Revenue of a company is its asset which is received from its normal business activities or by providing services or selling goods. Revenue Cycle Management is the business practice which permits the firm to be confirmed that the clients or the customers have paid the bills on time.
Revenue Cycle Management (RCM) is an extensive approach which judges, amends and administers most of the components in gaining patient encounter information and implementing it to guarantee patient safety. It also creates a streamlined, articulated work flow designed to optimize and accelerate remuneration.
RCM is a nutshell where the steps are taken to convince that one gets paid for what one does and also gets paid in a timely fashion. The Revenue Cycle initiates when the patient calls the Revenue Cycle Management Company for an appointment and the staffs acquire the patient’s name & number along with the name of their insurance company. The cycle terminates when the balance on the patient’s account is zero.
The RCM follows certain key components. The patient gets registered for appointment and scheduling whose data is available for the demographics information. The insurance eligibility check or eligibility verification is performed which also includes authentication check. The system generates claim for the services provided to a particular patient. The claims are tracked and reported when the claims are received, delivered and accepted by the payers. The claims are complied and filed with the insurance company & the due balance and follow-up process is executed.
The medical coding is done and medical billing management services is carried out. The medical billing includes submitting and following up claims to insurance company in order to receive the payments for the services provided by the system. Further, the charge entry and cash posting, A/R denial management, A/R collections & follow-up and charge capture & coding is done. Finally the patient is followed up or the third-party payment compliance is done.
The Revenue Cycle Management or RCM helps a company to gear up and accelerates the cash flow. It is a structured & organized operations and aids in faster revenue realization. Moreover, it is the key to monitor the revenue cycles.