Technology has changed almost every aspect of human life today. From communication to transportation and social engagements, technology is making its impact with every passing day. The revenue cycle management system is surely no exception. There are lots of technological advancements happening in the revenue cycle management system and it is expected that in the coming days the industry will see more positive trends. On the other hand, it is imperative to maintain the financial stability of the healthcare industry when other industries are growing using advanced technologies. In this article, we will discuss some advanced role of technology innovations which are crucial in improving the hospital revenue cycle management system.
Scope of Revenue Cycle management system :
Revenue cycle management is the system in which healthcare service providers track and collect payments or revenues for the services they provide to the patient. An increasing workload on the healthcare sector increases the demand for effective management of the revenues, so the demand for advanced technology is also growing. Here is how Technological advancements are changing the Revenue cycle management of hospitals.
Patient record management through technology:
The revenue management system relies on the accurate assessment of patient records. When the patient came for medical assistance, his name, address, diagnosis, and the treatment he received everything should be recorded. Because this information is used in submitting the claim to the insurance companies.
Patient record improvement is a major contributor to raising revenue. There are systems like computer-based patient records called CPR which are specifically designed to accurately record the data. In many healthcare systems, paper records still exist for record-keeping. There are various drawbacks to using the manual record-keeping system. Inaccurate data give a setback to your RCM. With the growing need for accurate data, the demand for better CRP systems is also increasing and it is still evolving with new features.
So, by doing this we can learn role of technology in hospital revenue cycle management.
For electronic health records systems, innovation is on the way. Most of the practices previously used the server-based system to organize the record. On the other hand, the cloud system is also available for EHR. Those who used the cloud-based system understand its effectiveness and benefits in managing patient records. Cloud-based systems resolve issues like data storage, data accessibility, and any disaster situation which can result in loss of essential data.
Eradication of Manual work:
The current revenue management system of many hospitals works in a manual way. From data entry to data processing. While this system has failed to fulfill the demand of revenue management. Due to this processing, the workload of the billing team also increases. The only way to tackle this manual work is to automate the system. Automation makes it easy for hospitals to manage RCM, from the moment the patient came for the services to the moment when he was discharged and paid for the services. Problems like follow-up costs can also be reduced through the automation process.
Alternative payment options:
Many health care systems still use some traditional payment methods, which are now costing them a lot. With the advent of new technologies in every field, the behavior of the masses also changes. In today’s world, there are multiple payment options available, some of them are very popular among people.
Medical practices that are still offering traditional modes of payment may face issues like denial rates, late payments. Technology is allowing the patient to pay through different methods like electronic bank payment options, through debit or credit cards, or just by scanning a QR code through the phone. By using all these methods a health care system can significantly improve its revenue management cycle.
Digital Communication system:
Increased denial rates and clean claim submission are some of the problems faced by almost all health service providers. There are multiple factors behind this problem like coding errors or inaccurate or insufficient data of the patient. The inaccuracy or insufficiency can be reduced with the help of effective communication with the patient. Technology is allowing us to make digital communication more efficient. Now the hospital staff can approach the patient on time and collect all the essential information for the billing purpose. These digital channels further ease the billing process. Now they can send Emails for appointments, resolve patient queries and send texts or reminders for follow-ups. The advanced digital communication system is allowing hospitals to get the collections on time and lowering the denial rates.
Eliminating the coding error:
Medical coding is a process in which the essential medical records are converted in the form of codes and sent to the insurance companies for the claim. The insurance companies after checking the accuracy of the coding issue the claim. As coding is a very complex process the chances of error are significantly high even for professional coders. Due to the coding errors, the claim may be denied or in some cases rejected. Now there are multiple software solutions available in the market which are helping the billing companies and health care systems to reduce the chance of coding. It is expected that in the future artificial intelligence will help in reducing the coding error further.
Account receivable optimization solutions:
The majority of medical service providers suffered from outstanding accounts receivable. Whether the financial responsibility of the treatment is held by the insurance company or the patient itself, an enormous amount of account receivable reduces the cash flow.
The outstanding account receivable is the biggest challenge faced by the hospitals. Thankfully there are multiple options available in the market. Like there are artificial intelligence optimized solutions that work in an efficient billing process.
It’s difficult to assume the upcoming trends and shifts in the revenue cycle management system. But we can expect that in the coming days the advanced technology and A.I compliant systems will reduce the chances of errors in the billing process by a significant amount. All the present negative outcomes like coding error, denial rates, and outstanding account receivable issues will be reduced to a greater extent.
Hope you have understand all about the role of technology in hospital revenue cycle management.