Question

Identify at least three ideas for reducing the revenue cycle in the healthcare industry. Would any of your ideas have the potential to reduce cost? If so, explain how and why.

Answer 1

Three ideas for reducing the revenue cycle in the healthcare industry would be as follows-

A. Promotion of discount scheme in the advance payments which will help the the healthcare organisation to reduce the collection cycle.

B. HealthCare industry can also use the lagging of the payment method to the creditors so that it will have the ample liquidity in its hands and it will help the healthcare in reducing the revenue cycle because there will be ample cash in hand because of lagging of payments to the creditor

C. It can also tie up with the medical suppliers and it can also offer various kinds of incentive schemes to the customers through them in exchange of a commission, and it should always be focused at providing them with quick incentive who are paying in no time, because it will help in improving the liquidity of the company and improving the overall revenue cycle.

Yes, these ideas have the potential because once there is receipt of the payments quickly to the healthcare industry, it will mean that it will gain through the time value of money and it will help in making better investment of the company, and making a rate of return which will be higher than capital getting stuck into the hands of its patients and debtors