The true value of accounts receivable [Video]

After a number of hospitals and health care facilities closed or merged in the past year, others are now looking at the root of their own financial troubles. The answer is usually poor accounts receivable management.

Recently, the Lehigh Valley Health Network cut out five medical offices in Pennsylvania, putting partial blame on the difference between cost of care and payments received, especially from Medicare and Medicaid patients. Many smaller hospitals in the U.S., particularly in rural areas, also closed due to declining reimbursements in 2015.

For better functioning accounts receivable management, measuring the days in accounts receivable can identify specific issues, like payment discrepancies.  Having highly trained accounts receivable professionals can also improve efficiency. 

Thanks for watching!