The healthcare industry has seen significant changes in the last several years. Hospitals and other medical facilities have had to adopt new technology (some to improve their revenue management in Miami), while also having to comply with new, stricter regulations that can detract from patient care.
Over the last ten years, the industry has had to reshape how it treats patients while ensuring that all its patients receive the medical care they need and that the facility remains financially stable. Oftentimes, this can feel like a juggling act. In all the modern chaos and confusion, hospitals and medical facilities must continue to focus on how they manage their revenue, which is still one of the most significant aspects of ensuring a successful organization.
The following are the most common reasons why the industry is struggling and suggestions to get on the right track.
Collecting Payment at Point of Service
Even with healthcare insurance, patients have always had to cover many costs on their own. However, in recent years, high out-of-pocket spending has increased significantly and patients have struggled to cover the additional expenses. Medical facilities, particularly smaller practices, have waited until after the patient is discharged to ask for payment. Many practitioners find it difficult to collect payment at the point of service, which has caused a burden on the industry as a whole.
While asking the patient for payment after they have been discharged or once they have recovered may seem like the honorable approach, it is not an advisable strategy. Some patients do not stay up to date on their medical bills and can feel taken advantage of when they receive a large medical bill they did not expect. As a result, the better solution is to ask for partial payment. This can better ensure consistent cash flow and that bills will get paid in a timely manner. It is one important step in properly managing the revenue cycle in a healthcare facility.
Medical Billing Errors
Medical billing is the most important feature in a revenue cycle. However, it is not uncommon for most of the bills to contain errors. According to the CEO and founder of Medical Billing Advocates of America, his organization found errors in three of four medical bills they reviewed – in other words, 80 percent of all medical bills that were reviewed had errors.
This can a number of problems for the facility and the patient. Hospitals can be charged with fraud even if the error was unintentional, while patients often experience rejected claims by the insurance company. Sadly, one of the most common problems found is upcoding. This is illegal, and facilities can incur a penalty of up to $250,000 in fines and five years in prison. Again, even if the error was accidental, penalties are just as severe. As a result, these mistakes are to be corrected as soon as possible or better yet not occur at all.
The billing system is extremely complicated in the U.S. healthcare system, which is why hospitals and practices must rely on healthcare revenue cycle management in Miami. By hiring a team of professionals, such as the specialists at J3 Revenue Cycle Management, together, can develop a process that better ensures all medical billing is free of errors.
Trouble Adopting New Technology
The healthcare industry has taken large strides in adopting new technology over the last decade, but change has been slower than in other industries. There are many reasons why facilities do not want to go digital, the primary reason being compliance, which adds extra work to an already full schedule.
One area where medical practitioners should not refuse to go digital is with their revenue management cycle. Nevertheless, many practices hold firmly to the old way of handling their finances. Properly managing your revenue can ensure all patients receive the right treatment and keep your employees happy, as they are always paid on time. With the right technology and training, nothing will slip through the cracks. Revenue management may seem like a daunting responsibility, but it doesn’t have to be. When you reach out to our team, you will receive comprehensive solutions and specialists who employ a more hands-on approach.
Contact J3 RCM
Our team strives to provide comprehensive solutions to improve your revenue cycle and keep your staff happy, increase patient satisfaction, and reduce medical errors that have costly consequences. For revenue management services in Miami, contact J3 Revenue Cycle Management.
Call (954) 544-2706 to learn more about our services.