Revenue Cycle Management in medical billing refers to the financial process that healthcare facilities use to manage the administrative and clinical functions associated with claims processing, payment, and revenue generation. It encompasses the identification, management, and collection of patient service revenue, from the point of initial appointment or encounter with the healthcare system to the final payment of a balance.

The cycle includes several key steps: patient registration, insurance verification, service documentation, coding and billing, claims submission, payment collection, and statement processing. In essence, RCM is the backbone of healthcare facility operations, ensuring that they are compensated for the services provided.