Measuring accounts receivable performance: a comprehensive method.
Nonperforming assets, such as accounts receivable, are frequently cited as sources of financial difficulty for hospitals. Yet, many hospitals, relying on the traditional measure of accounts receivable--days revenue outstanding--may not have a true grasp of the real cost of their accounts receivable. The author discusses the costs imposed on a hospital by accounts receivable and describes three cost components that must be calculated if the true cost of accounts receivable is to be determined and controlled.
Moses H. Cone Memorial Hospital, Greensboro, NC.
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Newton
D000067:Accounts Payable and Receivable; D003361:Cost Allocation / Q000379:methods*; D005377:Financial Management, Hospital / Q000379:methods*; D008962:Models, Theoretical; D014481:United States