According to Healthcare Dive, more than 75% of doctors are employed by corporations. These corporations provide backing for doctors and healthcare practices in addition to being a source of patients.
But where does that leave small healthcare practices struggling with their finances? Small healthcare financial management poses an enormous risk that corporate doctors rarely interact with.
A Medical Revenue Service or accompanying RCM is a great solution to improve financial performance for practices. Here’s a brief overview of what you need to start optimizing your healthcare revenue cycle.
What Is a Medical Revenue Service?
While the name sounds complex, medical revenue services are rather simple. The name refers to a service that assists a practice with keeping track of its revenue.
To put it another way, an MRS helps with medical billing and all other financial processes. Other areas include:
- Claims management and payment
- Collections of due fees and costs
- Patient accounts receivable and other payments
These services are effective if you need to take another look at your billing processes. They can also help you develop different strategies to maximize reimbursements.
Revenue Cycle Management
You may also encounter the term “revenue cycle management” or RCM. What’s the difference between MRS and RCM?
MRS is typically a shorter process that goes on a case-by-case basis. These claims focus on specific cases and their reimbursement.
RCM is an ongoing and long-term process. RCM focuses on monitoring and adjusting behaviors for optimal revenue. Simply said, MRS is short-term, while RCM is long-term.
Practicing Small Healthcare Financial Management
Medical revenue service is critical for smaller healthcare practices. Every penny counts, and mismanagement can lead to months of playing catch-up. In severe cases, financial mismanagement can result in the closure of a practice.
Small healthcare financial management is one of the most difficult parts of managing a practice. That’s why the benefits of revenue cycle services should never be overlooked.
Ongoing Adjustments
RCM is critical for keeping your income steady. Since RCM involves keeping a close eye on your finances, it’s something that you’ll interact with frequently.
One common problem that RCM may target is communication. Patients may not know when their bills are due or for how much. In some cases, they may not know what they’re paying for.
Communicating such costs to your patients is integral. Not only does this ensure proper payment, but it also ensures the client doesn’t feel cheated when they see a high bill. According to USC Annenberg, effective communication positively impacts the patient-provider dynamic.
Mastering Your Revenue
Finances are one of the most stressful parts of a small business, but it doesn’t need to be. Utilizing a medical revenue service and RCM will help you keep your finances tracked and optimized.
At MedMan Medical management, we believe that teams produce better results than individuals. Our team of hand-picked revenue cycle specialists is dedicated to forming a team with you to help your company soar. Contact us to see how our combined 500 years of experience can be used to your benefit.
