What is the purpose of a remittance advice (RA) in healthcare?

A remittance advice (RA) serves a crucial function in healthcare revenue cycle management by detailing payment amounts, denials, and adjustments related to claims submitted for healthcare services. When a healthcare provider submits a claim to an insurance company, the RA is sent back to the provider after the claim has been processed. This document outlines how much the insurer has paid, any adjustments made to the billed amount, and reasons for any denials.

Understanding the details provided in a remittance advice allows healthcare organizations to reconcile their accounts, ensuring that they accurately reflect what has been paid and what remains outstanding. Additionally, it provides a transparent overview of the payer's decisions, which is essential for managing cash flow and following up on denied claims or discrepancies.

The other options do not accurately represent the purpose of a remittance advice. It does not inform patients about their treatment, provide summaries of medical records, or notify them about upcoming appointments; instead, it focuses specifically on the financial aspects of claims processing. Thus, the correct choice highlights the integral role of RAs in the financial operations of healthcare providers.