Question

What does it mean to "modernize the revenue cycle?" Why is this important for healthcare organizations? How can managers implement these recommendations?

Answer 1

The "modernize the revenue cycle” means processing and billing the charges and collection/recovery of the dues without fault at minimum cost and least time.

It is more important for healthcare organizations because just charging bills and keep collecting the dues is not the prime objective of any healthcare organization. Their main objective is to take care of their patients and provide best treatment to cure the patient in the least time. So, to modernize the revenue cycle is very important for healthcare organization through synchronizing the various charges along-with the codes and placing the bill due to the patient at the right time while getting discharge with appropriate coordination with the insurance agencies.

The managers can have a quick implement of the recommendations regarding the modernization of the revenue cycle through following steps:

1) Codification: The various charges should be coded so that the billing system of medical services should be well drawn.

2) Insurance: The patients now-a-days use to have insurance coverage, so the billing system should be well coordinated and implemented with the insurance companies or agencies.

3) Claims management: The various payments which are posted on the bills should be in chronological order, so that the insurance claims should be made easy.

4) Accounts receivable management: The recoveries from various parties the individuals or the insurance companies should be managed with the integrated revenue management software.

5) Analysis: The Collection and Payments report should be generated through the integrated software to analysis the net receivable and net payable amount. The contribution of the medical process can also be accessed through the “Modernized Revenue Cycle”.

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