The multistep process of revenue cycle management often results in a high cost to collect for smaller practices. Cost to collect is an important key performance indicator (KPI) that healthcare organizations use to track the expenses involved in patient financial services. It encompasses all costs associated with patient billing, including employee wages, office facility overhead, and even the cost of paper for invoices. A lower cost to collect is often an indicator of a more efficient revenue cycle, which results in healthier margins and better financial performance.
A 2019 report by the Advisory Board indicates that for many health systems, the cost to collect can range from 1.5% to as high as 3.5% of net patient revenue. Finding ways to lower this percentage is an ongoing challenge, and this is where revenue cycle automation comes into play.
Automating the revenue cycle by using technology to handle repetitive and time-consuming tasks can significantly cut down on labor costs and boost efficiency. Here are some effective starting points for automation in the billing process:
A survey commissioned by AKASA found that automating revenue cycle operations can reduce the cost to collect by as much as 20%. This is a significant saving for healthcare organizations operating on tight margins. Revenue cycle automation is not just about reducing costs. It also plays a crucial role in minimizing revenue leakage, improving patient satisfaction, and freeing up staff to focus on patient care.
At pMD®, our mission is to streamline and optimize the patient care episode and the revenue cycle. Through our advanced, end-to-end practice management and revenue cycle solutions, we can help practices consolidate vendors, reduce costs, streamline workflows, improve patient care and satisfaction, and collect their maximum reimbursement more quickly.
Not sure what a vendor could do to improve your behavioral health billing? Contact pMD® for a no-commitment financial impact analysis by our team of healthcare RCM experts free of charge!