A healthy revenue cycle is a must for any home health agency’s overall financial wellness. Ensure your revenue cycle is in the best possible shape with these four industry-proven revenue cycle management strategies.
#1: Verify eligibility on a bi-weekly basis
Inaccurate and incomplete eligibility checks can have detrimental effects on an agency’s revenue cycle health. When verifying eligibility, intake personnel are notified of variances in coverage and in demographic information. Claims submitted with incorrect data can account for a large percentage of an agency’s outstanding revenue. Reducing low-level rejections is crucial to an agency’s financial health.
#2: Document all revenue cycle processes
From insurance verification to cash posting, each part of the revenue cycle is important. Many of the tasks completed to achieve daily, weekly and monthly goals are multi-step and often very nuanced. It’s imperative to take time to document each staff member’s workflow from start to finish, especially if they are the sole owner of a process.
#3: Benchmark your agency
Benchmarking is an underutilized management function. When establishing a system of benchmarking within your agency, it is crucial to first define the objectives of your agency. Establish data within your agency for benchmarking and develop different Performance Improvement Projects (PIPs) to both meet regulatory requirements and improve overall processes to ensure financial fitness.
#4: Review managed care contracts & relationships
As managed care companies increase their penetration of Medicare/Medicaid, it is more important to develop sounds strategies for collaboration with these entities. With the correct approach and a healthy revenue cycle, contracting with managed care contracts can preserve margins and allow for growth through expanded coverage areas and referral sources.