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Why the Healthcare Revenue Cycle Management is Important?

The healthcare revenue management market has been growing in the last few years.

The prediction is that the market would grow up to $104 billion worldwide by the year 2025. ResearchandMarket.com has published most of the key facts that have been mentioned.

There are many driving forces for growth. The advancement in technology and the increase in healthcare spending are worth mentioning.

What is causing the increase?

Increased healthcare spending and technological advancement are the key factors for growth.

But there are other reasons for the growth of the market. Government spending, in the healthcare system, has increased. This has been driving the growth of the market too. The third-party revenue cycle is also encouraged for adoption.

Reports have found that medical claims processing is also influencing revenue management. It is especially because the hospitals want to maintain quality billing of insurance.

Quality billing ensures the best financial results. The management needs to have the know-how of accounts receivable. This saves the costs of all the revenue that the hospital loses because of claim denials and failure.

All these factors are aiding in the growth of the market. This is an opportunity for revenue management services to grow in the healthcare industry.

What would be the effect?

Outsourcing a function is necessary when you to do your work in a more efficient and less expensive way.

Revenue cycle management can be difficult for a health system. This is why healthcare organizations might find it easier to find a third party to help.

To make this decision, a hospital can look at their key performance indicators or KPIs. KPIs can help to understand if their system can fit a third party.

Most hospitals get help from a third party because of their billing errors. These errors can occur because of coding mistakes, and lacking specificity. Missing the filing deadlines and not verifying the insurance are some of the reasons. They might also occur due to not filling the claims completely.

However, the market is optimistic about its growth. The optimism stems from the long relationship between the third-party and the hospitals. Keep in mind the revenue management providers have helped prevent almost 90% of the claim denials.

The health care institutions are receptive of the system. Moreover, it’s important to mention that more than 25% of the hospitals in the USA do not use revenue cycle management services. These hospitals lack awareness and information on the benefits of revenue management services.

Even then, the percentage of hospitals that do not have these services has gone down. Almost 35% of hospitals in America were unaware of these services. A 2012 report also mentioned that hospitals lacked the technology and service also.

Despite these stats, the rise of awareness about technology and revenue management services has increased, and because of this more healthcare institutes are adopting the system. This will not only decrease the cost of the operation but would make it more efficient.