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Revenue cycle management (RCM) in senior living encompasses all financial processes from the initial inquiry to final payment collection. Unlike healthcare RCM, which focuses heavily on insurance claims, senior living RCM must balance private pay residents, insurance billing, Medicaid, and various ancillary services.
The cycle begins when a prospective resident or family makes their first inquiry. From that moment through move-in, care delivery, billing, payment collection, and potential collections, every touchpoint affects your community's financial health.
Accurate financial assessment during the inquiry phase prevents future collection issues. Communities must verify payment sources, understand insurance coverage for rehabilitation services, assess Medicaid eligibility timelines, and create clear resident agreements that outline all fees and payment terms.
Once a resident moves in, the billing cycle begins. Communities must track services provided, adjustments in care levels, ancillary charges, and ensure accurate coding for any insurance-billable services. Real-time tracking prevents revenue leakage from unbilled services.
Timely, accurate billing is critical. Monthly statements should be clear and detailed, with multiple payment options available. Automated billing reduces errors and accelerates cash flow, while integrated systems ensure charges from all departments are captured. Senior living billing software is how you achieve this efficiently.
Effective AR management requires systematic follow-up processes, clear escalation procedures, and early identification of payment issues. The average senior living community carries 30-45 days in AR, but best-in-class operators maintain under 30 days through proactive management.
Manual processes create bottlenecks and errors. When billing information lives in spreadsheets or disconnected systems, charges get missed, payment posting takes days instead of hours, and month-end close stretches into weeks. Staff spend time hunting down information instead of managing exceptions and building resident relationships. Assisted living financial software is a piece of your solution that’s needed to integrate with your billing software for enhanced efficiency and corporate visibility.
Technology plays a crucial role in modern revenue cycle management. Integrated systems that connect resident management with financial operations eliminate duplicate entry, provide real-time visibility into AR aging, automate routine tasks, and generate actionable reports.
Want to learn more about optimizing your revenue cycle? Reach out to solutions@blytheco.com to begin your journey with an ERP built for your industry. Blytheco’s top tier consulting team will walk with you every step of the way.
Sage Intacct Solutions Engineer
Todd has over two decades of experience in marketing, sales, presales, and professional services and held roles as Director of IT and CFO. Throughout his career, he successfully established and developed nine practices from the ground up. This experience equipped him with a proven track record of implementing and managing various accounting and ancillary software solutions, including Sage Intacct. He leverages his vast business and software background to lead companies to successful and efficient solutions.
