There is significant opportunity for providers and vendors in revenue cycle process improvement.

44% of US hospitals had their average payment period increase and 42% had days in net patient account receivables increase against running 4 year averages. Over 900 hospitals had increases in both categories. Keeping pace with the rapid evolving reimbursement environment is more import than ever.

CMS’ announced market basket increase for FY17 will be almost 2% lower than expected. Hospitals attesting for meaningful use and supplying quality data will see an increase of less than 1%.

Hospitals that have not attested will not be eligible for any market basket increases. CMS’ commitment to shifting reimbursement from volume to value continues as well. Within 24 months, 50% of Medicare reimbursements will be via an Alternative payment model. Another 40% will be linked to value.

These changes will only magnify existing revenue cycle issues that pre-date these changes.

Care to payment intervals have been escalating for years.

Average payment periods and days in net patient receivable are increasing across the board. Hospitals with more than 500 beds have seen average days in net patient receivable increase 2% each year.

Average payment periods have average a 5% increase the last three years.

Headwinds from payment model evolution and shifting reimbursement will challenge organizations to revise their processes and look for technologies to significantly reduce the care to payment interval. Our new Essentials Brief reviews how key stakeholders at hospitals are using Denial Management to improve their revenue cycle and what hospitals still need help.