As hospitals continue to look for ways to cut costs and wring more money out of their operations, they may want to explore a revenue cycle management approach, according to RevCycleIntelligence.
Such initiatives are critical in the hospital environment, particularly as chief financial officers and other financial executives become more of the "go-to" people to keep facilities and healthcare systems functioning at peak efficiency. CFOs also have to become more attuned to the long-term operations of their hospitals and systems and must think in terms of how patients are affected by outside factors, such as the neighborhoods in which they live.
Among the best ways to pursue an improved revenue cycle management strategy include:
- Reduce overhead costs, paying close attention to administrative costs.
- Improve patient satisfaction as happy patients are more likely to adhere to their medication and care management plans, reducing readmissions and costs.
- Embrace new technologies, such as clinical decision support systems to help dramatically reduce duplicative care, such as laboratory tests.
But be aware that there are challenges to taking those approaches, according to another article by RevCycle Intelligence, Among them:
- Patients being squeezed too hard to pay their bills. This could drive them to seek care elsewhere in the future.
- Lack of healthcare IT infrastructure. Some hospitals are not able to invest the amount required to engage in effective revenue cycle management. That can lead to problems in executing an effective initiative.