According to an April New York Times article, healthcare spending in the United States has slowed significantly over the past few years. Numbers from the Centers for Medicare and Medicaid Services (CMS) show that in 2009 and 2010 total nationwide spending grew less than 4 percent per year, representing the slowest annual growth in more than 50 years. Although this slowdown may not seem unexpected given the current state of the economy, it has been sharper than experts anticipated, pointing to the possibility that factors other than the recent recession also affect spending. This is significant because it may mean the slowdown will continue even as the economy picks up. However, there is good news and bad news with flattened spending.

On the positive side, it could lessen the impact of healthcare costs on household budgets and ultimately strengthen the country’s fiscal health. For example, if Medicare spending grows only 1 percentage point faster than the total economy, the long-term deficit for the United States could fall by more than 33%. On the other hand, reduced spending means less income for hospitals, physician practices and other healthcare organizations. In a time when cost margins are already tight, lessening income could be potentially damaging for many organizations.

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More than ever before, practices must place greater focus on managing the revenue cycle process because of a tight economy and strict industry guidelines. With many imminent industry changes, such as ICD-10, it is important for every medical practice to implement specific processes to ensure their revenue cycle is not negatively impacted.

Nationally recognized revenue cycle expert Elizabeth Woodcock, MBA, FACMPE, CPC, has developed a seven step system that any practice can use to help redefine and manage revenue cycle efficiency. These steps include:

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The concept of performance measurement isn’t new, but it’s gaining more attention as the healthcare field strives to improve both quality and efficiency. Your practice’s revenue cycle is a prime target for performance measurement because it can help you understand your financial strengths and weaknesses, and design effective improvement strategies.

But where do you begin? Over the years, I have found it particularly helpful to share four key metrics with staff members. You and your staff should not only be aware of these essential benchmarks, but regularly review and use them to structure improvement activities:

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With reimbursements declining and costs increasing, managing your practice’s revenue cycle has never been more challenging or important. Over the last few years, practices have realized that they cannot afford to ignore the state of the economy or the pressures being placed on profits. Although the economy is showing signs of recovery, there are still other challenges that will impact revenue in the near future, including proposed Medicare cuts, the transition to ICD-10 and increased patient responsibility.

Adding to these trends is the pressure of implementing or upgrading an electronic health record (EHR) in order to achieve the government’s new requirements for ‘meaningful use.’ In the face of these pressures, now is an opportune time to re-examine your practice’s operational processes, especially your revenue cycle. You just may find that reengineering the revenue cycle will be the key to surviving – and thriving – in these turbulent times.

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Just as people need blood circulating through their veins, so physician practices need revenue flowing through their bank accounts.

That requires many things: Confirming that patients are covered for the care providers deliver, submitting accurate claims that trigger prompt payment, posting payments quickly so resources are immediately available, ensuring no cash is left on the table.

Perhaps the most effective approach to managing all aspects of the revenue cycle is incorporating a Web-based application to manage receivables for improved cash flow and increased profitability. Read More ›

Human beings continually search for better, easier ways to get things done – in the field of healthcare and elsewhere. We’ve been advancing the concept of medical technology since the first x-ray was recognized as a useful diagnostic tool. From the simple electronic blood pressure cuffs now found in almost any grocery store to complex robotic arms used by skilled surgeons, we continue to see an explosion in medical automation.

And the upsurge isn’t limited to clinically-focused technology. It also encompasses software and systems that streamline front- and back-end operations, improving both patient flow and revenue cycle management. Read More ›