What is Revenue Leakage in Healthcare & How to Reduce it?

 Revenue leakage usually is unforeseen and unrecognized loss of revenue in your hospital. Manual processing is one of the major contributors for revenue leakage in a hospital setting; for example, without hospital management system having patient’s medical records in papers would take time to locate patient’s record, retrieve the demographic and clinical data, analysing visit history, medical history, lab orders, prescriptions and so on.

Transcript

2. Revenue leakages pose a significant challenge for healthcare providers globally, including in India. Manual processing, patient no- shows, improper referral management, communication gaps, and lack of patient engagement contribute to these losses. Missed or erroneous inpatient services, unplanned discounts, unresolved medical claims, and underpayments from insurance companies are also common causes. Implementing a comprehensive hospital management system can streamline processes, analyze records, and mitigate revenue leakages. Introduction
3. Causes of Revenue Leakage in Healthcare Industry Not tracking department wise revenue No patient registration or insufficient patient registration data. Paper-based hospital record management Poor patient engagement Inefficient communication management Manual data and billing entries Not recording or Incorrect or inadequate of medical procedures Errors in insurance companies-providers agreements Not tracking and controlling hospital operating cost Unplanned purchases Not tracking assets and utilization Improper workforce management
4. Stop or reduce revenue leakage important as it can result in lost earnings in your healthcare business. Most of the revenue leakages are not noticed and it would impact your health of your hospital finances. One of the healthcare industry studies shows that approximately one to five percent revenue leakage from total earnings. Implement an Integrated and easy to use Hospital Management System
5. Ensure all relevant patient data is collected at the front desk Patient registration in the hospital management system should capture comprehensive data, including insurance details, contact details, referral details, personal information, emergency contacts, payer details, patient documentation management, and disability details. Accurate patient information enables better patient engagement, care management, and facilitates payment tracking to reduce revenue leakage.
6. Patient Engagement Functionalities in hospital management system Integrating communication management software with the hospital management system enhances patient engagement, improves care, and boosts revenue. Moving away from paper-based records, a robust patient registration system is crucial for documenting comprehensive patient data. Automated communication tools like SMS, WhatsApp, and email are essential for effective patient engagement. An advanced hospital management system should also include telemedicine capabilities for follow-up patient care.
7. Reduce No-show Patients by using Appointment Reminders Your hospital management system must have secured appointment reminders for those booked prior appointments. The reminders could be via emails, SMS or business WhatsApp. The reminders must be automatically sent with simple configuration in your hospital appointment management system. The appointments could be for outpatient care, lab or radiology orders, or to refill monthly prescriptions.
8. Define your Hospital Healthcare Process & Optimize them An efficient hospital management system optimizes the healthcare process, prevents revenue leakages, and increases ROI. It streamlines processes across departments, enabling real-time data access for timely patient engagement. Well-defined roles and training in the outpatient department improve patient flow and revenue. A comprehensive hospital management system supports healthcare processes, reduces operating costs, and enhances overall ROI by managing patient data and detecting potential revenue leakages.
9. Conduct Regular Audits & monitoring; Optimize Hospital Audit Processes Regular audits and monitoring in hospitals ensure regulatory compliance, staff efficiency, patient safety, and accurate billing processes, preventing financial losses. Hospital management systems help identify discrepancies in inventory or billing records for prompt corrective measures. Audits also help detect and prevent inconsistent or fraudulent activities, leading to better resource management and financial stability.
10. Create Structured Data to Ensure data integrity & Better Hospital Billing. A structured hospital management system database streamlines patient engagement and billing processes, ensuring efficient bill processing, verification, and validation. It prevents revenue leakages from incorrect bills or payments, saving both time and money for hospitals. Additionally, structured data enables better patient care through accurate records for performance tracking and outcome monitoring.
11. Train hospital staffs on billing, and documentation Proper training is crucial for hospital staff to deliver optimal patient care. A comprehensive hospital management system aids in training, including billing and documentation, preventing revenue losses through precise and timely invoicing. Effective training programs equip personnel with the expertise and efficiency required to process payments accurately.
12. Track health insurance denial management and underpayment Proper tracking and monitoring of health insurance denial management and underpayment are critical for hospitals to avoid revenue loss. Utilizing effective hospital management systems enables accurate claim processing and timely payment receipt, preventing revenue leakage. This approach saves time and ensures hospitals receive the full amount owed by insurance companies.
13. Review reports and dashboard Hospital management systems offer real-time insights through review reports and dashboards, enabling managers to monitor organizational performance effectively. These tools promptly identify potential revenue leaks and areas for improvement, ensuring a strong revenue stream and preventing losses. Additionally, they aid in informed decision- making for growth initiatives and marketing strategies, ultimately driving higher profitability.
14. Conclusion When your hospital is automated, taking all these measures can be incredibly simple. At the end of the day, a single screen may provide you with all the insights you need to eliminate leakage and manage your operations more effectively using Ezovion Hospital Management System. To learn more, please contact us or schedule a demo with one of our professionals.
15. Your Partner to Intelligent Healthcare