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Revenue integrity webcast series: Part 3 recap


Our third installment in our health care industry Revenue integrity webcast series focuses on revenue cycle transformation.

Key takeaways

Implementation of a working capital enhancement model is key to transforming an organization’s current revenue cycle. This robust model focuses on system inventories, accounts receivable and accounts payable. Strategic components of this model include:

  • Building an effective cash management culture, which includes an enterprise-wide approach to achieve optimal results
  • Adopting key performance indicators with defined metrics for working capital and cash management
  • Utilizing technology to shorten the cash conversion cycle and improve the effectiveness of cash management
  • Optimizing the hospital or physician practice revenue cycle functions by improving the effectiveness by reducing error rates on claim production as well as scheduling regular insurance and private pay collection contacts
  • Making cash management visible with cash flow reporting to actively track, monitor, forecast and report cash enterprise-wide
  • Matching funding to the organization’s short- and long-term cash flow obligations

While no health care organization intends to adopt weak revenue cycle or accounts receivable policies, lack of planning, poor enforcement or a failure to focus on the function can result in unintended consequences. These often arise when hospitals and physician practices make the following mistakes:

  • Fail to follow-up adequately with insurance carriers and patients in a timely manner when payment is due or past due
  • Allow clinical leaders and physicians to override credit and collection policies; the result is revenue leakage from bad debt credit risks
  • Neglect to provide revenue cycle management and staff appropriate education and training on how to deal with changes in the regulatory, payor and patient reimbursement environment
  • Fail to give sufficient attention to the accuracy and completeness of claims and reimbursement terms
  • Allocate cash payments and adjustments incorrectly, making it harder to determine which payments are outstanding and the net realizable value of the hospital’s accounts receivable balance

Questions? Contact us for more information.

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