Certified Revenue Cycle Representative (CRCR) Practice Exam

What does EFT stand for in healthcare transactions?

1. The establishment of internal audits by personnel outside the involved department.

2. A standardized healthcare claim payment/advice known as the 835 format.

3. The electronic transfer of funds from payer to payee through the banking system.

4. A process that requires the separation of duties when processing patient payments.

The correct answer is: The electronic transfer of funds from payer to payee through the banking system.

In healthcare transactions, EFT stands for the electronic transfer of funds from payer to payee through the banking system. This process facilitates quick and secure electronic payments, ensuring that funds are moved between healthcare payers (like insurance companies) and healthcare providers (such as hospitals and physicians) without the need for physical checks. The use of EFT significantly streamlines the payment process, improves cash flow for providers, and reduces administrative costs related to payment processing. In the context of healthcare, this method is increasingly favored for its efficiency and effectiveness, as it reduces turnaround time for payments and minimizes the risks associated with paper checks, such as loss or theft. This understanding of EFT is crucial for anyone involved in healthcare financial management or billing, as it reflects a shift towards digital transactions in the healthcare industry.