JHHS Finance Policies: A Summary

John Hopkins Health System (JHHS) operates under a comprehensive set of financial policies designed to ensure responsible management of resources, regulatory compliance, and the long-term financial health of the organization. These policies cover a wide range of areas, including revenue cycle management, expense management, investment strategies, and financial reporting.

Revenue Cycle Management

Effective revenue cycle management is crucial for JHHS’s financial stability. Policies in this area address patient registration, insurance verification, coding, billing, and collections. Key policies include:

• Patient Access and Registration: Standardized procedures ensure accurate demographic and insurance information is collected upfront to minimize claim denials. Emphasis is placed on patient education regarding their financial responsibilities.
• Coding and Documentation Compliance: Strict adherence to coding guidelines (ICD-10, CPT) is mandated, with regular audits and training to ensure accuracy and prevent fraud. Policies outline requirements for complete and accurate documentation to support coding choices.
• Billing and Claims Submission: Timely and accurate claims submission is prioritized. Policies dictate claim scrubbing processes to identify and correct errors before submission, as well as protocols for handling denials and appeals.
• Collections and Financial Assistance: JHHS provides financial assistance programs to eligible patients. Policies clearly define eligibility criteria, application processes, and payment options. Compassionate and ethical collection practices are emphasized.

Expense Management

Controlling expenses is vital for maintaining profitability and funding strategic initiatives. Policies cover procurement, travel, and employee reimbursements. Highlights include:

• Procurement and Vendor Management: Centralized purchasing procedures are implemented to leverage economies of scale and negotiate favorable contracts. Policies outline requirements for competitive bidding, vendor selection, and contract management.
• Travel and Entertainment: Policies limit travel expenses to reasonable and necessary costs, adhering to pre-approved travel budgets. Specific guidelines cover airfare, lodging, and meal expenses.
• Employee Reimbursements: Reimbursements for employee expenses are subject to strict documentation requirements and approval processes. Policies define eligible expenses and prohibit personal or unauthorized purchases.

Investment Management

JHHS manages its investment portfolio prudently to generate returns while minimizing risk. Policies address asset allocation, investment selection, and risk management. Considerations include:

• Investment Objectives and Risk Tolerance: The investment policy statement defines the overall investment objectives, risk tolerance, and performance benchmarks.
• Asset Allocation: Policies specify target asset allocation ranges to diversify investments across various asset classes, such as equities, fixed income, and alternative investments.
• Investment Selection: A rigorous due diligence process is employed to select qualified investment managers and individual securities. Ethical and social responsibility considerations may also be factored in.

Financial Reporting and Compliance

Transparent and accurate financial reporting is essential for accountability and regulatory compliance. Policies cover accounting principles, internal controls, and audits. Key aspects include:

• GAAP Compliance: Financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP).
• Internal Controls: A robust system of internal controls is maintained to safeguard assets and prevent fraud. Policies document control procedures for key financial processes.
• Audits: Regular internal and external audits are conducted to ensure financial statement accuracy and compliance with applicable laws and regulations.

These policies are subject to periodic review and updates to reflect changes in regulations, best practices, and JHHS’s strategic objectives. They are designed to support the organization’s mission of providing high-quality healthcare while ensuring financial sustainability.