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Accounts receivable aging in a health care organizations

Why is an accounts receivable aging process in a health care organization important? What would occur if organizations did not use this method?

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The overall topic of accounts receivable is not really too complex so this answer will not be very long. I do think it's interesting that the question implies that the aging process in an HCO's A/R is any more or less important than it would be to any other business. The control processes used in all A/R's are pretty much the same and all for the same purpose... to track how much money is owed, where it is coming from and when it will get here. With that said...

1. Why is an accounts receivable aging process in a health care organization important?

In healthcare organizations, as well as most other types of business, the accounts receivable is one of the most significant assets the company holds. Therefore it is vitally ...

Solution Summary

In healthcare organizations, as well as most other types of business, the accounts receivable is one of the most significant assets the company holds. Therefore, it is vitally important to establish a system of internal controls/processes to manage and track it properly.

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