Reimbursement and Revenue Cycle
Healthcare organizations are unique in the way they are compensated for the services that they render. According to Harrington (2016), there is no other industry with as sophisticated reimbursement function as healthcare organizations. Surprisingly, the level of complexity has gone up substantially over the last two decades. There are four major reasons why healthcare organizations’ reimbursement process is completely different from other industries. To begin with, most payments are not made by the patients themselves, but by third parties on behalf of the patients. Secondly, payment for similar services may change depending on the type of the third party making the payment on behalf of the patient. Thirdly, the determination of the amount to be …
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