PAR Revenue Cycle Fundamentals 3

Question 1

What is a 'write-off' in the context of healthcare revenue cycle?

Accepted Answer

An amount the provider agrees to forgo as uncollectable or contractually disallowed

Answer

A write-off is an amount removed from accounts receivable because it is contractually disallowed or deemed uncollectable.

Question 2

Which of the following is the PRIMARY responsibility of the Patient Access department at the start of the revenue cycle?

Accepted Answer

Collecting and verifying patient demographic and insurance information

Answer

Patient Access is responsible for accurately collecting demographics and insurance data at registration, which drives the entire revenue cycle.

Question 3

An Explanation of Benefits (EOB) is sent by the payer to whom?

Accepted Answer

Both the provider and the patient

Answer

Payers send an EOB to the patient and a remittance advice (RA) to the provider, both explaining claim adjudication details.

Question 4

What does 'accounts receivable (A/R) days' measure?

Accepted Answer

The average number of days it takes to collect payment after a service is rendered

Answer

A/R days is a key performance metric indicating the average time it takes to collect outstanding balances after services are provided.

Question 5

Under the 'birthday rule,' when a child is covered by both parents' insurance plans, which plan is primary?

Accepted Answer

The plan of the parent whose birthday falls earliest in the calendar year

Answer

The birthday rule states that the plan of the parent with the earliest birthday in the calendar year (month and day, not year) is primary.

(PAR) Patient Access Representative Certification Practice Test