What impact does patient engagement have on the revenue cycle?

Patient engagement plays a crucial role in enhancing the revenue cycle by fostering a better understanding of financial responsibilities among patients. When patients are actively engaged in their healthcare experience, they are more likely to communicate effectively with their providers about their treatment plans, costs, and payment options. This understanding can lead to higher rates of payment collection, as patients become aware of their financial obligations and are more prepared to make payments.

Furthermore, engaged patients tend to have greater satisfaction with their care, which can encourage timely payments and reduce the incidence of bad debt. By encouraging patients to take an active role in their healthcare, healthcare organizations can enhance financial performance through improved collections and reduced write-offs from bad debt. This ultimately strengthens the overall revenue cycle management process.

Higher patient engagement does not eliminate the need for coding and billing, nor does it result in decreased interactions with providers; rather, it complements these functions by ensuring that patients are informed and responsible regarding their financial commitments. Without significant patient engagement, revenue cycles can suffer due to misunderstandings about financial responsibilities, leading to lower collections and increased financial challenges for healthcare providers.