Net revenue reporting with Revenue Cycle Analytics

In healthcare, accounts receivable is one of the areas of highest risk on the balance sheet – and one of the largest areas of auditor scrutiny.

The key to avoiding financial misstatements (and out-of-period adjustments) is using a consistent methodology to calculate healthcare AR reserves, based on supporting documentation and historical data. This standardized, automated methodology, with industry-proven calculations and best practices, is embedded in RCA – and it is designed to align with your internal policies and procedures.

RCA has a System and Organization Controls 1 (SOC 1) audit performed semiannually by an independent, external auditor, so your organization can have confidence that Crowe software is secure, complete, and accurate – and that it follows industry best practices. RCA is often recommended by external auditors as a trusted healthcare reserve and net revenue solution.

This is a common question for healthcare finance executives. There can be many reasons for increasing healthcare bad debt, including less Medicaid, changes in Medicaid qualifications and benefits, larger uninsured patient populations, higher deductibles, annual reset of benefits, poor cash collections, missed opportunities for financial assistance, and lack of controls in patient registration and verification of insurance.

An automated net revenue reporting solution like RCA can provide insights into why your organization is experiencing healthcare bad debt increases, allowing your team to build an action plan to improve net revenue.

Healthcare contractual adjustments can increase for a number of reasons, including changes in payor contract terms, changes in payor fee schedules, price level increases or strategic annual pricing increases, contract modeling inconsistencies, or payor issues (sometimes the problem is on the payor end).

An automated net revenue reporting solution like RCA can provide insights into why your organization’s healthcare contractual adjustments are increasing, which allows your team to prioritize initiatives to improve net revenue.

RCA calculates reserves and net revenue in a similar fashion to hospitals. However, RCA also pulls in physician National Provider Identifiers (NPIs) and work relative value units (RVUs) to provide our clients with visibility into reserves, net revenue, and productivity all the way down to the physician level.

Many healthcare auditors recommend a standardized, automated net revenue reporting software application to calculate and evaluate reserves and net revenue performance.

RCA provides auditable reports coupled with patient-level detail that reconciles to both the general ledger and the patient accounting system. By standardizing and automating the valuation of healthcare AR, most RCA customers can complete their net revenue close within two to three business days, including journal entries, analysis, and follow-up, with a significant reduction in opportunity for human error.