Accounts Receivable Management and its Impact on Hospital Administration

Author

Mark H. Belgeri, Fontbonne College

Year of Award

1994

Degree

Master of Business Administration (MBA)

College

College of Business & Professional Studies

Degree Program

Business Administration

Department

Business Administration

Keywords

medicare, business office, claims, insurance

Abstract

The lifeblood of a business is its ability to provide a service, whether it be in widgets, food service, consulting or a multitude of other options, and be paid in a timely manner for the services rendered. The key is that in any business endeavor there is a cost to deliver the service, and the entity must pay the cost to deliver the service and pass the cost on to the consumer. The health care industry is no different from any other business when it comes to operations. A hospital pays the cost of wages, insurance, supplies, maintenance, etc., and passes along the same costs to its consumer, the patient. A not for profit, religious affiliated hospital may be governed by a more lofty philosophy and mission than other businesses, but must still be managed like a good, strong and viable enterprise.

When you look at the balance sheet of an organization, the conversion of accounts receivable to cash results in no change to current assets. But when you think of that in terms of the hospital's ability to pay salaries and meet other expenses, then it takes on a new light.

One measure of a business' credit worthiness and bond rating uses as part of its criteria the days outstanding in accounts receivable. It is clear just how prominent a position the accounts receivable department holds for an organization, especially during this time of shrinking reimbursement from Federal and State programs, as well as the insurance industry with the proliferation of managed care plans.

Many things such as personnel issues, business practices, industry trends, contract issues, regulatory requirements, budgets and system technologies, must be orchestrated in the management of an accounts receivable department, while maintaining the lowest level possible in the accounts receivable.

Document Type

Restricted Thesis

Recommended Citation

Belgeri, Mark H., "Accounts Receivable Management and its Impact on Hospital Administration" (1994). All Theses, Dissertations, and Capstone Projects. 241.
https://griffinshare.fontbonne.edu/all-etds/241