September 22, 2004
Healthcare financial executives and revenue cycle leaders have taken advantage of many opportunities to improve their organizations' revenue cycles, but there are many more opportunities that remain largely untapped, according to results of a new survey conducted by HFMA and funded by an educational grant from Stockamp & Associates, Inc.
Effective Improvement Efforts
Targeted projects and staff training top the list of strategies that respondents said were the most likely to have had a high, measurable impact on revenue cycle performance. When asked to share specific, successful projects, respondents were most likely to cite changes in structure (such as changing or adding a position or forming a committee); projects aimed at reducing denials and underpayments; improved accuracy and collection of comprehensive data in pre-access, access, or registration areas; increasing point-of-service collections; and providing staff in-service and training to increase competencies.
Future Focus Areas
In the future, respondents anticipate focusing much more on front-end processes and clinical/care areas.
Moving Beyond the Low-Hanging Fruit
The survey found that many patient financial services (PFS) leaders have captured the "low-hanging fruit" of the revenue cycle and thus see less opportunity for one-time cash flow and one-time income statement improvements. Instead, respondents see more opportunities in seeking annual, recurring improvements.
For example, financial executives and revenue cycle leaders may have succeeded in processing all of their old accounts, so what they should focus on now is working with clinical areas to make sure that they are capturing all appropriate charges. Charge capture is a recurring opportunity that can have a very positive impact upon the revenue cycle; however, it is often overlooked because financial leaders are more focused on one-time revenue cycle opportunities.
To delve deeper into improvement opportunities for the revenue cycle it is essential that chief financial officers and PFS leaders align their goals and strategies with those of clinical and operational areas of their organizations. This will require those in financial services to establish stronger relationships with operations and to create lasting synergies between operations and clinical areas.
SOURCE:
Strategies for Improving the Revenue Cycle: Industry Views, a white paper produced by HFMA, made possible by an educational grant from Stockamp & Associates, Inc.
Additional Resources
- Revenue Cycle: Comprehensive List of HFMA Products and Services
If you have questions or comments about HFMA Wants You to Know, contact editor Laura Noble.
HFMA Wants You to Know ISSN: 1540-0697. Volume III, Issue 20. Copyright 2004, Healthcare Financial Management Association. All rights reserved.