The following information represents accounts receivable data
for a small community hospital in...

Question

The following information represents accounts receivable data
for a small community hospital in Kentucky. The company has asked
for an analysis of the data.

Jones Hospital -
A/R Aging report - December 31, XXXXXXXXXXADR $92,000

ADR =90000

TOTAL
0-30
31-60
61-90
91-120
121-150
>150

Prior Year A/R

Medicare
830,000
452,000
208,000
111,000
45,000
12,000
2,000

905,000

State Medicade
1,023,000
248,000
220,000
195,000
140,000
122,000
98,000

1,140,000

Commerical Payer
1,270,000
565,000
302,000
165,000
107,000
87,000
44,000

1,142,000

Workers Comp
155,900
45,000
32,000
48,000
9,800
6,100
15,000

111,000

Self-Pay
776,000
195,000
122,000
138,000
97,000
137,000
87,000

697,000

TOTAL
4,054,900
1,505,000
884,000
657,000
398,800
364,100
246,000

4,278,000

Protected Uncollectable

12%
19%
24%
37%
66%
82%

Jones Hospital - Detailed
Aging Allowance - December 31, 2016

TOTAL
0-30
31-60
61-90
90-120
121-150
>150

Medicare
xx
11%
24%
31%
54%
70%
90%

State Medicade
xx
18%
30%
67%
90%
100%
100%

Commerical Payer
xx
40%
15%
22%
46%
78%
90%

Workers Comp
xx
15%
31%
60%
100%
100%
100%

Self-Pay
xx
80%
85%
93%
98%
99%
100%

How does the A/R compare to last year this time?
Using the â€œProjected Uncollectibleâ€� totals, what should be the
estimated allowance at 12/31? Show how this would be reported on
the balance sheet.
Recalculate the estimated allowance using the detailed aging
percentages. Show how this would be reported on the balance
sheet.
As a whole, which insurer is taking the longest period of time
to pay? What is that time? How would that compare to last year?
Identify 2 positive trends in the analysis, as well as 2
negative trends. Suggest alternatives for addressing the negative
trends.

Nitish Lath · Accepted Answer

Sheet1
		Sundry debtors
		Department	TOTAL	0-30	31-60	61-90	91-120	121-150	>150		Prior Year A/R									Department	TOTALcurrent year	Current year %	Prior Year A/R	Prior Year %
		Medicare	830,000	452,000	208,000	111,000	45,000	12,000	2,000		905,000									Medicare	830,000	20%	905,000	23%
		State Medicade	1,023,000	248,000	220,000	195,000	140,000	122,000	98,000		1,140,000									State Medicade	1,023,000	25%	1,140,000	29%
		Commerical Payer	1,270,000	565,000	302,000	165,000	107,000	87,000	44,000		1,142,000									Commerical Payer	1,270,000	31%	1,142,000	29%
		Workers Comp	155,900	45,000	32,000	48,000	9,800	6,100	15,000		111,000									Workers Comp	155,900	4%	111,000	3%
		Self-Pay	776,000	195,000	122,000	138,000	97,000	137,000	87,000		697,

The following information represents accounts receivable data for a small community hospital in Kentucky. The company has asked for an analysis of the data. Jones Hospital - A/R Aging report -...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment

Jones Hospital - A/R Aging report - December 31, XXXXXXXXXXADR $92,000	ADR =90000
TOTAL	0-30	31-60	61-90	91-120	121-150	>150	Prior Year A/R
Medicare	830,000	452,000	208,000	111,000	45,000	12,000	2,000	905,000
State Medicade	1,023,000	248,000	220,000	195,000	140,000	122,000	98,000	1,140,000
Commerical Payer	1,270,000	565,000	302,000	165,000	107,000	87,000	44,000	1,142,000
Workers Comp	155,900	45,000	32,000	48,000	9,800	6,100	15,000	111,000
Self-Pay	776,000	195,000	122,000	138,000	97,000	137,000	87,000	697,000
TOTAL	4,054,900	1,505,000	884,000	657,000	398,800	364,100	246,000	4,278,000
Protected Uncollectable	12%	19%	24%	37%	66%	82%
Jones Hospital - Detailed Aging Allowance - December 31, 2016
TOTAL	0-30	31-60	61-90	90-120	121-150	>150
Medicare	xx	11%	24%	31%	54%	70%	90%
State Medicade	xx	18%	30%	67%	90%	100%	100%
Commerical Payer	xx	40%	15%	22%	46%	78%	90%
Workers Comp	xx	15%	31%	60%	100%	100%	100%
Self-Pay	xx	80%	85%	93%	98%	99%	100%