Question

Why is understanding the financial risk involved with a payment method important to providers? To insurance companies?

Answer 1

Financial risks in healthcare and understanding it is pertinent for the helathcare provider organizing to survive and thrive to maintain financial viability and profitable to provide best possible treatment and care. The payment risk related to the reimbursement and theoay structure associates is critical to maintain clear fincial flow and meeting the financial requirements of the organization while providing the services. Payment methodology and understanding it's implications is important for the functioning of the organization, additional of the resources, equipment addition and maintenance, salaries and all expenses. When the payment method is newly introduced and not clearly understood it can seriously impact the financial functioning and overall growth of the organization.

The insurance provider also need to understand the financial risks so as to remain updated on the new payment methods and design the insurance coverage and policies so as to provide maximum benefit for the customers. The other important aspect to study finacial risks is to keep close attention towards the reimbursement and insurnace claims that the insurers have to disburse. So the viability and insurance coverage opportunities have to be studied and understood so as to eliminate financial risk and associated problems from payment methods.