One of the leading reasons why billing and collections matter is that when a revenue cycle is healthy, finance leaders don't have to search for resources elsewhere in the enterprise structure. Accounts receivable provide a direct line of income that can be invested in key operating areas.
"The quicker the turnover in your accounts receivable, the less cash you have to find somewhere else," Sean McAleer, senior director of revenue cycle operations at NYU Langone Medical Center, told Healthcare Finance News. "More to the point, it is the metric we use to monitor how quickly insurance companies process claims and pay the cash we are owed."
When these processes are slowed down by inefficiency and overwhelmed point people, the financial viability of the entire organization can take a hit. That's why it's important to pursue all available avenues to improve billing and collection so that receivables are handled expediently. One benchmark facilities set for themselves is a "cash in 60 days" policy that aims to have paid bills within two months of issuing care to patients. An internal audit of problem areas and current collection rates can help identify which system or goal is best for your company. That's why a bold vision for finance management can help steer organizations into the future as payments become more diverse and in some cases, harder to track down.
If your hospital, medical center, clinic, private practice or other care facility needs to upgrade its revenue cycle management, one way to achieve this is deciding to outsource receivables management. This allows administrators to focus on high priority claims so that facilities optimize their collection power.