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Acc 281 Week 2 Assignments

The first article that will be summarized for assignment purposes is about increased reimbursement efforts made by a network of physicians and hospitals known as California’s Sutter Health. The goal of the new collections idea is to receive money for services from uninsured individuals before they are performed. Instead of the revenue cycle department sending out bills efforts for the admitting clerks to receive payments were made. According to the article Sutter Health saw a great reduction in their accounts receivables within the first three months of their new financial plan. In order for Sutter Health to begin this new plan financial advisors had to access the company’s weaknesses. The revenue cycle department had to wait until the months ends processes were performed. Once the assessment was performed the information gave manager insight on goals and “important business decision.” The other issue that the hospitals financial analysts were faced with is how the current accounting system did notprovide managers with detailed information within a short amount of time. A trained programmer has to develop the reports, which can be time consuming and costly (HFM 2007).

At the point when patients can't pay for care given within the hospital they tend to fall into a classification better known as uncompensated care. It is an imperative topic within the medical field. Given the fact that any service that is rendered within the healthcare organization that is free of charge must be recuperated from somewhere. Uncompensated Care is broken downto what we know as bad debt and charity care. In order to receive charity care a patient must fall into a certain category and be eligible based on income. When a patient decides not to pay for services rendered or is unable to pay due to income it is considered a bad debt.Most hospitals and doctor facilities offer consideration to a few patients at no cost when they fit certain criteria. This is known as philanthropy consideration. Bed obligation then again iswhen bills go unpaid on the grounds that patients can't or unwilling to pay. Before a patient is provided with charity care they are monitored very carefully and all requirements must be met.