In health care, accounts receivables represent due payments from patients for services offered and payments due from insurance companies (Ferenc 169). The accounts receivables constitute the largest part of hospitals current assets in a balance sheet (Ferenc 169). Hospitals employ resources that cost money in offering services to patients hence they require an adequate cash flow. Patient statements and claim forms are prepared for billing after patients have received medical services. Managing the accounts receivables in a hospital requires an effective system that captures all the events in the accounts receivables’ cycle (Ferenc 172). The cycle begins with the ...
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