What aspect of healthcare does revenue cycle management (RCM) focus on?

Revenue cycle management (RCM) primarily focuses on the financial processes involved in healthcare institutions, specifically the management of accounts receivable and payable. This includes the entire lifecycle of a patient’s financial interaction with healthcare services, starting from the initial patient registration, through the insurance process, billing, and ultimately, the collection of payments.

By effectively managing accounts receivable and payable, RCM ensures that healthcare organizations can maintain their financial health. This encompasses tracking patient services rendered, verifying insurance coverage, processing claims, and following up on unpaid invoices. The ultimate goal of RCM is to maximize revenue while minimizing the time and cost associated with collecting payments, which is crucial for sustaining the operations of healthcare facilities and ensuring they can continue to provide quality care to patients.

While aspects like patient care quality, clinical trial coordination, and facility maintenance processes are vital for the overall functioning of healthcare organizations, they do not directly relate to the financial management processes that RCM addresses. Therefore, understanding RCM's focus on financial aspects gives a clearer picture of its role in healthcare management.