When it comes to revenue cycle management within a healthcare facility, it's especially beneficial to take advantage of data analytics. And with cash flows on the decline and profit margins being tighter than ever before, there's no time to waste. Let's take a closer look at the many benefits to be gained from data analytics in your revenue cycle management.
Reducing medical coverage denials
A patient comes in and receives $10,000 worth of medical care from your practice. You'll first turn the cost over to the patient's insurance company, but what if the insurance company denies coverage? Essentially, the patient will be on the hook for paying what is owed, however, there's a high likelihood that the patient won't pay, especially all up front. With data analytics, though, integrated into your revenue cycle management, you can easily pinpoint which insurance companies and patients tend to have denials and rejections. By reducing these denials, you can greatly improve your health care facility's cash flow cycles. More so, you can improve days in A/R, which increases overall profit levels. Additionally, when you receive any denial or rejection, you can use data analytics to determine why. You can then use what you learn to ensure you don't endure similar denials or rejections in the future.
Benchmark your data
One of the most valuable benefits of data analytics is that you can finally assess and benchmark your data. From clinical data to payment information, you can produce visually appealing reports, providing you with a full picture of the true health of your revenue cycle. By pinpointing the areas in which your revenue cycle can be improved, you can easily create and deploy appropriate remedies. When you notice a trend that leads to reduced profits, you can determine the root cause, which significantly simplifies fixing the problem.
Monitor all contracts
When was the last time that you went through and reviewed all of your contracts with vendors and suppliers? There's a good chance that you aren't even aware of all the contracts that your health care facility has. With data analytics, though, it's possible to review each contract and track them to ensure they are benefiting your revenue cycle. You very well may find that you are paying a contractor who no longer even services your health care facility. Even if it's only $25 a month, that's $300 for the year going to waste if the contractor doesn't service your facility anymore.
It's also with data analytics that you can renegotiate contracts. Take for instance that you discover through analytics that you no longer need your medical supply vendor to visit your office three times a week. Instead, one time a week with larger supply loads may be more efficient; it could even save you a considerable amount of money. By seeing trends within your vendor and supplier contracts, you can use the data to renegotiate, showing vendors why a renegotiation should take place.
Data analytics start with the right software program. By speaking with a company that specializes in data analytics, well versed with medical data domain and revenue cycle management, your health care facility can enjoy the many benefits discussed above. Even better is that the software program can usually be deployed in less than 24 hours, meaning you can take advantage of the benefits today.