Understanding the key statistics that drive laboratory revenue cycle management (RCM) is important for optimizing operational efficiency and achieving long-term financial stability. By utilizing data-driven insights, laboratories can identify potential bottlenecks, streamline billing processes, and reduce costly errors such as claim denials and payment delays. These metrics provide a clear roadmap for laboratories to enhance revenue streams, improve patient satisfaction through better payment solutions. Implementing targeted strategies based on these statistics ensures that laboratories not only maintain profitability but also thrive in a competitive industry. Here are 6 must known insights for your laboratory to improve efficiency.
1. 70% of the medical decisions rely on laboratory test results.
Our recommendation: Implement advanced laboratory management solutions to enhance precision and speed in testing processes, ensuring reliable outcomes and supporting better clinical decision-making.
2. An estimated 40,000 to 80,000 deaths are attributed to preventable diagnostic errors every year.
Our recommendation: Taking serious actions towards improved accuracy and diligence in the diagnostic process and implementing proper RCM solutions to improve efficiency.
3. Prior authorization program implementation has increased denial claims for inheritable genetic disorders by 70%.
Our recommendation: Streamline pre-authorization workflows and utilize advanced denial management strategies. Visit our latest blog to see how HealthRecon Connect is preparing for the year ahead.
4. Molecular claim denials rate floats around 27% and are among the highest denial rates across all laboratory segments.
Our recommendation: Adopt end-to-end revenue cycle management services, so laboratories can focus on providing top-quality patient care.
5. Medicare cuts of up to 15% for 800 laboratory tests expected in 2025 (Temporarily delayed by the congress).
Our recommendation: Manage RCM processes with a comprehensive solution and explore alternative revenue streams while optimizing existing revenue form.
6. 10-30% of Laboratory Claims are denied the first time after submission. This alarming factor leads to a significant loss in revenue.
Our recommendation: 90% of the denials are preventable. Implement a robust RCM solution process to prevent or mitigate denials during billing.
These six key insights can significantly enhance the financial performance of your laboratory. By addressing challenges such as claim denials, diagnostic errors and evolving reimbursement models, laboratories cannot only safeguard their revenue but also improve patient care and satisfaction. Implementing advanced RCM strategies and laboratory management solutions is essential for staying competitive in a rapidly changing healthcare landscape.
Start optimizing your revenue cycle with a complementary revenue audit and embark on our proven 90-day action plan to transform your RCM workflow with HealthRecon Connect!
Talk to us today for a complementary, no-obligation benchmark assessment and demo.
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Thamara Rajawardena
Manager- Marketing
HealthRecon Connect
