When companies enter the collections process they

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When companies enter the collections process, they often times understand that this is the weakest part of the entire revenue cycle. They understand that billable revenue is an exact number that is fixed for the duration of the period. However, the amount a health care provider collects is a number that varies depending on each patient’s financial condition and how they prioritize their debt. If there are 3 expenses that a person has to weigh namely their mortgage, their car note, and their hospital bill, hospital bill will be the last priority. In cases such as these, companies are faced with waiting long periods for their collections to be paid, or they don’t receive them at all. Every company hopes to be paid in full within the first 30 days, but that doesn't happen all the time, depending on that particular patient’s financial health. Traditionally collections are documented every 30 days, from 30-360. “The more time that passes the less likely patients are to pay in full”. (Marshall, 2003) Due to the lack of collections over long periods of time, it is understandable why there is extensive pressure for medical practices to
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collect as soon as possible. After 60 days overdue a medical practice can send a notice every 10- days labeled URGENT MESSAGE, instructing them how to go on a payment plan or make some payment to their overdue balance. References Marshall, J., Stevens, K., (2003). Being A Medical Clerical Worker . Boston: Pearson-Prentice Hall. U.S. Department of Health and Human Services. (2007). Summary of HIPAA Privacy Rule, (Publication no. GAO-07-1172). Washington, DC: Revenue Cycle Management: Getting Paid
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The revenue cycle stage is finally completed either when an account is paid in full, or an account is written off the books and either sent to a collection agency , or charged off entirely. Each company and industry gets to set the rules on how to handle outstanding accounts receivables. It's important for companies to track their revenue cycle process for two reasons. One, it's how they can determine how profitable they are based on how much revenue they're generating, and two, they can track how well their cash if flowing and alter the processes for getting that cash in more quickly if necessary. billable revenue is invoiceable options conceived before the need for collections and is an asset, where collections is a rationalized asset. a medical office will always be hindered by such a disparity because the billable revenue is a known known, whereas the collections is a known unknown. Revenue Cycle 3. The Revenue Cycle The revenue cycle is a set of four business activities: Sales order entry, shipping, billing and cash collections. To each of  these activities there are related administrative organizational activities. It is all associated with providing the goods  and services of a company to their customers and collecting the payments for these sales. Information about the revenue cycle activities also flows to the other accounting cycles which are: the expenditure 
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When companies enter the collections process they often...

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