Measuring accounts receivable performance: a comprehensive method
Newton, R.L.
Healthcare Financial Management Journal of the Healthcare Financial Management Association 47(5): 33-34; 36
1993
ISSN/ISBN: 0735-0732 PMID: 10145808 Document Number: 405483
Nonperforming assets, such as accounts receivable, are frequently cited as sources of financial difficulty for hospitals. Yet, many hospitals, relying on the traditional measure of accounts receivable--days revenue outstanding--may not have a true grasp of the real cost of their accounts receivable. The author discusses the costs imposed on a hospital by accounts receivable and describes three cost components that must be calculated if the true cost of accounts receivable is to be determined and controlled.