Revenue Cycle Management (RCM) is on the mind of many, if not all, hospital administrators and executives. With the roll out ICD-10 and the changes to reimbursement models, new RCM solutions are becoming critical for hospitals hoping to survive through 2015. Right now, it’s the decision of whether or not to seek new RCM solutions that many hospital leaders are grappling with.
The pressure is high, with a reported “61% of hospital CFOs and business managers in struggling hospitals already expecting to be fired by 2016 because their RCM software, staff, and solutions were powerlessly stuck in fee for service mode too long.” Many larger more financially stable hospitals are already reaping the rewards of next generation RCM solutions. The question for many hospitals isn’t how a RCM revamp can benefit their organization but if the sacrifice is worth it?
From data collection to debt collection, RCM is at the core of any organization. According to Health IT, revenue cycle management is “the process that manages claims processing, payment and revenue generation. It entails using technology to keep track of the claims process at every point of its life, so the healthcare provider doing the billing can follow the process and address any issues, allowing for a steady stream of revenue.” Essentially, it’s a process that begins when a patient makes that initial appointment and ends when payment is received.