Describing Revenue Cycle Management in a nutshell, it is the procedure or process taken to assure that the business owner gets paid on time for the services or products sold.
Revenue Cycle Management system is very effective and useful to healthcare sectors, to get the bills paid promptly from the patient.
In the health care sector, the process begins the moment the patient calls to the hospital or clinic for an appointment and when the staffs capture patient's name, contact number, insurance details and more. This cycle will end when the balance becomes zero.
How do Revenue Cycle Management Benefits Business Owners?
Revenue cycle is the series of steps that begins the moment business acquires materials to make sales and continues till the transaction is closed. This aligns with the accounting process for accounts receivable.
This system is very beneficial to the small businesses that have limited cash flow, but want to manage revenue cycle precisely in order to ensure that the company receives all payments as planned without any delay.
When the revenue cycle is managed well, then it becomes potential and beneficial for both business owners and customers.
Increases the opportunity to Buy
One major benefit of revenue cycle management is, it impacts both company and customers, when there is a time delay between the times when customer receives the product and when he must remit the payment.
Without the help of revenue cycle, which includes credit provision, only the customers with enough cash on hand can make the purchase. This means, revenue cycle management is important to companies selling expensive goods and services; thereby customers can buy on credit or make use of insurance policies for paying.
The revenue cycle management in this aspect benefits, health care providers, automobile dealers, construction firms and many others.