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What Is Revenue Cycle Management?


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. 

Understanding the Revenue Cycle Management Process

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:

StageWhat It InvolvesPotential Setbacks
Patient RegistrationCollecting basic details like name, contact information, and insurance coverage.- Missing or incorrect insurance details

- Incomplete patient demographic information
Insurance VerificationChecking if the patient’s insurance will cover the planned services.- Services denied due to unverified coverage

- Delays in verifying insurance before appointments
Service DocumentationRecording treatments and diagnoses with proper codes for billing.- Incorrect procedure or diagnosis codes

- Missing treatment details in patient records
Claim SubmissionSending insurance claims with the correct codes and documents.- Rejected claims due to errors in coding

- Late submissions delaying reimbursements
Payment PostingApplying payments from insurance or patients to their accounts.- Payments applied to the wrong accounts

- Unrecorded underpayments from insurance
Patient CollectionsFollowing up with patients for any remaining balances after insurance.- Unpaid balances from unclear bills

- Delays in payment due to poor follow-up

Benefits of Efficient RCM at Your Practice

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: 

  • Faster payments. Accurate insurance verification and clean claims submission prevent reimbursement delays. Verify patient details and insurance coverage with digital EMR software before services to reduce errors that slow down cash flow.
  • Reduced time spent on corrections. Identifying errors early saves valuable time by avoiding rejected claims. Provide staff with training on accurate coding and documentation and implement regular audits to catch potential issues before submission.
  • Recovered revenue. Denied claims left unresolved result in financial losses, with resubmissions costing up to $118 each. Establish a clear process to promptly monitor and appeal denied claims, helping your practice secure essential revenue.
  • More time for patient care. Simplifying RCM processes allows staff to shift their focus from paperwork to patient support. Use user-friendly billing software to reduce manual tasks and free up your team for more critical work.

Backup Medical Funding: A Support System for Your RCM

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:

  • Fast and flexible funding. Approvals in as little as 24 hours let you address your financial needs quickly. Use these funds to upgrade technology, hire staff, or cover unexpected expenses without delay.
  • Real-time financial insights. Chello’s platform connects to your claims and payment systems for up-to-date cash flow tracking. Our 90-day cash flow projector helps you plan ahead and identify when extra funds might be needed during slower periods.
  • Tailored solutions for medical practices. Chello offers lines of credit for daily expenses and credit lines for larger investments. Flexible underwriting ensures funding is based on your practice’s unique needs, not just receivables.
  • Transparent and simple process. With a clear monthly subscription model and an easy online application, funding is hassle-free. Just sign up online, choose a loan amount up to $500,000, and get access to your funds within a few days.

Strengthen Your Revenue Cycle With Chello

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.


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