Money flow in terms of hospital

The paper, ‘Investigating Key Components of the Healthcare Money Cycle’ clarifies the various parts of the income cycle in clinics. In a clinical establishment, the income cycle includes all the managerial and clinical cycles that guide in the catch, organization, and assortment of income from patients. The run of the mill income pattern of a clinic contains two primary segments: The back and the front end. The front-end cycle is liable for overseeing quiet dealing with measures consequently addresses that face of clinical practice. When looking for treatment, people first experience the faculty and divisions related with the front-end income cycle. The front-end measures incorporate booking of strategies, enrollments of patients, discovering their qualification for prescriptions, approval and collecting the upfront payment. The upfront payments are the critical component of the front-end cycle because the continuous increase in high deductible medical plans makes the patients responsible for a significant amount of the clinical fees.

Once the front-end is complete, the cycle continues to the back end. The back-end entails various activities such as management of claims, billing of medical fees, and determination of the final patient collection. Claims management involves converting the doctors and nurses time and the clinical services into billable costs. It, therefore, requires adequate documentation to prevent leakage of revenue (Belliveau, 2017). Once the claims are administered, the balances of the patient accounts are sent to the collection department. Back-end collections are critical since they account for between 50% and 70% of the total revenue. To improve collections, hospital should adopt electronic systems. Efficient revenue collection necessitates collaborations because the cycle is complex.


From an individual perspective, the given article is relevant to AIS because it addresses the various ways in which to collect, manage, retrieve, process and use financial data in healthcare institutions. Such data is essential for decision-making and planning by management and other stakeholders. Controls within the cycle prevent revenue leaks and ensure that accurate information is processed. Moreover, it guarantees that the maximum revenue is collected at the minimum cost.


Belliveau, J. (2017). Exploring Key Components of the Healthcare Revenue Cycle. Retrieved from

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