Medical Technology
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Details: The point of a medical office is to help people, but it is a business that needs to generate money to stay open.
For this assignment, please include the following:
â?¢Identify the difference between billable revenue and collections.
â?¢Consider how a medical office might be helped or hindered by a disparity between receivables and collections.
â?¢Give an example of how a medical office should go about collecting bills that are 60 days past due.
â?¢List the advantages and disadvantages of using computerized banking for a medical office.
â?¢State whether standard banking (for example, physically taking checks to a bank) is better then computerized banking, and explain your answer.
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Solution Summary
This solution answers questions regarding accounting procedures of medical offices.
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* Revenue is defined as the amount of money that a company receives during a specific period including deductions and discounts for credits and/or returned merchandise.Billable revenue is an invoicable option created prior to the need for collections. revenue. They are the assets of a medical office and other businesses. Billable revenue consists of services that the patient has to pay for , whether or not they are covered by insurance. Co-payments on certain insurance plans are some examples of billable revenue.Collections are rationalized assets: what an office feels is owed to them financially. Collections are only used by a medical office when a patient has not paid for various medical services that he/she underwent.
*Medical offices will always be hindered by a disparity between receivables and collections because collections consist of the assets that are currently present and the financing that needs to be provided to ensure continued financial growth whereas receivables are treated as a current asset. If there is disparity between the two it would likely be due to an ineffective collections policy or an ineffective system. A disparity between receivables and collections would also likely lead to an inaccurate calculation of current assets on a ...
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