Revenue Cycle Management (RCM) in Healthcare

The term Revenue Cycle Management or RCM as it is abbreviated is a common term in medical practices. At initial contact with a patient the revenue cycle begins and closes once the charges are paid in full and a zero balance is shown on the accounting register. For example: A Physician might see a patient for some problem, correct the patient’s complaint, see them for follow up, and done. It may be that doctor may never see that patient again. So the RCM related with that patient opened at the time of consultation and ends once the visit is completed and is closed with a relatively short shelf life.

Like any other businesses, there are various costs associated with medical practices. Considering the relation between a doctor and a patient, medical practices comparatively have a difficult time maintaining the RCM or to manage balance in their medical practices. The cost associated with a medical practice can be seen as:

• Medical staff: Salaries, insurance benefits, sick leave.
• Rent for the clinic/Hospital space, other utilities
• Taxes
• General Supplies: Paper, Folders, Pens
• Storage space needed for storing past medical information in a traditional paper environment, etc.

So to maximize the profit like any other businesses, medical providers have to watch closely the expenses with their income, which is a big challenge for them. So gaining efficiencies with an EMR will be a good step, which ultimately helps in reducing the expenses with its own benefits in their respective medical practices. The benefits of EMR are told and written many times on various platforms, but still it is most important to mention the benefits in terms of TIME & MONEY saved, which is the ultimate goal of implementing EMR in any type of medical practices:

• Quick and easy access to any patient information as and when required
• Automation of work flow helps in reduction of staffs, which ultimately reduce your expenses.

These are the basic but two most important benefits of EMR, which can’t be achieved without it. The medical practices can be made more efficient and more profitable with the addition of an EMR to track and bring closure to the RCM. Implementing EMR and to get its benefits, it is very important to understand that even the patients and clinical staffs are a part of it.

The best way to involve clinical staffs is to sit together with them weekly and keep the line of communication straight, simple and strong, so that they will also be on the same course as you are. The communication may be related with better patient care, improving efficiency in the clinical work flow, individual tasks and the like. It is for sure that every individual will not work on the same wavelength, but the lines of communication need to be kept open and ongoing, so that they can also discuss their issues or concerns and help the whole process of implementing EMR more clear and fruitful. The entire team needs to work together to insure the successful deployment of EMR and achieve the goals associated with this.

Also the patients have become more educated (thanks to Internet), and in most of the cases they have the information about their problems prior to the visit to a doctor. So your EMR will be the right tool to make them understand that their information is safe & stable than they are on Paper. So educating your patients, who are the primary beneficiaries- can help themselves by helping you. If Patients realizes that the information of them is more stable and safe, there will be no conflict.

Medical practices looking to gain and maintain strong revenue cycle performance should understand that there is a need to train the individuals associated, whether they are their clinical staffs or patients to achieve their desired goal.