Certified Revenue Cycle Representative (CRCR) Practice Exam

What is the outcome of collecting patient liability dollars after service?

1. Increased patient satisfaction

2. Higher accounts receivable levels

3. Lower accounts receivable levels

4. Improved cash flow

The correct answer is: Lower accounts receivable levels

Collecting patient liability dollars after service leads to lower accounts receivable levels. When healthcare organizations successfully collect the amounts owed from patients after they have received services, they effectively reduce the total amount of money that is still due to them. This reduction in accounts receivable signifies a healthier revenue cycle, as it indicates that the organization is efficiently converting its services into cash. Lower accounts receivable levels also suggest that the organization is managing its billing and collections process well, which can lead to improved financial stability. When less money is tied up in accounts receivable, it reflects a more streamlined process where payments are being collected in a timely manner, thus reducing the time between service delivery and payment. While other outcomes such as increased patient satisfaction, improved cash flow, or higher accounts receivable levels can also be relevant in different contexts, the primary and direct outcome of successfully collecting patient liability post-service is the reduction of accounts receivable levels.