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Dec 6, 2023

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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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