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MEDS 1420-91:
Health Information Foundations
Name:
Alece Collins
Chapter 15:
Revenue Management and Reimbursement (30 points)
Associate Degree Competencies:
III.3
Calculate statistics for healthcare operations
IV. 2 Describe components of revenue cycle management and clinical documentation
improvement
VI.5 Utilize financial management processes
Instructions for Assignment
:
Read Chapter 15 and
Answer the Following Questions.
1.
A family of five is covered by multiple insurance companies:
●
Father Jones works for a private firm, has his primary health insurance (ABC) through work,
and secondary health insurance (XYZ) through his wife.
●
Mother Jones works for the state the Jones family resides in, has health insurance through
work, and insurance through her husband.
●
Sally Smith is covered under her Mother Jones health insurance policy until the age of 24.
●
Jeff Jones works at a bookstore and is covered under his father’s insurance policy.
●
Nikki Jones is covered under both of her father and mother’s policies
Determine the coordination of benefits for each family member for the visits listed in the table below
based on today’s date/year. The first visit is completed as an example: Father Jones has the flu and
goes to the doctor. Primary insurance is ABC and secondary is XYZ because his insurance is primary
for his visits.
Patient
Name
Family
Relationship
Date of
Birth
Type of
Insurance
Reason for
Visit
Order of
Insurance
Primary
Secondary
Explanation
Father
Jones
Father of the
Jones family
Works for a
private firm
5/14/1968
ABC
Flu
Primary
ABC
Secondary
XYZ
His insurance is
primary for his
visits
Mother
Jones
Mother of the
Jones family
Works for the
state
04/13/1973
XYZ
Annual
examination
Primary
XYZ
Secondary
ABC
Her insurance
is primary for
her visits
Sally
Smith
Daughter of
Mother Jones
from her first
marriage
1/1/1993
Covered
under
Mother’s XYZ
policy until the
age of 24
Annual
examination
Sally does
not have
any
insurance
on file
She would
have to pay out
pocket cost for
her visits
Jeff
Jones
Son of Father
Jones from
his first
marriage
12/25/2000
Covered
under Father’s
ABC policy
Books fell
on his head
at the
bookstore
Jeff would
file a
workers’
compensa
Workers’
compensation
is primary for
his visits
Works at
Brooks
Books
he works for
tion claim
and use
ABC as
secondary
Nikki
Jones
Daughter of
Father and
Mother Jones
4/15/2011
Covered
under both
Father’s ABC
and Mother’s
XYZ policies
Annual
examination
Primary
ABC
Secondary
XYZ
Her insurance
is primary for
her visits
2.
Community Medical Center’s charges, payments, and adjustments from third-party payers for the
month of July are represented in the table below.
Calculate the percentage of charges, payments, and adjustments for each third-party payer and enter
the percentages in the correct columns of the table.
Payer
Charges
Payments
Adjustment
Charges
Payments
Adjustments
BC/BS
$450,000
$360,000
$90,000
23%
31%
12%
Commercial
$250,000
$200,000
$50,000
13%
17%
6%
Medicaid*
$350,000
$75,000
$275,000
18%
6%
36%
Medicare
$750,000
$495,000
$255,000
36%
42%
33%
TRICARE*
$150,000
$50,000
$100,000
8%
4%
13%
Totals
$1,950,000
$1,180,000
$770,000
100%
100%
100%
* Managed care capitated payment for period
b.
Based on the percentages calculated in the charges column, identify the payer the
facility does the most business with and the payer it does the least business with.
●
Most business - Medicare
●
Least business - TRICARE
c.
Based on the percentages calculated in the payment column, identify the payers that
reimburse the facility the most and the least.
●
Most reimbursement - Medicare
●
Least reimbursement - TRICARE
3.
Describe the components of revenue cycle management and clinical documentation improvement
and identify the roles for HIM professionals in
the process.
●
Revenue cycle management (RCM) is the process of managing the financial aspects of a
healthcare organization, from patient registration and insurance verification to billing and
collections. Clinical documentation improvement (CDI) is the process of enhancing the
accuracy and completeness of patient records to ensure proper coding, billing, and quality
reporting. Health Information Management (HIM) professionals play a crucial role in RCM and
CDI processes. They are responsible for maintaining the integrity and confidentiality of patient
records, ensuring accurate coding and billing, and working with clinical staff to improve
documentation practices. Additionally, HIM professionals may also be involved in analyzing
data.
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