Revenue Cycle Management (RCM) is a financial process that healthcare providers use to track, bill, and collect payments from patients. It’s a critical part of healthcare administration that ensures medical facilities are reimbursed for their services.
RCM includes all the administrative and clinical functions that contribute to the patient care revenue cycle, from the initial appointment to the final payment. Some of the steps in the RCM process include:
Patient registration: Gathering patient demographic and insurance information, verifying eligibility, and establishing financial responsibility
Claims submissions: Submitting claims to insurance companies
Patient billing: Billing patients for services rendered
Collections: Collecting payments from patients
Outsourcing RCM can help ensure that billing processes are accurate and efficient, which can improve cash flow. Technology can also help drive RCM to the next level of effectiveness. For example, online patient portal systems can help collect patient payments without the need to generate multiple statements.