205 HIM 206 PRINCIPLE OF MANAGEMENT
6. Timely and accurate coding in the HIM department has an impact on what key revenue cycle performance metric?
a. accounts receivable aging
b. days in accounts receivable
c. claim denial rate
d. all of the above
7. Capitation, DRGs, per diems, and predefined fee schedules are all examples of:
a. reimbursement methods
b. accounting rate of return
d. chart of accounts
8. When a small physician practice organization reports AR days of 30.5 days:
a. the average payment turnaround is 30.5 days
b. average daily charges are $82,000 and total accounts receivables are $2.5 million.
c. outstanding accounts receivables are $2.5 million and average daily revenue is $82,000
d. all of the above
9. To prepare for a new CDI program, an HIM manager must include 4 new FTE coders in the department labor budget. At an average salary of $25 per hour, non productive hours of 15%, and anticipated 50% productivity reduction due to ICD-10, what is the projected annual salary expense?
10. A health care organization’s statement of revenue and expenses will show:
a. estimated accounts receivable
b. actual accounts receivable
c. accrued expenses
d. net income
Poor decisions might be made in revenue cycle management when there is insufficient information. Analytics are required for management choices. Performance outcomes are what determine financial sustainability, but managing billing processes depends on tracking the correct metrics.
Your revenue cycle’s performance will be evaluated based on 4 important parameters. Both the practice management and the doctor need to be aware of these 4 crucial parameters. Revenue Cycle Management Essay Discussion Paper
1. Day in Accounts Receivable Accounts receivable (A/R) is a metric used to determine how long it normally takes for the parties that provided a service to pay for it. It explains how long it typically takes to collect a day’s worth of charges. 2. The Proportion of A/R Longer Than 120 Days The ability of the practice to receive payment promptly is gauged by the percentage of accounts receivable (A/R) over 120 days. The percentage of the total current receivables that are receivables that are more than 120 days old. It is a great option even though there are other ageing indicators to consider.
3: Modified Collection Rate
The adjusted collection rate, commonly referred to as the net collection rate, gauges how successfully a practice is able to collect all acceptable reimbursement. According to the practice’s contractual responsibilities, this rate represents the percentage of reimbursement that was really received. This number illustrates the amount of revenue lost as a result of things like uncollectible bad debt, late reporting, and other extraneous changes.
4: Denial Rate
The percentage of claims that payers reject is known as the denial rate. As it shows the cash flow of a practice and the staff required to keep that cash flow, a low figure is preferred. Staff members do not need to pay clean, paid claims the same amount of attention as they do refused claims.
4 key metrics for measuring of revenue cycles are described above.
a. accounts receivable aging b. days in accounts receivable c. claim denial rate
Above mentioned all three options are the key metrics to measure revenue cycles .
So the correct answer is option d. All of the above
Go through the step 1 for explanation.
Answer➡️ option d. all of the above
Revenue Cycle Management Essay Discussion Paper