Office Operations
Office operations are exceptionally critical. Therefore, individuals who deal with office finances should be extremely cautious (Baldwin, 1996). In this scenario, the office manager was reviewing the office’s profit and loss statement. “He discovered that there was a discrepancy between the stated revenue and the cash deposits. In fact, the office had booked $275,000 in revenue in that month. If this error is proved to be factual, then, the office cannot be able to meet its financial obligations based on the miscalculation”.
In most cases, medical bills fall under open accounts (Yalden, 2007). Therefore, this grants the office a certain period to recover the money lost. This proves that features of timely billing are closely correlated to the cash flow in medical offices. Nowadays, most bills are sent electronically to various insurance firms for payment. Additionally, the remainder of the bill is sent in hard copy. This cash flow process is time-consuming and labor intensive (Baldwin, 1996).
Research asserts that in order to avoid instances whereby errors occur in cash flow, every department in the hospital must record the charges in the computer system of the hospital in a timely manner (DeKaye, 1997). The most efficient system to be employed is the automated order entry of charges. This will ensure that all possible errors are entirely shunned from the offices.
In conclusion, the coding of the patients account in the medical records department is another aspect that is critical in all medical centers. These codes are essential since, most insurance companies process the account for payment (Plewa & Friedlob, 1995). These procedures are of significant importance in timely billing.
References
Baldwin, B. (1996). The complete book of insurance: The consumer’s guide to insuring your life, health, property and income. New York: Irwin Press.
DeKaye, A. (1997). The patient accounts management handbook. New York: Jones & Bartlett Press.
Plewa, F., & Friedlob, G. (1995). Understanding cash flow (Finance for nonfinancial managers). New York: Wiley Press.
Yalden, C. (2007). Medical billing: The bottom line. North Carolina: Morris Press.
