Cash Posting and Credit Balance Management are critical components of Revenue Cycle Management (RCM) in healthcare, directly affecting the accuracy of financial records and ensuring the smooth flow of payments from insurance companies and patients. Let’s explore both concepts in detail.

Cash Posting in Healthcare :

Cash posting refers to the process of recording payments received from insurance companies, government payers (e.g., Medicare, Medicaid), and patients into a healthcare provider’s billing system. It is a critical step that ensures the revenue is accurately reflected in the healthcare organization’s financial records. Proper cash posting can improve cash flow and help identify any discrepancies between expected and received payments.

Steps in the Cash Posting Process:

Payment Receipt :

Payments come from multiple sources such as insurance companies (both primary and secondary), government payers, and direct patient payments. These payments may be received in various forms: Electronic Funds Transfer (EFT), Electronic Remittance Advice (ERA), checks, or credit card transactions.

Payment Posting :

Once payments are received, they are posted to the correct patient accounts in the billing system. This involves assigning the payment to the corresponding claim or service, ensuring it is reflected in the patient’s account.

Automated vs. Manual Posting :Many healthcare organizations use automated payment posting systems that integrate with electronic remittance advice (ERA). This speeds up the process and reduces the risk of human errors. However, manual posting may still be required for complex cases, such as partial payments or adjustments.

Adjustment Posting :

After posting payments, adjustments are made based on payer-specific contracts. This could include contractual adjustments, write-offs, or payer-specific allowances. These adjustments ensure that the billed amounts align with what the payer has agreed to reimburse.