Standardizing days in accounts receivable measurement.
Numerous formulas are used when hospitals calculate revenue days in accounts receivable. Unfortunately, various factors such as how hospitals handle Medicare accounts and credit balances can result in significant swings in revenue days. Therefore, when hospitals attempt to compare their days of revenue with other institutions, they are finding themselves comparing apples to oranges. A uniform calculation formula can be used that eliminates the variables and uses readily available information. Such a formula can provide hospitals with reasonable comparable data.
D000066:Accounting / Q000379:methods*; D000067:Accounts Payable and Receivable / Q000379:methods*; D005376:Financial Management / Q000379:methods*; D005377:Financial Management, Hospital / Q000379:methods*; D008962:Models, Theoretical; D014481:United States