Why is patient collections considered an important aspect of revenue cycle management?

Patient collections are considered a critical aspect of revenue cycle management primarily because they ensure that healthcare providers receive payment from patients for the services rendered. This aspect of revenue cycle management is vital for the financial health of healthcare organizations. When patients are able to pay, it directly impacts the organization's cash flow and overall financial stability.

Effective patient collections contribute to maintaining the viability of a healthcare provider, allowing them to invest in quality care, staffing, and infrastructure. Additionally, strong collections can help reduce outstanding Accounts Receivable, improving overall operational efficiency.

While boosting patient satisfaction scores can be a byproduct of efficient collections processes, the core importance lies in securing payment to sustain the organization. Scheduling future appointments and preventing service cancellations, although relevant to patient interactions, do not directly tie into the revenue generated from services already provided. Therefore, securing payments is the primary focus and necessity in revenue cycle management.