3 Ways to Reduce Hospital Revenue Cycle Management Costs

Dec 20, 2019
Decreasing overhead enables care providers to dedicate limited financial resources to where they are most useful: procuring new equipment, hiring personnel, training existing staff and other investments. Allaying financial scarcity entails identifying the largest costs and implementing processes to reduce them.

The hospital revenue cycle is a major source of fiduciary waste in health care institutions. A study from McKinsey & Company found that revenue cycle inefficiencies cost 15 cents on every dollar health care institutions obtain. In a $2.7 trillion industry, $400 billion goes to claims processing, billing and revenue cycle management. How can providers reduce this financial burden while maintaining compliance and without compromising the patient experience? Here are three powerful strategies to consider.

1. Outsource workers' comp and MVA Complex Claims 
Given the financial and regulatory pressures under which hospitals operate, they rarely possess the administrative resources to optimize the revenue cycle, especially with respect to receiving payment from automotive insurers and workers' compensation programs.

Consider the following situation: A New Hampshire hospital treats a patient from Massachusetts who was in a serious car accident. Delivering the care costs $12,000. In this case, the hospital will have to coordinate benefits between the patient's automotive insurer and his health insurer to determine proper reimbursement allowed on the claim, according to Massachusetts State Law.

The patient finance department may not have the technology or expertise needed to efficiently orchestrate payment from both parties. Collecting payments from a Massachusetts-based auto insurer may not warrant the same system as obtaining settlement from an auto insurer in New Hampshire, given that the latter state possesses at-fault laws. In addition, if the hospital discovers minor injuries that require treatment, but may or may not be related to the accident, the auto insurer may push back over which charges it should cover. 

To reduce health care RCM costs, hospitals should consider outsourcing their workers' comp and automotive insurance payments management to parties that provide health billing services, manage attorney correspondence, negotiate claims and conduct other administrative responsibilities. According to Black BookMarket Research, 54 percent of health care financial executives believe outsourcing RCM enables them to increase efficiency and improve fiduciary well-being. 

2. Find a RCM partner that optimizes IT consumption 
IT can either be burdensome or advantageous, depending on the manner in which administrators utilize existing systems. When outsourcing their RCM, hospitals must assess their partners' technical wherewithal and resources, asking the following questions: 
  • Is partner's application proprietary? If so, does it have a robust, responsive and dedicated development team? 
  • How does the application support claims management? 
  • Is the application compatible with in-house resources? Does it require any special integration? 
  • What differentiates the partner's application from third-party solutions?
The latter question warrants further expansion. The value an RCM partner's technology brings to the table depends on how well the partner integrates its knowledge expertise into the application's function. For example, the solution must bring clarity to complex claims processes involving interstate communications while acknowledging the state laws and guidelines. 

3. Keep patients informed on medical billing 

Hospitals must also educate patients as to who will pay their bills under specific circumstances. Chad Sandefur, director and healthcare analyst at AArete, explained that ensuring patients develop this knowledge is critical to avoiding bad debt, RevCycleIntelligence reported. 

"By training staff to collaborate with patients and to educate them early, it removes the surprises when the bills come and that facilitates the payment component," Sandefur told the publication. 

Providing such knowledge does involve detailed instruction, however. RCM partners can assist administration in educating nurses, physicians and other staff to mitigate the burden of transferring information to professionals interacting with patients. 


By doug 22 Jul, 2020
In 2016, healthcare vendors need the most efficient claims processing systems out there. By now, flexible, web-focused methods for important claims tasks are clearly the industry's path forward, and will play a major role in bridging the gap between patients and providers. A fast, digital claims method makes a direct link from implementation to delivery for workers' compensation and motor vehicle billing alike. Now is the time to invest in better revenue cycle management, with a focus on detail-driven, well-facilitated collection that breaks down barriers. Despite the growing pains involved with adopting any new technology, there are a couple of areas where smarter systems have already improved claims processing online. Direct accessibility With each new convenience, the future of healthcare looks more integrated. Data analytics harvests insights from seemingly unrelated details for fuller results. To make this innovation worthwhile, however, there needs to be a distinct pipeline between entities. "Data analytics harvests insight from seemingly unrelated details." Online healthcare portals are already addressing this need, providing direct communication through smart devices like phones and tablets. By bringing necessary information together in a simple, accessible source, these solutions set the stage for clean claims assembly. Shorter cycles Proper collection from the outset can reduce the amount of work hospitals have to do later if the claim is resubmitted, according to Gary Marlow, Vice President of Finance at Beverly Hospital and Addison Gilbert Hospital. "From a revenue cycle perspective, getting the most accurate information up front starts with patient scheduling and patient registration," Marlow told RevCycleIntelligence in 2015. "That provides the groundwork by which claims can be billed and collected in the most efficient and effective manner possible." The way information enters the claims process can impact how it gets managed. If technology, like artificial intelligence, is present at the beginning and guides the claims throughout, there's a consistent system handling the information the process to meet best practices. PROMEDICAL's benefits With our secure, efficient and comprehensive system, PROMEDICAL is staying ahead of the game. We're doing that by developing the following features: Communication: Users can choose from multiple languages with our online offerings. This allows you to customize your system to better reach patient populations and keep claims moving faster. Customization: If our proprietary options aren't currently meeting your needs, we can change them to do so based on feedback. Adapt to state fee schedules or language demands on a case by case basis. Encryption: A must for secure file exchange, PROMEDICAL ensures a secure file transfer process. Our process protects backup data equally strong as primary data, for efficient security across the board. Planning: Organizations also benefit when a set deadline is involved, putting clear limits on when submissions are set for review. Processing records requests within a preordained period of days helps managers know what to expect, and regular reports set up clear overviews of important statistics. Contact PROMEDICAL today to learn more about our healthcare revenue cycle solutions.
By doug 02 Mar, 2020
According to Pew Research, 15 percent of U.S. adults have used ridesharing services . Where does insurance enter the picture? Uber, Lyft and other ridesharing apps throw a proverbial wrench in hospitals' revenue cycle management operations. Billing is already a major pain point in hospitals – Black Book Research noted most facilities are outsourcing their RCM because in-house teams lack the resources to efficiently handle motor vehicle reimbursement. Ridesharing will only exacerbate the issue. For example, if a rider gets injured and has to go to the hospital, from which institution does the hospital receive reimbursement : The driver's insurance? The passenger's? Uber's? As Uber and Lyft are the most popular ridesharing apps, we'll focus on how these companies handle driver insurance. How do Lyft and Uber insure drivers? Lyft has three types of coverage within its insurance policies: Contingent Liability activates when a driver logs into the app and requests to accept rides – a state Lyft designates as "Driver mode." This coverage provides up to $100,000 per accident for bodily injury. Contingent Comprehensive and Collision kicks in when a driver has picked up a passenger. This coverage applies when a non-collision event damages the driver's vehicle. Uninsured/Underinsured Motorist applies when an at-fault driver who is uninsured or underinsured causes bodily injury to himself, his passengers or any third parties. The coverage provides $1 million per incident, and includes no deductible. For example, if a driver is injured in an accident at a time when he is not working for Lyft, his personal insurance will cover him (assuming he lives in a no-fault state, but that's another issue). However, when the driver activates Driver mode, Lyft's Contingent Liability will protect him even if he hasn't accepted a ride from a passenger. What if the driver's at fault? According to Rideshare Dashboard, Lyft's commercial insurance will cover all damages to third parties and the passenger, but the driver will have to cover his own medical expenses. That's when state laws dictate payment. In Massachusetts, for example, which also happens to be a no-fault state and requires all motor vehicle owners to possess auto insurance, the rider's personal auto insurance will cover the medical bills. Uber's insurance system is somewhat similar to Lyft's but possesses a few minor differences. For example, when an Uber driver is transporting a passenger, and another motorist causes an accident that results in bodily injury to the driver, the passenger and anyone else involved, Uber's UM/UMI will cover bodily injury of anyone in the rideshare vehicle.
By doug 28 Jan, 2020
With new, transformative technological advancements on the rise, it's no surprise that nearly every industry is feeling the impact of the digital age. From a healthcare provider's perspective, new resources can be used to revamp the current revenue cycle management processes you have in place. To reap the benefits of an optimized approach, you must be willing to take advantage of such emerging technological tools and resources, as stated by Chad Sandefur, Director and Healthcare Analyst at AArete. "Generally speaking, in order to strengthen the revenue cycle management, embracing technology within the revenue cycle is key," Sandefur shared with RevCycleIntelligence.com. "Having the platforms to seamlessly facilitate provider-payer interactions are really integral. In many cases, it's mostly about bad debt avoidance. With that in mind, there are a few specific points." Let's take a closer look at the benefits of utilizing technology, plus some of the emerging resources your facility can use to revamp your current RCM processes: The benefits of an optimized approach By paying attention to the new digital advancements that can benefit your RCM, you can ultimately impact the workflow of your staff members while better streamlining services for consumers. Here are some of the advantages of an optimized approach: Reduced chance for human error – Human error is inevitable when handling large amounts of data. Management software can be used to keep track of patient data input and maintenance. Better opportunity for precise, automated data entry – Between appointment scheduling, data input and claims submission, employees have a lot of duties. Automated software can take care of some of these responsibilities, allowing staff members to better focus on a single task at a time. I ncreased cash flow – Claims management technology can expedite claims quickly and produce clean, accurate claims, ultimately increasing cash flow , as stated by Becker's Hospital Review. Optimizing your RCM approach can lead directly to a significant return on investment and improve the overall reputation of your billing department.
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