Receivable, Credit and Collection

Receivable coming from:

Institutional: (Insurance)

Non-Institutional:

1) Bills- Charges

2) Balance- Promissory, Absconded, Check returned

Managing Account Receivable

Pre-admissions, Admission, Production= phases

Trade Credit Advantage

Cost for Account Receivable= BOS(C)

Bad Debt, Opportunity Cost, Sell, Contribution Margin

Policy for Collection- (I.D.E.A x BOS(C))

Intensive, Discount, Extend, Allow-Relax

->Bad Debt- LL, Opportunity Cost-LL, Sell- LL, Contribution Margin- LL

Which Policy to Choose:

Depend on

1) Economy and Competition

2) Resolution of trade off

3) Investment

Why hospital Hold Cash? (BOS(M)

Buffer contingency, Opportunity Advantage, Sale transaction, Meet Bank requirement