Health Care Accounts Receivable Analysis

Health care accounts receivables are financial claims for services rendered to patients. It is often the largest non-capital asset for health care facilities whose success often depends on the aggressive analysis of accounts receivable.

Definition

• Accounts receivable are current assets on the financial statement. Accounts receivable should be actively managed so cash is collected from customers in a timely, efficient manner.

Analyze

• Analyze accounts receivable by maintaining an accounts receivable ledger listing patients and their amount owed in detail. Determine the average length of time receivables are outstanding to identify trends over prior periods and evaluate the effectiveness of current credit and collection policies.

Review

• Review facility policies and procedures relating to collections, risk and credit. Ensure policies exist to monitor accounts receivable effectively and that staff members have been trained to follow these procedures. Review industry averages and performance to identify opportunities for growth and weaknesses in accounts receivable practices.