Financial managers use financial resources and the cost classifications
to allocate direct/ indirect costs when attempting to figure out how
to charge patients by using the visit summary and placing it into
categories. a Health organizations use charts to determine what
specific areas that would generate the most monetary profit. There
are four methods to allocate direct and indirect costs according to
(Nowicki). A direct cost can be an in-house surgery center where
small procedures can be done with twilight anesthesia. An indirect
cost could be lights/ dry cleaning/ off-site supplies meaning items
that are not in the office but located near.
The utilization office should get prior authorization so there are no
delays in payments. Also, discharging patients in a proper time
manner, or doing a proper observation before admittance. These
things would help generate proper payments.
Nowicki, M. (2018). Introduction to the Financial Management of
Healthcare Organizations (7th ed.). Chicago, IL: Health Administration
Press.
