Commumication Case
For this course project it was decided on to do Accounts Receivable Cycle. This topic was decided on because in health care it is a big problem. Accounts Receivable is a problem no matter what kind of company it is. If the company or hospital does not keep up with their accounts receivable it can get out of hand easily. There are many companies that are so deep in accounts receivable that they have to write off so much money that it is hurting them. The main concern with accounts receivable is not just patients not paying but rejections from insurance companies as well. There are more and more rejections now because of all the changes that the insurance companies are making on a daily basis. This is big problem for health care system because hospitals and doctor offices that are having a hard time trying to keep up with all the changes that they are being rejected and they are not able to reclaim and get their money.
There will be many different steps and solutions that will be followed in order to help turn a company’s accounts receivable around. The first place that will need to be addressed is the managerial portion of the company. The company will need to get the managers on board with the changes that will need to be made to get the accounts receivable moving in the right direction. The company will need to have the manager’s start running daily reports and make sure that they are balanced. By running reports and balancing them the managers will be able to keep an eye on the accounts receivable for the customer or vendor. This can also help determine when the manager should start having employees make calls and find out what the time frame is for payment. Managers should also have 1-2 staff members that will do nothing but make the calls and set up arrangements for payments from the vendors and the customer. Managers will also need to make sure that they keep these reports on hand in case the upper management inquires about a vendor or customer.