Considering RCM? Real Cost of Preserving the Status Quo
August 1, 2018Many of today’s laboratories and diagnostic providers are running on relatively slim profit margins. This is due in part to revenue compression caused by, among other factors, lower fee schedules dictated by the Protecting Access to Medicare Act (PAMA), which came into effect in early 2018. This loss of revenue can lead a laboratory leadership team to want to defer investments as a way to protect profits. I believe this is a mistake when the investment being considered is in technology to optimize revenue cycle management (RCM) and thus increase reimbursements.
When a diagnostic laboratory is weighing whether or not to invest in laboratory information system, it’s important to understand the true cost of accepting and maintaining the status quo, especially when deciding on RCM. Frankly, doing nothing has very tangible opportunity costs and business risks associated with it, including:
At its core, revenue cycle management is about getting payors clean, trackable claims that are submitted and reimbursed quickly. Without a modern RCM system, it is so easy for a system to become out of date. To maximize your eligible reimbursements, you need a highly automated revenue cycle management solution that maximizes efficiency, optimizes cash collection, and increases financial integrity. Frankly, most systems just cannot do this.
As a result, deferring or choosing not to upgrade your RCM system leaves you vulnerable to serious business and compliance risks and actively prevents you from improving your operational and financial performance.
Even if your organization is operating on a razor-thin profit margin, can you afford not to optimize your revenue cycle management? In almost all cases the investment more than pay for itself in improved cash collections alone.
To learn more details about the true cost of maintaining the status quo, download the XiFin White Paper “The Cost of Preserving the Status Quo”.