In a recent article for Healthcare Innovation, Keith Olenik shares how just like the DIY project, the days of internally building and managing RCM are mainly fading.
The “do it yourself” (DIY) phenomenon may work for home repair and improvement, but it doesn’t work anymore for revenue cycle management. The amount of knowledge required and the cost of tools and technology has become so excessive that small and mid-size hospitals and health systems are realizing that building their own revenue cycle management approach is as challenging as setting up their smart house to turn on lights, start the oven and even feed the dogs.
Optimization of financial performance – two options. As regulations and requirements increase and the pressure and urgency to optimize financial performance (especially in light of the revenue lost due to the COVID-19 pandemic), the C-suite recognizes RCM can no longer succeed without focused strategic attention and intention. It requires a leader and a staff with revenue cycle as their only focus to help ensure the entity has the sustained financial strength needed as market and payor dynamics continue to evolve rapidly.
Provider organizations have two options — one is to build a staff exclusively focused on RCM. The second option is to acquire these capabilities by working with a managed services partner that already has proven expertise, processes, trained personnel, technology, and best practices, etc. in RCM.