How telehealth positively impacts healthcare revenue cycle management
With the COVID-19 pandemic came an unprecedented adoption of telehealth that continues to persist post pandemic. This rise of the telehealth industry is good news for healthcare revenue cycle management (RCM). Why? Telehealth is an in-demand service with high patient satisfaction rates. Medical practices that offer telehealth are well-positioned for long-term success. Here are six reasons that describe how telehealth improves revenue:
1. Telehealth increases patient volumes. With telehealth, physicians can reach patients in remote and underserved areas as well as patients without access to transportation or those whose schedules do not permit flexibility to attend doctor’s appointments. This provides countless possibilities to draw new patients into the medical practice. All of this translates to more appointments and increased revenue.
2. Telehealth improves patient loyalty. Equally as important as attracting new patients is retaining the ones you already have. Telehealth supports this by providing convenience and flexibility. It eliminates the need for patients to travel, and it reduces wait times, both of which help physicians retain patients in an increasingly competitive marketplace.
3. Telehealth reduces overhead costs. When a physician offers a combination of telehealth and in-person appointments, they may be able to decrease the need for physical office space. They may even be able to create an additional revenue stream by subletting their office on days when they’re not there. Similarly, there may also be savings associated with decreased utilities and other expenses associated with in-person medical visits.
When a physician offers telehealth and no in-person appointments, some of these overhead costs may be eliminated entirely. Using telehealth can—and should—be part of a larger strategy to cut costs that includes automating data entry and scheduling, leveraging technology and analytics, negotiating more favorable payer contracts, and considering outsource RCM partnerships.
4. Telehealth may promote higher value-based care payments. Telehealth may contribute to improved patient outcomes and access, lower costs, and increased patient satisfaction—all of which bodes well under value-based payment programs. For example, physicians may be able to use telehealth for transitional care management to prevent readmissions. If they use telehealth for advance care planning, they may be able to satisfy some of their reporting requirements for CMS’ Merit-based Incentive Payment System (MIPS). The same is true if they use telehealth to expand practice access (an improvement activity under MIPS). There are many additional opportunities for telehealth revenue generation under value-based care models. It’s worth taking the time to explore your options.
5. Telehealth may reduce last-minute cancellations and no shows. The flexibility and convenience of telehealth may help keep appointment slots full and ensure appointments are completed, meaning there are no gaps of unbillable time in the schedule.
6. Telehealth supports efficient patient payments. With integrated payment portals in the telehealth industry, physicians can collect copayments and outstanding balances before or immediately after telehealth visits, thus reducing back-end patient collection challenges and streamlining RCM workflows.
Telehealth compliance, audits are important
Telehealth promotes financial sustainability and growth only when physicians and RCM staff understand and comply with telehealth policy changes after the COVID-19 public health emergency as well as payer-specific medical coding rules and documentation requirements for telehealth. It’s also important to audit any telehealth services you provide to ensure revenue integrity. Using the right place of service codes and modifiers for telehealth-covered services is paramount.
Looking ahead
The digital health market, including the telehealth industry, is set to be worth $286.22 billion by 2030. Factors driving this growth? An increasing number of patients with chronic conditions, an increase in the geriatric population, and a growing trend toward home healthcare. There’s also a technological angle with advances in healthcare products and increased penetration of mobile phones.
Many medical practices already know how telehealth improves revenue. Those that haven’t yet embraced fully embraced the technology should explore potential telehealth revenue generation opportunities. Leveraging the right technology integration as part of your overall RCM strategy is key. Learn how edgeMED can help and be sure to check the Healthy Snacks blog for more expert insights, best practices and industry trends.
