It is increasingly becoming essential for healthcare institutes to maintain a healthy Revenue Cycle Management. Discussions and deliberation about RCM happen every day. This is because RCM is the basic fundamental on which revenue generation is dependent. A key function of RCM is charge entry in medical billing.
There are regular challenges that affect the smooth flow of the RCM. It is therefore essential for healthcare institutes to come up with proper resolutions in order to maintain a steady flow of revenue. Charge entries and appointment reconciliations are primary factors that affect the overall revenue flow of the system.
Understanding Charge Entry
The moment a patient schedules a diagnosis or treatment, the documentation process starts. This is for ensuring reconciliation, which the patient receives at a later time. The main reason for this motive is to ensure that the patients are aware that there are charges even for booking an appointment.
Avoiding this process leads to monetary loss. This has a severe impact on the future of the healthcare institute. Immaterial of the size of the institute, there is a recovery of at least 1% of charges which are later saved. This in itself has a huge impact on overall revenue generation.
Monitoring each appointment and taking steps towards better charges and settlements provides a deep impact on maintaining a proper revenue cycle. Also, generation of the past records and verification of the clinical documentation ensures precise charge entry. Moreover, automating the process through RCM companies helps in better management.
Ensuring Proper Reconciliation
It is essential to make sure that the charge entry and the subsequent reconciliation are regular. Failure to do so may have an adverse impact on the overall integrity and respect of the institute. Steps to ensuring a proper flow of the process –
Update in status –
It is very essential to keep the database up-to-date. Mentioning every detail in the record is essential. Confirming the entry of the patient, cancellation of appointment, or even failing to show up is all updated on the database. This helps in determining the number of patients who actually enter the healthcare institute. Therefore, institutes become accountable for the care they provide.
Releasing the charge –
Whenever the patient visits the healthcare as per the appointment, the charges get reconciled. Updating the reconciliation on the Electronic Health Record (EHR) before the patient actually walks out after treatment. Failure to do so may lead to the end of the contract between the company and the institute.
Reconciling charges –
After the documentation and updation, it is essential to associate the charges along with the appointments. Also, it is essential for the reconciliation process to be regularly updated and tracked. This ensures that the patients are properly charged for the care they receive.
Importance Of Charge Entry
There are multiple reasons why charge entry and reconciliation is essential. A few primary importance of charge entry and reconciliation are –
Increase in revenue generation –
Regulations and integration of the charge entry and reconciliation into RCM are essential to ensure a steady flow of revenue. Also, regular updates to the database also reduce any chances of a loss in revenue. Additionally, there is a significant increase in revenue generation as well.
Lowers lag in charges –
The majority of healthcare institutes take more than 3-7 days to complete the reconciliation process. However, it is essential for healthcare institutes to ensure the completion of this process daily. This helps in improving the overall efficiency of the healthcare workers as well as patients.
Frequency For Reconciliation
The revenue cycle of any institute is affected whenever there are improper payments and lags. Charge entry and reconciliation play an important role in maintaining a healthy RCM. The appointment and reconciliation charges are one of the most important features of RCM. Most healthcare institutes expect at least an increase of 1% in their annual income.
It is therefore essential for the billing companies to ensure daily reconciliations. The regular appointment and reconciliation process helps in improving the revenue generation of the institute.
Conclusion
Charge entry in medical billing is one of the most functional parts of healthcare Revenue Cycle Management. This has a direct impact on the other functionalities of the other departments. Proper and regular flow of all processes ensures maximum revenue generation.
Healthcare institutes must ensure proper maintenance of charge entry in order to maintain a smooth flow of revenue. This is essential for ensuring quality care as well.