Why is revenue cycle management critical to the financial performance of healthcare providers? Provide an example of how healthcare providers evaluate revenue cycle management performance.

Revenue valuation management
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A revenue cycle management system keeps a record of the patient care and makes the billing and collection cycles easier by registering and processing the payment that is to be made by the patient. This enables the health facility to keep track of its financial matters. It assists the staff of the healthcare in recording all the information required in claims processing for insurance purposes. Therefore, it prevents resubmission of claims due to either lack of information or incomplete information (Zelman, McCue, Glick & Dawsonera, 2009).
Revenue cycle management in healthcare reduces the duration between offering a service and receiving payment for it, as it interacts with other health IT systems, for instance, electronic health record systems and billing system. This ensures that the healthcare provider makes the most out of a short period of time. Revenue cycle management helps save on time. This is due to duties being performed automatically unlike previously where it was performed by employees who can be sluggish in doing their work. As a result, it ensures that the organization gets more revenue due to it being able to serve as many patients as possible (Penner, 2013).
A good example of how healthcare providers evaluate revenue cycle management (RCM) performance is when deciding whether to hire a vendor to handle RCM for your practice. The following should be taken into consideration in evaluating the candidates best-suited to offer RCM services.

Firstly, the healthcare provider should prioritize a vendor who has a reasonable price and also one who will provide the best of service. Secondly, it is important for the vendor to elaborate on how to solve problems and also provide success rate with former clients. Some vendors’ proposals may contain some reward for exceeding the laid down objectives and also penalties if the objectives are not achieved. The RCM companies should disclose where the call center employees are located, the hours that the call center operates, their language skills and mastery of the local language. Both parties should agree on the length of their contract to enable the practice to decide on whether it requires either a short-term or long-term contract. The practice should find out how it can terminate the contract if the vendor does not comply with the contract and the penalties to be imposed if the contract is violated (Zelman et al., 2009).
References
Penner, S. J. (2013). Economics and financial management for nurses and nurse leaders.
Zelman, W. N., McCue, M. J., Glick, N. D., & Dawsonera. (2009). Financial management of health care organizations: An introduction to fundamental tools, concepts, and applications. San Francisco, CA: Jossey-Bass.