When Does Revenue Cycle Management Typically Begin?

Curious why medical claims get denied or payments take forever to process? It all starts with the first steps of Revenue Cycle Management (RCM). From the moment a patient schedules an appointment, your practice’s revenue cycle is in motion—staff verify insurance, check coverage details, and outline payment responsibilities, all before the visit even happens.

But when these steps don’t go smoothly, they disrupt the rest of your revenue cycle, causing denied claims, delayed payments, and cash flow gaps that make it harder to operate. Understanding this first stage of RCM is vital for healthcare practices to reduce delays and prevent lost revenue. 

Learn what it involves, ways to optimize it, and how medical practice funding from Chello can help cover expenses and maintain stability if cash flow gaps happen.

What Is Revenue Cycle Management?

Revenue Cycle Management is the financial backbone of a medical practice, guiding everything from patient appointments to billing, payments, and reimbursements. When managed well, it helps make sure providers get paid accurately and on time for the care they deliver.

Without a strong RCM system, practices can run into challenges like:

• Delayed insurance reimbursements that disrupt cash flow
• Unpaid patient balances that go unnoticed 
• Disorganized financial records that make revenue tracking difficult
• Budget shortfalls that strain day-to-day operations

RCM involves multiple steps, but the earliest ones, like patient registration and insurance verification, set the stage for everything that follows, from coding and claim submission to payment processing. When practices get these right, they reduce denials, speed up payments, and create a more predictable revenue stream.

When Does Revenue Cycle Management Begin?

RCM begins before a patient arrives, with a few critical steps that set the stage for straightforward claims and payments. Here’s a breakdown of what happens at this stage and why it matters later:

Early Step	What It Involves	Impact on RCM
Insurance Verification	Confirm active coverage, check policy details, and identify prior authorization needs.	Flag coverage issues early to prevent claim denials. Reduces rework and payment delays.
Patient Information Collection	Record demographics, insurance details, and contact information.	Prevents claim errors caused by incorrect data.Reduces time spent fixing billing mistakes.
Payment Responsibility Discussion	Review copays, deductibles, and expected out-of-pocket costs with patients.	Increases on-time payments by setting clear expectations.Lowers outstanding balances and disputes.

Handling these early tasks correctly helps prevent claim denials and payment delays. Optimizing RCM from the start makes the rest of the process more efficient.

How Practices Can Optimize the First Steps of RCM

Are avoidable mistakes slowing down payments? Use these tips to optimize the first steps of RCM and keep your revenue cycle running smoothly:

• Automate insurance verification. Use an electronic verification system to confirm active coverage, check for prior authorization requirements, and flag potential issues before the appointment.

• Train front-desk staff to collect accurate patient details. Implement a standardized intake process that includes double-checking insurance information, confirming demographics, and updating records at every visit.

• Use digital tools to provide cost estimates and collect payments upfront. Offer online patient portals or in-office estimations to give patients a clear breakdown of expected costs before their visit, allowing for upfront payments or payment plans.

• Verify coding accuracy before claims are submitted. Use claim scrubbing software or have trained staff review codes to catch errors before submission, reducing rejections and resubmissions.

These best practices help reduce delays and keep revenue consistent, but knowing how to handle cash flow gaps with a medical credit line helps maintain stability when reimbursements slow down.

Managing Cash Flow Challenges in RCM

The truth is that even with the best RCM processes, reimbursements can be slow, and patients don’t always pay on time. Medicaid takes an average of 14 to 29 days to process payments, while some private insurers can take up to 90 days if they flag a mistake or have questions about a claim. 

Meanwhile, your practice still needs to cover payroll, rent, and supply costs, or you may be planning for expansion or equipment upgrades.

Chello’s credit lines for medical practice provide a solution, offering quick access to funds so you can stay ahead of financial challenges. Our funding offers advantages such as:

• Fast approval. Apply online and get access to funds quickly without lengthy paperwork.

• Flexible credit amounts. Borrow only what your practice needs, whether it's a short-term gap or to invest in growth.

• Weekly repayments. Maintain financial stability with smaller, frequent payments that prevent large, unpredictable expenses.

• Cash flow insights. Chello’s 90-day cash flow predictions analyze past claims data, helping you anticipate revenue trends and plan ahead.

• Real-time reports. Monitor balances, upcoming payments, and available credit with up-to-date financial tracking.

Chello understands the cash flow challenges that medical practices face. A medical practice credit line from Chello helps you stay financially stable even when reimbursements are delayed.

Stay in Control of Your Cash Flow With Chello

Even with a well-managed revenue cycle, unpredictable payments from insurers and patients can make managing expenses more challenging. Whether you are covering daily costs or planning for growth, waiting on reimbursements shouldn’t hold you back. 

Chello’s medical practice credit lines give you fast access to funding designed for healthcare providers. Get started today—apply online, get approved quickly, and access the cash flow you need—without the stress of hold-ups in claims payouts.