Certified Revenue Cycle Representative (CRCR) Practice Exam

Collecting patient liability dollars after service leads to what?

1. Increased patient satisfaction

2. Higher accounts receivable levels

3. Lower accounts receivable levels

4. Improved service delivery

The correct answer is: Lower accounts receivable levels

Collecting patient liability dollars after service leads to lower accounts receivable levels because it enables healthcare providers to secure payment more quickly after services have been rendered. When patients are asked to pay their financial responsibility at the time of service or shortly thereafter, it reduces the time it takes for the healthcare organization to receive payment, thus shortening the revenue cycle. This approach not only helps to minimize the outstanding debt on the books but also aligns with more efficient billing practices. Lower accounts receivable levels indicate that the organization is collecting payments in a timely manner, enhancing cash flow and reducing the financial risk associated with unpaid claims or delayed payments. This is pivotal for maintaining the financial health of a healthcare entity. In contrast, options that suggest increased levels of accounts receivable or changes in patient satisfaction do not accurately reflect the immediate financial impact of timely collections after service. While improved service delivery may result from streamlining the billing process, the direct correlation to collecting patient liabilities after service is best associated with the reduction of accounts receivable.