How is COVID-19 Impacting the Healthcare Revenue Cycle?

As we all know, countries all around the world are encouraging their population to remain indoors during this threat of COVID-19. However, the responsibility of healthcare providers has increased more than ever due to the outbreak of this deadly virus.

Due to this increased activity, a significant impact is evident in the healthcare revenue cycle and the finances of the providers.

As per reports of the World Health Organization, the confirmed cases of the virus are rising daily around the world, and the number of mortality rates reported daily continues to increase. 

The virus outbreak has also been concerning for the healthcare providers as they have to be in front of it all as they test and treat the patients. 

Impact of COVID-19 on revenue cycles

The stock market has been at an all-time low per reports from the Wall Street Journal. The plummeting of stocks is attributed to the global pandemic, and the healthcare providers are no exception to this fall. 

A lot of profit hospital systems are facing challenges as their stock prices decrease. This does not imply that non-profit hospital systems are in the clear. They are also at risk of receiving these same financial challenges that are arising due to the virus.

A significant number of cases of COVID-19 need intensive services, which is increasing the pressure on healthcare systems due to limited resources. There is expected to be a drastic difference between demand and resources as the number of patients continues to spike.

A lot of hospitals are already low on essential medical supplies, including ventilators, masks, and personal protective equipment. To make sure that providers get optimal help during this time, the government and payers are trying to reduce the obstacles in the revenue cycles.

Billing and coding

It is vital to make sure that the billing office continues to run during this outbreak. Only then can the hospitals remain open for infected individuals. 

However, this is easier said than done. CMS is playing a pivotal role in ensuring that providers are able to handle billing and coding related to COVID-19.  Two common healthcare procedure coding systems have been released for the ease of the laboratories. 

AMA has also announced that the development of CPT code is being fast-tracked to report new coronavirus testing. Guidance has also been released by CMS regarding reimbursement for treating patients of the virus. 

Financial responsibility

Various reports have come into light regarding patients having to bear expensive medical bills as they seek to care for symptoms of the virus. Healthcare providers are trying to come up with collection strategies, but this is not an easy feat in the current times.

Payers understand the problems that are rising due to this and are trying hard to ensure that things become easier for all parties concerned. AHIP is trying to reduce the costs as much as possible. 

It has become the need of time that hospitals take adequate measures to deal with the depleting resources while at the same time dealing with financial stress that is bound to come their way.

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