Five Tips for Healthcare RCM Improvement and Financial Recovery

According to Definitive Healthcare, hospital revenue losses stand as one of the biggest healthcare trends across the next year. Considering continued strategic recovery efforts across the industry, what can healthcare leaders do to boost finances?

Read on for Five Tips for Healthcare RCM Improvement and Financial Recovery

1. Get back to the basics – Healthcare facility leadership should focus on survival, maintenance, and growth — in that order. Organizations need to realistically acknowledge that they cannot jump from survival to growth mode overnight. Concentrate first on operational sustainability. Maintenance and profits (growth) will follow. Once the direction is set and started, business office and healthcare RCM teams should proactively identify common barriers that will pop up, and list targeted actions that will eliminate or minimize each one’s impact. The initial goal is getting business reignited, not returning “back to normal.”
2. Target beyond A/R – The priority for hospitals should be collecting past A/R for account services provided. By doing this, business office and RCM staff clear out the work backlog for when full operational stability sustains. Within this process, healthcare organizations should also determine their Top 10 claims denials and conduct a thorough root cause analysis. Denials often stem from missing information or inaccurate chart documentation, so ensure staff are properly re-trained to avoid repeat errors in the future. Follow up with tactics like chart audits and customized training for physicians on payer clinical documentation requirements.
3. Address claims holds  – A major aspect of A/R is resolving claims holds — an unavoidable result of ongoing resource strain. Look for continuous updates of CPT (Current Procedural Terminology) codes, diagnosis codes, and grouper logic for categorizing and identifying patient care for billing and insurance purposes. Once CMS approves these updates, software vendors scramble to distribute and deploy their system updates for that logic across healthcare facilities. The effectiveness of this quick transition rests on the combined efforts of hospital IT and RCM teams for filing claims, pre-testing updates, and working to understand how new rules and logic apply to their organizations. Health system business office and IT teams need to work jointly to get regulatory applications rolled out across facilities in alignment with new CPT code releases.
4. Strategize your plan of attack – By communicating with both IT and business office teams, leaders should be able to create a working document with a responsibility matrix. Conduct weekly meetings to address updates, including new billing requirements, changes in clinical documentation for billing, technology updates, summaries of adjustments in the local and national economies, along with new insurance coverage/payer requirements.
5. Utilize flexible support options – The combination of industry turbulence, operational strain, inflation, and related rising vendor and supply costs has pushed significant cost reduction efforts across health systems. With healthcare facilities struggling to maintain cash-on-hand, downsizing has ultimately been occurring across non-essential areas. On the IT front, hospitals should assess their support partners to ensure they thoroughly document their value and have multi-application expertise for flexibility. Look to agile programs like FlexSourcing, which drives down IT tickets over time to cut operational support costs.

 

The debt surge will continue to take a hold of the healthcare industry’s direction for years to come with no complete return to “normal.” With the delay of claims processing, which leads to a delay in payouts, this directly hinders immediate cash flow. By combining these five tips for Healthcare RCM improvement, hospital leadership can get facilities back on track with a nimble, viable approach.

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