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    Home > Body of Knowledge | Financial Management

    Financial management in a medical practice involves the development and maintenance of financial systems to ensure a profitable practice. Skills in accounting, budgeting, revenue cycle management and financial analysis support effective financial management.

    Financial management performance objectives include:


    Coding and billing concepts, payer reimbursement policies and revenue cycles

    • Explain how the various functions of front-end operations are performed, including scheduling, insurance verification, authorizations, and copayment and deductibles collection.
    • Identify inaccuracies in medical record documentation, charge capture and coding.
    • Conduct a charge audit.
    • Submit a claim.
    • Resolve an edit to a claim.


    Cash flow management

    • Manage a non-patient accounts receivable.
    • Analyze and design a cash flow projection.


    Accounts payable management

    • Describe the basics of bookkeeping.
    • Identify and give an example of the use of accounting software.
    • Discuss vendor payment terms.
    • Define lease agreements.
    • Explain segregation of duties.


    Payroll systems management

    • Explain the payroll process.
    • Illustrate a policy and procedure that ensures that the organization is paying employees the correct amount for the exact hours worked.
    • Identify employment and payroll regulatory requirements.


    Budget management

    • Discuss the various types of budgets and their application for a medical group practice.


    Audit processes

    • Describe the different types of audits and explain what an audit report should include.
    • Discuss the generally accepted auditing standards (GAAS).

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