Hospitals are a messy business. Despite the physical blood and guts handled by doctors, a hospital’s revenue cycle can be tricky for them to manage. While a hospital’s primary concern is the physical well-being of the patient, at the end of the day, the hospital is still a business, and businesses need to make a profit.
Eligibility management services such as DECO unburden hospitals of the challenges they face when managing their revenue cycle, allowing the business to prioritize the patient. This article explains some of the challenges that a hospital’s revenue cycle faces.
Weak Billing and Collection
Billing your patients is just as important as curing them. Yet, over 85% of hospitals have difficulty collecting payments as soon as the patient leaves the facility. A hospital needs to find the right balance between leaving uncollected revenue on the table and overcharging patients to the point of losing them.
Improperly Trained Staff
The hospital staff responsible for billing must know how to record a patient’s demographic properly on the front end and also translate the data into successful insurance claims. This way, tracking patients’ claims and billing them in the future will be more manageable. Lack of staff training to handle such things could lead to profit loss.
Lack of Healthcare IT Infrastructure
A hospital’s revenue cycle relies on IT to correctly record all patient information. This helps with tracking claim throughout their life-cycle, making sure payments are collected and denied claims are addressed. Failure to do so can lead to loss of revenue not just in-house, but also in broader out-patient networks.
Failure to Track Claims Process
If the revenue cycle serves as the hospital’s financial heart, then the claims process is its money veins. The claims process should be monitored carefully at every point in its life-cycle. If healthcare providers do not watch claims closely, then it will be hard to determine where clerical errors are made and this could lead to lost revenues.
Hopefully, the concerns addressed here are concerns you can consult with your chosen revenue management specialist. In this manner, hospitals can concentrate on what they do best: helping the patient.