HCM 345 Final Project Milestone 1.docx - Final Project Milestone 1 1 HCM 345 \u2013 Final Project Milestone 1 Martha Williams Southern New Hampshire

HCM 345 Final Project Milestone 1.docx - Final Project...

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Final Project Milestone 1 1 HCM 345 – Final Project Milestone 1 Martha Williams Southern New Hampshire University
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Final Project Milestone 1 2 What is a revenue cycle? Why is it important in healthcare? The revenue cycle in healthcare is the financial process that facilities use to manage the administrative and clinical functions associated with claims processing, payment, and revenue generation. The process encompasses the identification, management, and collection of patient service revenue. (LaPointe, 2012-2020) If a healthcare provider or facility does not have a revenue cycle, they will have a hard time keeping patients and their doors open. Overall, the revenue cycle is there to help providers and facilities get paid for the good and services that they provide in a timely and accurate fashion. Healthcare reimbursement can seem quite complicated. This is true since the government rules surrounding the government payers changes frequently, sometimes even day to day. In most cases, payment is received after medical services are provided, which is why it is called reimbursement. Health insurance usually have contracts with medical facilities and medical practices. In these cases, there are certain payments that the providers agree to accept as payment. However, that payment can change if the provider or facility is outside the health insurance network. The question arises, “what happens when a healthcare provider does not get paid? Or has trouble receiving payment?” There is a trickle-down effect. If a provider is not paid, the provider may bill the patient even if they have health insurance. This creates a problem since the health insurance is the one who should be paying for the services. Another issue that may arise is called “balanced billing.” Balanced billing means the provider has chosen to bill the patient additional amounts that may be beyond the copays or coinsurances that a patient owes with insurance. This practice is considered illegal and should be reported when discovered. The sad part is that many patients end up paying these charges even though they are not responsible for them. It is
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Final Project Milestone 1 3 important that patients look over their bills and statements from insurance so that they are aware of what providers are charging and why. Yet another issue in reimbursement occurs when patients are not able to pay the copays, coinsurances or member responsibility for services provided. Copays are generally collected at time of service whereas coinsurance is billed to the patient once the health insurance is billed. A good example of this would be when a patient goes to the emergency room. Most health insurances have a copay that is due when visiting the emergency room. This copay would be paid before leaving the emergency room and is not billed to the patient. If payments are not received from patients, the facilities and healthcare providers would not be able to function. These copays, coinsurances and member responsibilities are what help the providers and facilities pay their daily costs.
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