Every medical practice—whether optometry, pediatrics, or dermatology—shares a core mission: improving patients’ lives. However, achieving this mission takes more than clinical expertise; it depends on efficient revenue cycle management (RCM). RCM encompasses all financial processes, from patient registration to final payment, and is vital for ensuring the financial stability of your practice.
Ineffective RCM can lead to errors, delays, and disruptions that impact operations, making it challenging to care for patients or meet payroll. With inefficiencies costing up to 5% of net patient revenue, optimizing your RCM workflows is essential for avoiding setbacks and ensuring long-term stability.
Explore the steps involved in RCM, common challenges to watch for, and how medical practice funding from Chello supports your financial health.
Managing the financial side of a medical practice means following a clear set of steps, starting with patient registration and ending with payment. Here’s a breakdown of each stage of the RCM:
Stage | What It Involves | Potential Setbacks |
Patient Registration | Collecting basic details like name, contact information, and insurance coverage. | - Missing or incorrect insurance details - Incomplete patient demographic information |
Insurance Verification | Checking if the patient’s insurance will cover the planned services. | - Services denied due to unverified coverage - Delays in verifying insurance before appointments |
Service Documentation | Recording treatments and diagnoses with proper codes for billing. | - Incorrect procedure or diagnosis codes - Missing treatment details in patient records |
Claim Submission | Sending insurance claims with the correct codes and documents. | - Rejected claims due to errors in coding - Late submissions delaying reimbursements |
Payment Posting | Applying payments from insurance or patients to their accounts. | - Payments applied to the wrong accounts - Unrecorded underpayments from insurance |
Patient Collections | Following up with patients for any remaining balances after insurance. | - Unpaid balances from unclear bills - Delays in payment due to poor follow-up |
A recent survey found that 46% of healthcare providers cite missing or inaccurate data as a top reason for claim denials and 38% report that 10% or more of their claims are rejected. These denials don’t just delay payments—they can drain resources, increase workloads, and harm patient trust.
When you take the time to analyze and improve RMC at your practice, it can lead to improvements such as:
Improving coding accuracy, patient intake, and claim documentation reduces errors, but setbacks like delayed reimbursements or high no-show rates still happen. Many established practices use medical business credit lines to maintain stability and address urgent needs.
Chello takes the stress out of managing your practice’s finances. Unlike traditional lenders, Chello provides medical business credit lines for doctors with fast approvals, clear terms, and weekly repayment options. Here’s how Chello can keep your practice running smoothly:
Effective revenue cycle management is a cornerstone of a thriving medical practice. Addressing bottlenecks, improving processes, and leveraging financial solutions like accessible business credit lines for medical practices can help you achieve a more efficient and financially secure operation.
Whether you need short-term financial support or long-term growth opportunities, Chello can help. Start your application today and take the first step toward a more financially secure practice.