Management of hospital accounts receivable : a case study

A study was conducted to determine change in the status of accounts receivable and to examine those internal causal factors which gave rise to that change, in an investor owned, acute care general hospital, over a three year period. A review of current literature pertaining to the management of accounts receivable and the internal and external factors affecting accounts receivable was made. The methodology used in the study was essentially causal comparative. Internal policies, procedures and practices were examined to determine their effect on accounts receivable. Inhouse financial and statistical reports were analyzed to determine the relative change in accounts receivable over the period studied. A pilot study was conducted at the subject hospital in April, 1975. The techniques of inquiry employed in the study included field observation and investigation, personal interview and data collection. An Accounts Receivable Questionnaire was developed to aid in data collection. The findings and data analysis revealed a significant improvement in the status of accounts receivable as measured by the average days of revenue in accounts receivable. (See more in text.)