Creating a Proactive Revenue Cycle Strategy




 The effectiveness of revenue cycle management relies on a proactive approach that integrates key performance indicators (KPIs), benchmarking, and frequent performance evaluations.


The revenue cycle plays a crucial role in the long-term financial sustainability of healthcare practices as it impacts all areas of their operations. To enhance revenue and streamline processes, healthcare practices are adopting a proactive revenue cycle strategy that involves optimizing each stage of the cycle and addressing vulnerabilities before they become problems.

By embracing a proactive revenue strategy, healthcare practices can improve their revenue cycle and maintain a cohesive approach to people, processes, and technology. However, to successfully execute a proactive revenue cycle strategy, practices must establish clear goals, understand industry benchmarks, and conduct regular performance reviews.

Define Goals and Establish KPIs

When developing a proactive revenue cycle strategy, start by defining clear goals and establishing key performance indicators (KPIs). Analyzing last year’s metrics can provide valuable insights into identifying trends and problem areas, as well as establishing a baseline for measuring progress.

When outlining practice goals focus on the most critical areas and provide clear direction to staff. It’s important to avoid setting too many goals and instead focus on simple, achievable objectives. Using action verbs in goal statements can help encourage a proactive mindset.

Monitoring KPIs is essential for maintaining a constant pulse on revenue cycle strength. KPIs provide direction, help monitor financial health, improve forecasting, measure progress, and identify issues and opportunities. They should be objective, measurable, and show a trend or comparison over time. Common KPIs tracked in a proactive revenue cycle strategy include days in accounts receivable (A/R), aging periods, unapplied credits, revenue per visit, and collections ratio.

https://www.allzonems.com/proactive-revenue-cycle-strategy/

Comments

Post a Comment

Popular posts from this blog

2023 Scary ICD-10 Halloween codes For Physician

Image
  With Halloween right around the corner, be on the lookout for some of these incidents that may require new ICD-10 codes. ICD-10 CM Code W49.01 – HAIR CAUSING EXTERNAL CONSTRICTION W49 . 01XA  is a billable ICD  code  used to specify a diagnosis of hair causing external constriction, initial encounter. A ‘billable code’ is detailed enough to be used to specify a medical diagnosis. ICD-10 CM Code X99.2 – ASSAULT BY SWORD OR DAGGER X99.2 is a non-billable ICD-10 code for  Assault by sword or dagger . It should not be used for HIPAA-covered transactions as a more specific code is available to choose from below. More specific codes – 7th Character selection: The appropriate 7th character is to be added to each code from category X99 Use X99.2XXA for initial encounter Use X99.2XXD for subsequent encounter Use X99.2XXS for sequela ICD-10 CM Code R44.1 – Visual Hallucinations R44.1  is a billable ICD code used to specify a diagnosis of visual hallucinations. A ‘billable code’ is detailed eno
Read more

Medical Coding Strategies to Prevent Payer Denials

  As a former emergency department physician from the U.K., this individual was well aware of claim denials and rejections, with payers frequently withholding or reducing payments. However, it was only when his personal insurance company, denied his medical claim for a vitamin D test that he decided to delve deeper into the issue. He found it challenging to comprehend how Cigna could make such a decision when the physician reviewer had limited knowledge about his medical history. The individual had been experiencing severe pain in his hips and acetabulum, with his physician suspecting a vitamin D deficiency. Following the payer’s instructions, he appealed the denial, but unfortunately, health insurance upheld its initial decision. It was only after seeking an independent external review that finally reversed the denial. The external reviewer concluded that the test was medically necessary, considering the severity of the bone pain and the risk of bone fracture without vitamin D supplem
Read more

Medicare ASC Payment System 2024 Update: New HCPCS Codes & Changes

Image
  Get ready for new codes , updated categories , and a few surprises : Pass-through power:  Five new devices (C1600-C1603) join the pass-through party, while some old friends (C1825, C1052, etc.) say goodbye. Remember to use the January 2024 ASC code pair file for billing. Biology guides the beam:  A new code (C9794) shines a light on radiation therapy guided by biology, including PET and CT scans. Dentists get dialed in:  104 new dental codes (CDT) are now accepted in the ASC system, with special indicators for ancillary services and non-office procedures. Don't forget code G0330 for facility fees on dental rehab, but keep it separate from medical billing  charges. In short, there's plenty to keep you busy in the new year!  This update gives you more options for billing various procedures and devices, so be sure to brush up on the details to ensure smooth sailing with Medicare. Key changes: More engaging and accessible tone. Replaced technical jargon with plain language. Used
Read more