You Decide Healthcare Finance Management

Healthcare Finance Management
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Abstract
Accounts receivable are the money that customers owe to an organization. They are either not able to pay, or the policies allow the customers to stay with money for a period before paying. If one is not ken, they may find themselves operating in deficits. Simply put, any organization that wants to make profits cannot afford to carry out its activities with money being owed by customers. There will be no finances to facilitate other things required by the organization. Hence, it is essentiality to have the customers paying on time. If the AR is too high, a strategy to lower it is useful to change the fortunes of the organization. In this case, the management from the senior head must be alert to handle the situation successfully. It is possible to see that the higher the accounts receivable, the higher the accounts payable. All these calculations must be done in a balance sheet.
Keywords: accounts receivable, accounts payable, balance sheet.
To manage the accounts receivable, I will need to have a set of strategies at the hospital. Moreover, I will require total cooperation from various departments at the hospital. I would need the management to work with me for me to be able to implement the necessary steps to recovery for the firm. Having the AR higher than 55 for several years is a worrying trend and the situation must be arrested, (Petroons, et.al, 2014). It is imperative that I am able to salvage the situation I must be keen on all the plans that I will take.

The strategies must be workable with all the respective departments from the main management to the finance, which is most affected. I realize that anything taking place in the other departments affects the finance department in a way. These chains of events accumulate to hurt the finance department.
I will collect financial data of the different departments over the period that the facility has been underperforming. I will be comparing the performances year by year and try to identify what to change and what not to. With the comparisons, it will be easy to identify areas where a revamp is needed and how to address the situation. It will also be essential to check other similar facilities who are our rivals, (Petroons, et.al, 2014). Checking their performance and determining how they conduct their business is essential to figure out where they outdo us. I will write on cost reduction and value for money to reduce the AR. Devising a formula to cut down unnecessary costs and over expenditures is essential to the company. Identifying the problem is the first step towards recovery. This will allow me to set up ways that are answering the questions correctly.
Outside of the senior management, I will acquire other resources such as the financial performances of the different departments and that of other companies. I will be asking employees on their work experiences and interrogating the customers/patients to find an optimum level of equilibrium. From here, I will look to improve our service deliveries so that I can set policies to address the issues of ARs, (Petroons, et al., 2014). When the services are worth every coin, the customers will feel a moral responsibility to pay as fast as possible. Then I will set up policies to limits the AR and make payments as fast as possible. This will improve the financial status of the facility drastically. Improving the collection rates and the collection system is key to making a better company. I will also calculate the mean collection period to identify ways of making the system better.
In conclusion, I will present the plan to the board meeting using slides that show many mathematical concepts considered in the writing of the report. In this way, it is possible to demonstrate mathematically how the AR and the system of a collection are related. It is also easy to show trends on the financial front using figures. The rates of success are easily visible when calculations are involved, (Petroons, et al., 2014). The AR aging report will be useful to the board and should contain all the information about the strategies set to lower down on the AR. Establishing a small claims court is essential to make sure that customers are not having bills that are overdue for too long. I will know that my plan is effective when I see the AR being lower than before for a period. I will also identify success in my strategies through checking on the amounts of cash made over the same period.
References
Petroons, J., Hanan, C. C., Bailey, A. G., Gupta, S. D., Mellyn, K. L., Saal, M., … & Mondschein, C. (2014). U.S. Patent No. 8,712,887. Washington, DC: U.S. Patent and Trademark Office.