Financial Resource Management and Healthcare Reimbursement

Financial Resource Management and Healthcare Reimbursement
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Institution of Affiliation
Date
Financial Resource Management
Within the healthcare environment, many factors need to be considered when examining organizational finances and making financial decisions that will have both short- and long-term effects on an organization or medical practice. External agencies such as state government or the federal can set rate limits that influence revenues. Besides, there are external forces such as marketing structures and competition that affect the pricing of healthcare services. Managers, who oversee budgets and help to make financial decisions need to understand the forces shaping this environment; henceforth, the study focuses financial resource management and healthcare reimbursement in the healthcare sector.
Part A: The impact of coding and billing cycle processes on revenue cycles of a healthcare organization
The healthcare revenues cycles process embraces collecting payments, tracking claims, coding claims, determination of patient eligibility, following up denied claims and collecting co-pay (Burns, 2012). Therefore, the efficiency of coding and billing cycle processes in medical practice operations have critical impacts on financial performance. So as to manage the patient revenue cycle of a medical practice efficiently, the organization has to adopt and implement a proper coding and billing software or a practice management software. This software facilitates tracking of the claims; hence, enhancing management of health organization revenue cycles (Bucci, 2014). Additionally, proper coding and billing processes improve communication within staff members and alleviate poor workflows. This is because the processes make communication between office managers and physicians open, for instance, financial records become easily accessible and can successfully lessen complications in the revenue cycle. On the other hand, proper coding and billing processes enhance tracking claims and eligibility of a medical office; hence, enhancing smooth workflow in all sectors.
Part B: Impacts of Operating Revenue on the Revenue Cycle
Healthcare facilities usually record revenues once services rendered on credit are completed because they expect to bring together returns earned through these services (Burns, 2012). Credited services are not complete until an organization either gets the cash or term it as a bad debt. This plus the collection and recording of cash payment is termed as operating revenue. A proper revenue collection process includes an appropriate compliance and coding model, consolidated practice management, transparency, coding and compliance (Bucci, 2014). Measures that will ensure appropriate visibility of front-end process which affects revenue cycle directly. The principles exercise appropriate influence on issues regarding the revenue cycle procedures and processes not only within the coding and billing office but all across the broad and at times a bureaucratic organization.
Part C: Explain how to evaluate the financial condition of a healthcare organization?
Healthcare organizations provide a substantial amount of care to all vulnerable patients irrespective of whether they are assured or uninsu...