Question

can you explain the importance of cost centers in the revenue cycle processes? Feel free to share any relevant experiences.

Answer 1

Importance of cost centers in the revenue cycle processes

• Revenue cycle management is the process used by healthcare systems in the United States to track the revenue from patients, from their initial appointment with the healthcare system to their final payment of balance
• A cost center is a department that generates costs but doesn't produce any revenues
• health systems have viewed the revenue cycle as a cost center, evaluating success based on the ability to minimize costs.
• It is important that the financial policy is in writing, has been reviewed by legal counsel, and the patient signs and receives a copy of the policy
• For this purpose, cost centres are allocated in revenue cycle to keep track of all the processes and in turn charge cost