What benchmark did City Hospital's Revenue Cycle Management team establish for discharged not final billed cases?

• A. Must not exceed average length of stay
• B. Should not exceed two days of average daily revenue
• C. Must always be completed within 24 hours
• D. Must not exceed the net average daily revenue

Answer: (B)

The benchmark established for discharged not final billed cases being "Should not exceed two days of average daily revenue" reflects a practical approach to managing the revenue cycle effectively. This benchmark ensures that the hospital's billing process remains efficient and minimizes the time between patient discharge and billing completion. By tying this timeframe to average daily revenue, the hospital can maintain a healthy cash flow and reduce the risks associated with delayed billing.

This choice also highlights a balance between operational efficiency and revenue management, allowing the hospital to set a realistic expectation for processing discharged cases while still aiming for prompt billing. It allows for the acknowledgment of potential delays or complexities that may arise in the billing process without allowing them to extend significantly beyond this timeframe, thereby protecting the organization's revenue cycle integrity.

Other choices may present specific constraints or unrealistic expectations that do not effectively support the revenue cycle operations. For instance, requiring completion within 24 hours may not always account for complexities involved in finalizing bills, while linking performance directly to the average length of stay or the net average daily revenue could complicate the billing process without providing the same clarity on revenue management.