Measuring and monitoring quality in accounts receivable

Traditionally, billing activities and accounts receivable have been monitored using days in accounts receivable, an accepted measure of performance. Unfortunately, days in accounts receivables does not measure the quality of the receivable cycle--important to receivables performance and turnaround. By developing a system of quality measurement for the receivable cycle, the financial manager is able to identify financial risk, submit an accurate claim, and reduce the need for costly follow-up activity, improving receivables performance for the hospital.