1-1 Discussion: Interrelationship Between the Revenue Cycle and Reimbursement

Interrelationship between the Revenue Cycle and Reimbursement
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Discussion
The revenue cycle involves all the necessary clinical and administrative functions that aid in capturing, managing and the collecting of the patient’s service revenue such as insurance in regard to the set rules. On the other hand, a reimbursement deal with the process of repaying the money that has been incurred as the expense of the service offered and therefore has a huge relationship with the revenue cycle since they work hand in hand resulting to the revenue cycle management (RCM) (Wright, 2017). The healthcare organizations generate revenue by treating patients and, in turn, getting paid for it by insurance companies covering the various patients or out-of-pocket money. Therefore, the record keeping department is responsible for capturing the patients information whereby coding of the particular diagnosis is done by a health practitioner (Colton & Davis, 2015). The information is thus send to the patient’s insurance company or billed under the patients agreement to pay cash. In turn, the insurance company is responsible for reimbursing the spend amount to the hospital through their financial department in order to cater for the expenses that were incurred by the patient. In an event whereby payments were not received, then the hospital would find it difficult to replace items such as medicine, pay its workers and ensure the maintenance of the facility. Therefore, the interrelationship between the revenue cycle and reimbursement is ins...