Health Revenue Cycle Management
Health revenue cycle management is one of the hot topics of discussion these days, and it probably will not be going away anytime soon. The issue of health care revolves mostly around the exorbitant costs that can quickly pile up with a simple hospital visit. Have you ever wondered why our natural process of sustainability, otherwise known as giving birth, costs so much? Where would the world be if we protested the costs and stopped having babies? In 2005, the average cost of having a baby in the hospital in America was between $ 5,000 and $ 10,000. These numbers can easily sky rocket if you have a premature baby, have a Cesarean section, or any other complications with the birth. Hopefully you have a good health insurance policy!
Innovators within the health care industry are trying to come up with ways to lower medical costs all around. Most providers understand with increased medical intervention allowing people to live longer that medical costs for treating patients will not be reduced anytime soon. One possible source of significant cost savings might be from reducing paperwork and redundancy.
In 2003, the United States outlaid $ 1.3 billion dollars for health care. Thirty-one percent of that amount was spent on administrative paperwork. Perhaps you did not think that the medical paperwork could accumulate such costs. The majority of the paperwork deals with creating, submitting, analyzing and paying for your medical bills. All these administrative services are referred to as health revenue cycle management. These administrative processes are extremely inefficient. Companies collect redundant information about you and your medical history. Then, each receptionist at each clinic or hospital you go to has to manually enter that data into their computer. There is a problem with repetitive reworking of claims submissions, many of which may end up with several errors. Finally, the system of paying for medical services, with health insurance policies, Medicaid and Medicare are so complicated and costly that they force prices for procedures to increase.
As you can imagine, the inefficiencies with health revenue cycle management cause serious waste and expense in the health care industry. Many of the larger health systems are developing programs that will share data from one site to another, governments joining with health systems and private enterprise are developing health exchanges which will hold personal medical histories in the cloud, making them available to anyone with access to the cloud that has the patients permission. These systems are still be developed in hopes of pairing down paper costs and by sharing real time information provide a higher level of care for patients. IBM is using Watson to help analyze data from around the world to develop real time strategies for treating cancer patients that have exhausted all other options and treatments.
The big question is will these new innovations reduce costs, reduce the growth of costs or end up costing more?
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