The revenue cycle is defined as all administrative and clinical functions that contribute to the capture, management, and collection of patient service revenue In the most simplistic and basic terms, this is the entire life of a patient account from creation to payment
What is meant by the revenue cycle quizlet?
Revenue Cycle recurring set of business activities and related information processing operations associated with providing goods and services to customers and collecting cash in payment for those sales
What is the revenue cycle in business?
The revenue cycle is a recurring set of business activities and related information processing operations associated with providing goods and services to customers and collecting cash in payment for those sales Primary external exchange of information is with customers
What is revenue cycle in your own understanding?
The revenue cycle includes all the administrative and clinical functions that contribute to the capture, management and collection of patient service revenue, according to the Healthcare Financial Management Association (HFMA) Patient collections: Determining patient balances and collecting payments
What is meant by revenue cycle management?
Revenue cycle management (RCM) is the backbone of the healthcare industry It manages the providers’ finances and keeps them going daily—several organizations involved in the process to make it a success The role of medical billing services in the US and the front-desk staff is undeniable
What is the definition of revenue cycle management quizlet?
Definition of Revenue Cycle Management (RCM) is the supervision of all administrative and clinical functions that contribute to the capture, management and collection of patient service revenue
How is coinsurance defined quizlet?
Coinsurance A type of cost-sharing between the insurance provider and the policyholder After the deductible has been met, the insurance provider pays a certain percentage of the bill, and the policy holder pays the remaining percentage
What is a revenue cycle flowchart?
According to Vander Mey, the flowchart provides an end-to-end description of the revenue cycle, from first contact with the patient, through the payment process, and ending with underpayment/overpayment recovery The top half describes provider processes; the bottom half describes payer processes
What is revenue cycle in audit?
For the revenue cycle, the auditor examines the gross profit margin and the amount of growth that the company has experienced in one year If it is, this could indicate that the company is a credit risk and may have cash flow problems in the future
What is the example of revenue cycle?
Revenue Cycle of a Manufacturer In a manufacturing business, the revenue cycle flowchart begins with the finished product For example, if the JKL Corporation makes widgets and promotes those widgets through a sales staff, a salesperson may contact potential customers
What revenue means?
Revenue is the total amount of income generated by the sale of goods or services related to the company’s primary operations Revenue, also known as gross sales, is often referred to as the “top line” because it sits at the top of the income statement Income, or net income, is a company’s total earnings or profit
What is the revenue cycle Why is it important to manage the revenue cycle?
Managing revenue is essential for any business to ensure that incoming cash is sufficient to pay for outgoing expenditures Revenue cycle management (RCM) plays an important role in this, especially for hospital-based physician specialties, due to the complexities of billing and revenue collection
How does the revenue cycle work?
Revenue cycle starts with the appointment or hospital visit and ends when the provider or hospital gets paid fully for the services provided The seven steps of revenue cycle include preregistration, registration, charge capture, claim submission, remittance processing, insurance follow-up and patient collections
What is revenue cycle investopedia?
The revenue cycle is a term used in accounting and business that describes the journey of a product or service from its humble beginnings to its sale Companies that have a substantial lag between the sale of an item and receipt of payment find the revenue cycle especially useful
What is another name for revenue cycle management?
The same process is used for most insurance companies, whether they are private companies or government sponsored programs The entirety of this interaction is known as the billing cycle sometimes referred to as Revenue Cycle Management
How many phases are there in the revenue cycle?
Making process and technology improvements at each of the three key revenue cycle phases — pre-service, post-service and post-adjudication — can make a big difference in day-to-day operations
What are the metrics used during revenue cycle monitoring?
Common financial metrics used in the revenue cycle include net days in accounts receivable, discharged not final billed, and aging accounts receivable Tracking such metrics allow organizations to measure and monitor performance against set goals
What is a premium quizlet?
Premium The premium is the amount paid to an insurance agency for a health insurance policy The premium is often paid on a monthly basis
What is an ACO quizlet?
what is an ACO? groups of doctors, hospitals, and other health care providers, who come together voluntarily to give coordinated high quality care to their Medicare patients a program that helps a Medicare fee-for-service program providers become an ACO
What is an out of pocket maximum quizlet?
Out-of-pocket maximum/limit The most you have to pay for covered services in a plan year After you spend this amount on deductibles, copayments, and coinsurance, your health plan pays 100% of the costs of covered benefits Medical Payments
What is bioethics concerned with quizlet?
Bioethics is concerned with moral principles and decisions in the context of medical practice, policy, and research
Why is revenue cycle important in accounting?
Accounting Revenue cycles allow businesses to predict cash flow and track transactions at all stages Every revenue cycle stage also presents an opportunity to identify and correct billing errors, leading to greater overall accuracy
What is the revenue and receipts cycle?
The Sales and Collection Cycle, also known as the Revenue, Receivables, and Receipts (RRR) Cycle, is composed of various classes of transactions Companies allow and credit sales revenue, and debit cash and credit accounts receivable, respectively These are the recording of the sales and cash collection of the sale
What are the basic revenue cycle activities?
Four basic business activities are performed in the revenue cycle: sales order entry, shipping, billing, and cash collection
What are the assertions for revenue?
The primary relevant accounts receivable and revenue assertions are: Existence and occurrence Completeness Accuracy Valuation Cutoff
What is revenue audit?
A Revenue audit is where your tax returns are compared to your tax records This is the most common method of selecting a business or tax payer for audit Projects on business sectors – Revenue might focus on a particular business sector, trade or profession when choosing businesses or tax payers for audit
What are the 5 financial statement assertions?
The different financial statement assertions attested to by a company’s statement preparer include assertions of existence, completeness, rights and obligations, accuracy and valuation, and presentation and disclosure