Chapter 11 Managing Revenue Cycle

Question 1

the single greatest reason for not billing or collecting accounts receivable in a timely manner.

Answer 1

inadequate or incorrect information

Question 2

Costs associated with extending credit to the patient after services have been provided

Answer 2

Carrying costs

Question 3

Billing and collection costs incurred during the average payment cycle

Answer 3

Routine credit and collection costs

Question 4

Costs incurred due to the patient/third party not paying on time during the average payment cycle

Answer 4

Delinquency costs

Question 5

The number of days between the time of services and the time of payment.

Answer 5

collection period

Question 6

The objective of revenue cycle management is to reduce the

Answer 6

collection period

Question 7

Management of the _______ cycle includes four steps:
1. Policies and procedures

2. Accounting system
3. Medical record system
4. Credit-and-collection policy

Answer 7

Revenue

Question 8

Consists of accounting systems and supporting procedures the provide systematic, automatic safeguards to protect the integrity of the accounting information

Answer 8

Internal control

Question 9

Often play a role in determining effectiveness of the accounting system by verifying the systems internal control

Answer 9

Internal auditors