Accounts receivable management. Assume there are two physician groups, Lower Merion Physician Group and Penncrest Medical Practice, and both groups have contracts with two major health plans.

a. Use the information that follows to compute Lower Merion’s days in accounts receivable, aging schedule, and accounts receivable as a percentage of net patient revenues for Health Plan A and for Health Plan B for quarter 1, 20X2. Compare the two health plans to determine which plan is a faster payor. (Hint: For simplicity, assume that each month is thirty days. Dollar figures are expressed in thousands.)

b. Use the information below to compute Penncrest’s days in accounts receivable, aging schedule, and accounts receivable as a percentage of net patient revenues for Health Plan A and for Health Plan B for quarter 1, 20X2. Compare the two health plans to determine which plan is a faster payor. (Hint: For simplicity, assume that each month is thirty days. Dollar figures are expressed in thousands.)

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Health Plan A, Quarter 1 20X2 Mar Feb Jan Quarter Days outstanding 1-30 31-60 61-90 1-90 Net accounts receivable $2,520 $600 $280 $3,400 Net patient revenues $6,300 $3,000 $700 $10,000 Health Plan B, Quarter 1 20X2 Mar Feb Jan Quarter Days outstanding 1-30 31-60 61-90 1-90 Net accounts receivable $1,680 $600 $1,120 $3,400 Net patient revenues $4,200 $3,000 $2,800 $10,000