Question

Discuss the four basic business activities that are performed in the revenue cycle (Sales order entry, Shipping, Billing, Cash collection) and  how can Information technology can assist these business activities to improve the efficiency and effectiveness of the firm.

Answer 1

An efficient revenue cycle is critical to ensuring timely and appropriate reimbursement for patient services. That efficiency requires that multiple systems, departments, and processes work together to smooth workflow, promote consistency, and reduce rework. Integrating the scheduling and registration systems makes data available faster and eliminates redundancy in data entry. By integrating the IT components listed in the table at right, organizations will enhance their ability to use data. Document imaging has become an important function within the revenue cycle process. Imaging also speeds up the processing of release of information requests by eliminating the need for staff to manually retrieve and copy paper records required for reimbursement justification or appeal of denied claims.

Another key factor in an efficient revenue cycle is capturing accurate data at the point of origin. For each IT component in the cycle, a quality assurance process should be in place to validate data accuracy, preferably within 24 hours of the data being captured. For example, quality checks should be performed in patient registration to ensure accuracy in the collection of patient demographics and insurance information before erroneous data are used downstream. Creating a centralized denial management database eliminates duplicate data entry and provides a single repository to support case tracking and report generation One of the challenges to implementing a strong revenue cycle management process is the cost of integrating systems. Interfacing independent systems or applications is expensive. Cost-benefit analyses can determine if the integration will result in a reasonable return on investment. Information security is another challenge. Integration results in more widespread access to and use of data. It is critical that appropriate security measures be put into place to protect patient data at the highest level possible for all integration projects.

Increased efficiency – By moving away from manual, paper-based or less automated digital processes, your staff can free up time to focus on other tasks such as researching industry trends and new service offerings, new marketing opportunities, and of course, devote themselves to providing better patient service.

Eliminate paper – Printing and chasing paper documentation is not only time-consuming and bad for the environment, but it opens you up to human error, lost or unreceived communications, additional paperwork, issues with faulty or lagging mail service, and more. Errors can mean claim denials and delayed payments which can shoot your accounts receivable (AR) through the roof. The industry is transforming into one that rapidly accepts technology to enhance the profession and leave the paper behind.

Cost savings – Finding a technology provider that offers multiple technology offerings can provide savings to your dental practice. When you work towards digital automation, your practice can save thousands over what you might spend on paper, mailing, and even hourly pay for staff as they require more time to complete tasks. Consolidating vendors for services like claims, attachments, and encrypted email means cost-savings for you; and, as a bonus, having a single service provider means better customer support and less phone or web inquiries taking up your staff’s valuable time.

Simplicity – Once you are up and running with the right technology for your back-office, the first people to benefit are your team members. With minimal training, they can immediately see how simple it can be to manage back-office tasks like insurance billing.

Improved communication – With technology like dental practice management software, email encryption and electronic claims and attachments working for you, your end-to-end communications are more secure, more accurate, and highly trackable. This benefits everyone involved in your revenue cycle, resulting in faster claim processing and reimbursement from payers as well as and improved treatment acceptance and payment from your patients.

Thus with the trend and requirement of now it is necessary for an business to automate a business and also helps it in increasing its efeciency and provide effective services