Revenue cycle and supply chain are inextricably linked

Jun 26, 2015 | Hospital Budgets

There is a great deal of supplies that hospitals are required to buy on an ongoing basis. From rubber gloves to high-end medical equipment, cafeteria food and cleaning supplies, supply chain management is an important feature of running an efficient enterprise. On the other side, collections provide the resources necessary to make investments in small orders and large products alike. 

One of the best ways hospitals can address inefficiencies in the supply and revenue cycles is to conduct a thorough review of what's currently working and what could use an adjustment. The danger of failing to do this is that issues can worsen when they go unaddressed. According to Jason Busch, collaboration between hospitals and third parties can help refine that process. 

"Despite the high budget percentages, many hospitals do not implement supply chain optimization strategies. Nonetheless, supply chain is an important facet of revenue cycle management. Supply chain functions requiring special concentration include contracting, strategic sourcing, procurement and inventory management," writes Jacqueline DiChiara of RevCycle Intelligence. "Likewise, areas of the revenue cycle functions demanding closer examination include patient record access, charge master accuracy, coding, charge capture, and patient accounting."

Your medical care facility may lack the resources to invest in better supply chain management if its revenue cycle is congested around collections. Accounts receivable offices that are inundated with a high volume of petty claims might lack the manpower and bandwidth to address more important hospital finance issues. 

When facilities make the decision to outsource receivables management, they reduce the burden on administrators and free up resources to invest in meaningful areas of operations and budgeting. Contact Professional Medical Services today to learn more about our solutions for better resource management.