Healthcare Revenue Cycle Essay

Just like any other business that keeps track of claims for payments the health care industry also has a system of their own called The revenue cycle. The revenue cycle manages claims processing, payment and revenue generation. Meaning the process includes keeping track of claims and making sure payments are collected and denied claims are addressed in an appropriate manner. In present times health care industry is a very complicated in terms of managing the services provided. A physician must document every single detail when seeing a patient. The documentation serves are proof that services need to be charged. The reason behind this is to limit fraud that can occur and making sure that there is no waste of health care resources.
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The typical step usually involves registration and it’s a simple process of knowing who you are. The registration process is a process of collecting Basic information such as Insurance verification, including patient’s health plan identification number, the amount due from patient for deductible or copay and finally financial counseling for patients who are self-pay. Registration is crucial for revenue cycle as the hospital. According to American hospital association 60 percent of hospitals In the United States lose money providing patient care “While that percentage might seem high, it’s even more shocking when paired with the statistic that healthcare providers lose $60 billion a year due to registration errors alone.” (Woodhead). Hence the process of registration is very crucial for the revenue cycle as the staff must obtain accurate information as all the information collected leads to the creation of medical record which must be accurate to provide the best medical service as possible. Accuracy is an important factor as one mistake could cause the hospital to bill the patient with false