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The impact of denials on the revenue cycle includes all of the following EXCEPT:

a) Increased accounts receivable
b) Delayed cash flow
c) Improved payer-provider relationships
d) Higher administrative costs

1 Answer

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Final answer:

Denials in the revenue cycle lead to increased accounts receivable, delayed cash flow, and higher administrative costs, not improved payer-provider relationships.

Step-by-step explanation:

The impact of denials on the revenue cycle includes several key issues for healthcare providers, but improved payer-provider relationships are not one of them. Typically, denials lead to an increased accounts receivable balance, as the money owed by payers remains unpaid and accumulates over time. This, in turn, leads to a delayed cash flow as the timing of income is pushed back, challenging the provider's financial stability. Finally, denials often result in higher administrative costs, as additional resources are required to manage the denial, investigate the cause, resubmit claims, and communicate with payers.

Therefore, the correct answer is c) Improved payer-provider relationships.

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