Question
Banana hospital has annual patient service revenues of $48,253,000. It has two major third- party payers, and some of its patient are self-payers. The hospitals
Banana hospital has annual patient service revenues of $48,253,000. It has two major third- party payers, and some of its patient are self-payers. The hospitals patient accounts manager estimates that %15 of the hospitals billings are paid (received by the hospital) on day 30, 55% are paid on day 60, and 30 % are paid on day 90.
1. What is Banana hospitals average collection period (ACP)?
2.What would be the hospitals new receivables balance if a newly proposed electronic claims system resulted in collecting from third-party payers in 15, 45 and 75 days, instead of 30, 60 and 90 days?
pls show me the steps thank you
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