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What are some good revenue cycle management automation examples? How can they make a difference?
Many healthcare leaders, just like you, know there are big opportunities with technology to save time and work more efficiently. But who actually has the time to figure it all out and then implement it successfully? You know it can make your practice better—especially in the financial department—but where should you start?
It's a common dilemma these days. This is precisely why exploring revenue cycle management automation examples is so essential. Let's break this down and finally get you on the fast track to working smarter.
The Rise of Revenue Cycle Management Automation
Remember back when paper charts were still the standard practice (and for some of you, that wasn’t even that long ago)? Just as those paper charts were replaced by electronic systems (for the better), today it's more evident than ever that automating vital processes like your revenue cycle management can bring incredible efficiencies and significant financial gains. The biggest benefit by far is the boost it gives to staff morale.
By alleviating your team of monotonous, repetitive tasks, they are freed up to work in roles they enjoy - ones that fully utilize their education, training, and passions. However, this definitely does not happen overnight.
The global healthcare revenue cycle management market is expected to reach $246.40 billion by 2029, a staggering number clearly demonstrating its increasing relevance. This surge in market growth underscores not only the healthcare sector's adoption of sophisticated technologies but also reflects a global push for increased efficiency and minimized financial losses.
The transition toward electronic health records and a push toward digitalization paved the way for automation, making healthcare information more accessible. With accessible information, you've got opportunities for advanced solutions such as natural language processing, machine learning, and intelligent automation.
Why Revenue Cycle Management Matters - More Now Than Ever
In 2021, a forecast predicted the Revenue Cycle Management software industry was about to take off with an anticipated 10% annual growth rate from 2021 through 2025. This research demonstrates how rapidly the healthcare landscape is evolving - RCM software quickly transitioned from being "nice to have" to becoming an absolutely vital component of any efficient practice, billing department or hospital system.
But that doesn't mean there aren’t some holdouts. Just like paper charts still lurking in some dusty back rooms, some healthcare providers continue to depend on time-consuming and error-prone manual revenue cycle processes. These old methods are simply unsustainable and contribute to delays, errors, denials, and burnout.
By overlooking RCM automation, practices risk falling behind in today's digital-first environment, and their bottom line and patients will undoubtedly be the ones who suffer.
How Many Providers Still Rely on Manual Processes?
This is the real kicker. Shockingly, in 2020 it was found that a whopping 87% of providers were still stuck in the dark ages - using manual and paper-based systems for collections.
This is why more and more healthcare companies are turning to automation tools like Magical. Magical helps healthcare admin teams eliminate repetitive typing tasks like data entry and moving patient data between systems.
3 Benefits of Revenue Cycle Management Automation
Automating tasks within the revenue cycle offers tons of benefits. Think about it, wouldn't it be nice if your team had more time? What if you could reduce errors? Automation makes these things possible and more.
1. Saves tedious typing and copying and pasting
It can be hard to keep up with claim submissions when you have to type everything manually. Automating this process saves time and helps you get paid faster. This also reduces the chance of mistakes, meaning you're more likely to get paid the first time.
2. Keep better track of payments
Automated systems are also great at keeping track of patient payments. They send out bills on time and can even send reminders. This consistent follow-up makes it much more likely that patients will pay their bills.
3. More security
Although some people worry about security, automated systems are often more secure. They can store information safely, reducing the risk of fraud and identity theft. Plus, these systems free up your team to focus on more complex tasks.
You can dedicate your time to things like answering patient questions or resolving claim issues. One of the reasons why our customers love Magical is because it's safe and secure. Magical doesn't store any keystrokes or store any data typed into forms.
5 Real-World Revenue Cycle Management Automation Examples
Let's shift gears now and take a look at some stellar revenue cycle management automation examples currently in play and making big changes. These instances highlight the real-world applications of RCM automation across various aspects of a healthcare practice, billing department, and hospital system.
Remember, though, automation isn't simply a set-it-and-forget-it solution. To really maximize effectiveness, the human element must still play a vital role in overseeing, managing, and refining these automated processes:
1. Automated Patient Registration and Eligibility Verification
It seems almost impossible to believe that as of late 2023, nearly three-quarters of U.S. healthcare organizations have implemented at least some automation into their revenue cycles. And you know what? Their persistence paid off.
Many reported enjoying tangible improvements, including lower cost-to-collect, better overall productivity, and fewer errors on claims. This is one of the many benefits of using Magical - less typing and copying and pasting means fewer errors resulting from repetitive typing.
Have you taken that first step toward incorporating RCM automation at your organization yet? You may be surprised to learn how simple the transition can be with the right system.
Imagine a patient scheduling their appointment online and during the process, the system effortlessly verifies their insurance information. By integrating data between scheduling and eligibility platforms, practices can streamline this critical, and oftentimes frustrating, first step.
2. Streamlined Claims Processing and Management
Did you know that errors can be found in as much as 80% of medical bills submitted to insurance? Sadly, nearly a quarter of all healthcare dollars—a staggering $125 billion annually—are gobbled up by improper payments, according to CMS. This is where RPA automation and automation tools can help.
It takes just one glance at your revenue cycle to see how vitally important an efficient claims process is. Think back to a specific time when you’ve had to chase down a payment from an insurance carrier—such an irritating (and unnecessary) drain on your valuable resources.
With claims processing and management automation, software with integrated artificial intelligence steps in to alleviate the heavy lifting. But just how smart is AI anyway?
This clever software handles everything with ease. Think data entry, accurate claims coding (no more typos.), and document submission - all fully automated to ensure swift turnaround times.
This not only translates to a faster payment process but dramatically lessens denials and costly rejections. Plus, imagine not stressing out over government regulations.
3. Transforming Patient Billing and Collections
We are all busy. As much as we dislike being bombarded with automated payment reminders from the doctor's office, there are not enough hours in the day for staff to make these calls personally - let alone hunt down overdue balances. This is where technology truly excels.
RCM automation simplifies the collections process with secure payment gateways and easy-to-use platforms designed to send timely invoices (electronically) directly to the patient - either on a set schedule or as needed. But remember - personalized touches, even if automated, are vital. It all comes down to sending the correct messages to the right person at just the right time.
Incorporating multi-channel strategies like SMS or emails are excellent tools that also allow for seamless two-way communication with patients - right through their smartphones. Think: prompt responses to billing questions, online payment options (which most patients actually prefer anyway), and secure portals to download billing statements - 24/7, right when it is convenient for them - and you.
4. Effortless Denial Management and Resolution
Have you heard the saying, "an ounce of prevention is worth a pound of cure"? Well, this certainly rings true when we're discussing claim denials. It can take weeks—or even months—to iron out just a single denied claim and get this fully resolved with the correct payment finally received. It is crucial that the appeals process be tackled efficiently—and quickly.
Imagine though, not even having to deal with most denials. Just like in the scenario above, where claim errors are proactively corrected, automation streamlines this vital step in your revenue cycle by automatically flagging, challenging, and following through with denials.
5. AI-Powered Insights, Reporting, and Analytics
Data is truly king in today’s digital environment. In healthcare, this information offers healthcare providers, billers, and management an amazing array of powerful metrics designed to help evaluate how the entire revenue cycle is actually performing.
Using automated reports (generated either routinely or on demand), trends in payments, potential problem areas with claims processing, and valuable practice insights are available at your fingertips - 24/7. Just like a good friend, revenue cycle management systems help you make those smart choices—because ultimately, it comes down to your financial health.
FAQs About Revenue Cycle Management Automation Examples
How is AI Used in Revenue Cycle Management?
AI has the potential to dramatically transform the speed and accuracy of tasks in revenue cycle management, such as:
- Data entry.
- Claim submission.
- Insurance eligibility verification.
- Prior authorization.
- Billing.
- Payments.
- Patient collections.
- Reporting.
- Data analysis.
What Is Automation in the Revenue Cycle?
Revenue cycle management (RCM) automation involves incorporating software and technology to automate and optimize all the manual, repetitive administrative and financial tasks associated with the revenue cycle.
What Is RPA in Revenue Cycle?
In revenue cycle management (RCM), robotic process automation (RPA) utilizes software bots to automate tasks that have historically been handled manually.
What is revenue cycle management technology?
Revenue cycle management technology is software or a suite of applications that streamline the various aspects involved with processing patient claims. A fully integrated RCM system incorporates each phase of the process and begins when a patient schedules an appointment, continuing through claim submission to payment posting.
The Time For Automation in RCM Is Now
With these impressive revenue cycle management automation examples at your fingertips, it's easier than ever to envision how integrating intelligent technologies into your organization can be truly transformative for your medical billing process. By automating the laborious tasks that consume so much time and mental energy, not only will your bottom line reap huge rewards—but think of how happy and fulfilled your staff will be.
One of the tools you can add for your admin teams is Magical. Magical is used at more than 50,000 companies like Optum, Zoomcare, and Dignity Health to save 7 hours a week (on average) on their repetitive tasks. Try it for your team today!
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