Recognizing the human element in the revenue cycle

Healthcare Financial Management, Annual, 2004 by Jackie T. Hodges

Revenue-cycle redesign is an evolution, not a revolution. Healthcare financial professionals in recent years have increasingly come to understand the revenue-cycle as an overarching process affecting every aspect of their organizations. The sheer scope of this process poses new challenges not the least of which is ensuring that the organization's people understand and are fully involved in the process. Effective revenue-cycle management requires a multifaceted, integrated approach that encompasses structure, systems, processes, and people. Too often, revenue-cycle leaders take a single-minded approach, involving either a reactive system, in which problems are corrected after they occur, or a quest for simple process "fixes" that will somehow prevent problems from occurring in the first place. With such an approach, decision-making can become bogged down with bureaucratic processes to gain approvals.

Instead, revenue-cycle leaders should adopt a broad management philosophy that allows for fast action--one that recognizes the importance of having not only a well-designed process, but also staff who are committed to making that process work. If a hospital is to successfully make the transition from a reactive to a proactive approach, end users need to perceive the value of the organization's revenue-cycle measures and goals, and they must be willing to make full use of the structure, processes, and products required to achieve the agreed-upon goals.

Revenue-cycle leaders should keep in mind six key principles of effective revenue-cycle management:

* Lead from the front. Always strive to demonstrate visible leadership. Without such leadership, people will try to find their own way, resulting in lack of coordination and potential miscommunication.

* Leverage staff through technology. If people lack the tools they need to accomplish what is expected of them, they are likely to become frustrated, and morale will likely decline. Investing in the right technology can result in an immediate return on investment in the form of greater staff productivity.

* Emphasize process improvement, not people persecution. When seeking to improve processes, solicit your staff's cooperation and involvement in the effort. And do not seek to place blame for problems that you uncover. Rather, let your staff be partners in the improvement effort. Foster employees' desire to make a difference.

* Focus on the little things. Recognize even seemingly insignificant improvements. Small successes can lead to larger successes, and reap big rewards.

* Stay the course. Don't waver in your commitment to the vision, but keep realistic expectations of results. Constantly second-guessing decisions will undermine staff confidence in your leadership.

* Trust, but verify. Give staff the latitude they need to perform their duties. But don't assume problems will just go away. Track and refine your course continuously, using real-time analysis to identify causes of lost revenue and to reliably forecast your future.

The ability of revenue-cycle leaders to demonstrate value will depend on their ability to effectively manage people as well as systems. Acknowledging this point and incorporating it into your management approach will ensure your organization not only survives, but also thrives!

SIX PRINCIPLES OF EFFECTIVE REVENUE-CYCLE MANAGEMENT

* Lead from the Front.

* Leverage Staff through Technology.

* Emphasize Process Improvement, not People Persecution.

* Focus on the Little Things.

* Stay the Course.

* Trust, but Verify.

Jackie T. Hodges, MBA, RHIA, is president, Med-Data Management, Inc., Mandeville, La., and a member of HFMA's Louisiana Chapter.

Send your questions or comments to Jackie Hodges at jhodges@meddata-inc.com.