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Fargo Memorial Hospital has annual net patient service revenues of $129,174. It has two major third-party payers, and some of its patients are self-payers. The
Fargo Memorial Hospital has annual net patient service revenues of $129,174. It has two major third-party payers, and some of its patients are self-payers. The hospitals patient accounts manager estimates that 15 percent of the hospitals billings are paid (received by the hospital) on Day 30, 52 percent are paid on Day 60, and the remainder are paid on Day 90. (Assume 360 days per year.) What is Fargos average collection period?
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