July 09, 2014
Many practices across the US are witnessing steep decline including negative profitability due to payment cuts and outdated records and billing technology. They are certain that their existing RCM technology won’t be able to accommodate upcoming regulatory updates and requirements.
Industry Facts :
According to a new survey by Black Book rankings, investment in RCM technology is increasing. Hospitals and private practices are updating RCM technology to combat rising debt levels and falling profits
Around 87% of physician practices agree that they need to upgrade their billing and collections system
As per Black Book rankings, the RCM software and services industry surpassed $12 billion in the ambulatory physician practice segment in 2013. This increase has been the result of high demands encountered from payment and reimbursement reforms, ICD coding challenges and sharp reimbursement cuts
Drawbacks of having an Outdated RCM Technology:
An outdated RCM solution can lead to reduced collections, low workflow productivity, untimely patient care and decentralized operations. Many business managers fear that if practices don’t have the latest technology (one that is integrated to an EHR), it will force providers to sell their practice to a hospital or large physician group.
An inefficient revenue cycle will create room for mistakes in the early stages that can grow worse as the cycle progresses. Even a minor clerical error can impact future processes in a negatively. It can also cause inconsistency in the billing phase. Providers should realize that RCM is extremely vital to keep a practice running well. An outdated system can lead to negative profitability and disrupted cash flow.
Why should Practices Optimize their RCM?
Practices need an updated RCM solution in place to get timely payments. In order to enhance the efficiency of revenue cycle, trained coders are required for allotting the correct, updated CPT, ICD, HCPCS codes. Providers will have to incorporate the latest EHR system and impart adequate training to the coders so that they can optimize the revenue cycle and offer best results.
Considering declining reimbursements, strict criteria for meeting patient quality and increased audits, providers are left with no choice but to update to latest RCM solutions. This will help them handle challenges related to reimbursements.
Market for RCM technology is set for a major transformation as practices are preparing for patient influx and new payment and delivery models. With the changing market dynamics, outsourcing seems to be an effective option to sail through revenue cycle challenges.
Optimizing Revenue Cycle with MBC:
MedicalBillersandCoders.com assists practices across all the 50 states of US strengthen their revenue cycle. MBC offers RCM solutions to providers after a detailed scrutiny of their revenue cycle, finding areas of deficiencies.
RCM experts at MBC are well-trained in identifying and exposing revenue leakage by analysing the following areas:
Inadequacies in software
The team works with the aim to solve the above-mentioned issues and ensure smooth cash flow, boost revenue, streamline processes, and improve staff productivity with the latest RCM solutions.
Effective RCM Solutions
Revenue Cycle Management