Revenue Cycle 101

Hospitals could save $1 million to $10 million per institution per year if it did not take so much work to
get money from insurance companies, according to a survey of executives. Federal standards to exchange information electronically could largely eliminate these costs, and the banking industry is eager to
take on the task.

Industry

Like all of us, healthcare organizations are continually pursuing ways to reign in the increasing cost of doing business. At the same time, they are trying to increase revenue in order to expand their services, provide competitive salaries and benefits to their employees, and offer community services and programs to their patients that promote healthy living.

During every budget season, healthcare providers are faced with the question, “Where and how do we maximize our budget dollars?” Because they drive revenue, patient and clinical services always come out on top when it comes to allocating larger budgets. But ancillary departments are cost centers, too, and these areas are always under budget scrutiny—and always looking for cost-effective ways to maximize productivity.

Eradicating Paper EOB’s - Case Study
Client proposed implementing an automated EOB data capture and posting solution to accelerate remittance posting times while reducing associated costs. As part of the healthcare provider’s existing lockbox process, they were strategically positioned to link automated EOB processing with an image storage and accessibility package to offer an effective solution.

A detailed cost/benefit analysis projected that the upfront costs involved in automating the healthcare
provider’s system, including direct labor, data lift initiatives (technology and personnel needed); imaging and EOB workflow fees were more than offset by the opportunity costs involved. These savings included the direct and hidden costs of remittance posting delays; resource costs to resolve numerous customer complaints; as well as reductions to bottom-line profits from delayed funding.

Additionally, by using RKBs existing technology associates as part of the solution, the healthcare provider was able to eliminate the need for separate vendor contracts, billing and set up costs.

RKB found traditional scanning solutions unacceptable because they were too slow, too inaccurate and captured far too little data to be of use to a healthcare provider. It is for this reason we developed our own process and procedure for accepting and converting paper EOBs into rich data that can be worked and searched just like an electronic ERA. If you have concerns about what to do with your paper-based payers that can’t provide an ERA, don’t worry. We have your solution.

If your facility offers Patient-Friendly-Payment options, please post your free listing in the PFP national database for patients to locate you:
Patient-Friendly-Payments.com