DB #4: Accounting Software:
Accounting software used by healthcare organizations is instrumental in providing financial accounting data and financial information, support compliance, streamline operations creating efficiencies & improve effectiveness, and guide the growth & competitiveness in the marketplace.
In this discussion, in no less than 200 words
Please describe accounting software that the healthcare industry uses (in the large integrated delivery systems, hospital systems, health plans, pharmaceutical companies, managed care entities, medical groups, and physician offices).
Compare the features that support the management of accounting and financial operations, as well as the healthcare business.
In addition, please reply to one of your classmates posting in no less than 100 words.
Both postings should present quality, thoughtfulness, and unique perspectives.
Here I copy & paste one of my classmate’s (Ashima) post, you should reply her post for 100 words:
Healthcare accounting software is a system that manages a healthcare practices revenue cycle. Its purpose is threefold: automating the billing process to relieve the clerical workload on the staff, streamlining the process by collecting all the necessary steps in a single interface, and serving as a secondary net for catching errors that can be costly to both patients and practices.
Healthcare accounting software streamlines patient management tasks like patient accounts, collections and copays. Additionally, it handles back-office and billing functions such as accounts payable, accounts receivable and general ledger features. It also helps manage the often complex workflow of processing claims with insurance providers and Medicare/Medicaid programs and automates the process of importing data, checking it for accuracy (scrubbing) and generating reports based on the data for decision-makers to utilize.
Finally, a good healthcare accounting system tracks billing information, giving a complete record for each patient that offers an overview of billing history, their payment habits, level and type of insurance coverage, etc. This record lets the healthcare firm send bills, request payments, send automated reminders and deliver collections letters if necessary (Adair, 2019).
The range of choice healthcare firms have when it comes to accounting software is astounding; however, most leaders in the business today also integrate Enterprise Resource Planning (ERP) systems within the accounting software. ERP systems are business management tools that give users an integrated view of core business operations, such as cash flow, production capacity, orders and purchasing, and payroll. The systems gather and consolidate data from across several departments to facilitate information exchange and automate back-office functions. In healthcare, ERP eliminates financial data siloes that have traditionally separated back office functions. With an ERP system, providers can manage supply chains with greater ease and break down the walls between front-end revenue cycle management duties, such as patient access, and back-end responsibilities, including claims management (Top 10 Enterprise Resource Planning (ERP) Vendors By Hospital Use, 2019).
Industry leaders in healthcare accounting include Oracles Netsuite (which is used by companies such as Aviva Systems Biology and Invisalign Australia for its great customer relationship management resources, real-time reporting and built-in internal controls) and Sage Intacct (which is used by Vera Whole Health, the Public Health Accreditation Board (PHAB), University Clinical Health, Accurate Neuromonitoring and Tri-County Mental Health Services Inc. for its HIPAA-compliant healthcare cloud accounting software) (NetSuite.com, n.d., Healthcare Accounting Software, 2020).
