What aspect of revenue cycle management is closely related to the financial health of a practice?

Billing and collections are crucial aspects of revenue cycle management that directly influence the financial health of a practice. This area encompasses the processes involved in generating and collecting payments for services rendered. Effective billing practices ensure that charges are accurately captured, submitted promptly, and followed up appropriately to maximize collections.

When a practice implements strong billing and collections strategies, it can reduce the days in accounts receivable, minimize denials, and enhance cash flow. These factors are fundamental to maintaining the financial stability of the practice, as timely collections ensure that revenue is available to cover expenses, invest in resources, and provide quality patient care.

In contrast, while patient engagement strategies, staff training, and community outreach play important roles in a practice's overall success and can indirectly impact revenue, they do not directly affect the cash flow or financial operations as strongly as billing and collections do.