments are coming in, agings are appropriate, and days and Accounts Receivable (A/R) are short. I’m not so fond of these words when those metrics trend in the opposite direction and the A/R is creeping up and there are mistakes—causing payment to be delayed—or insurance errors have occurred. Needless to say, having a strong revenue cycle team that truly considers all aspects of this cycle is key to keeping your finances on solid ground.
This month, in “The Cycle Never Ends,” Eric Cardin takes a look at the big picture of revenue cycle management (RCM) and explains how each part connects to the next. What are the touches involved from the first client encounter to a paid claim? Are you maximizing each touchpoint to be the most effective?
“Alternative Solutions Needed,” by Susan Nowell, breaks down components of RCM in the current traditional practice paradigms. She further discusses how changes in health care and advances in technology are opening up the doors for alternative solutions. This piece can jumpstart a brainstorming session with you and your team: Are your systems the most effective? How can they be updated to address and take advantage of changes?
Phyllis Levine tackles technology. Can the advances in technology translate into increased profitability for private practice? She looks at areas where technology can support our practice in data collection and communication to allow informed decisions that will drive your business practice.
“Making the Most of Your Relationships,” by Sturdy McKee, puts a spin on using data to drive marketing decisions. He presents one more way you can look at your practice’s metrics in terms of revenue and use that information to drive how you manage your referral sources.
As you can see, this issue has a variety of insights on the topic of revenue cycle management. I know that it has triggered some questions for me to find the answer to and see if those answers will translate into a more efficient and effective approach to RCM. Another great resource is the Revenue Cycle Management Compendium (see p. 14 and 79), which includes articles from past issues of Impact on this topic.
I’d love to hear your stories about how you have taken what you are reading and translated it into practice!