A GUIDE TO SIMPLIFY THE EVALUATION OF COMPUTERIZED ACCOUNTS RECEIVABLE FINANCIAL SYSTEMS FOR HOSPITALS

IRVING FITTERMAN, Pace University

Abstract

Many hospitals have closed because of financial crisis. There are many that feel improved computerized accounts receivable systems could increase cash flow and income at hospitals to stave off future closings. Unfortunately, evaluating such systems is complex and costly. A guide to simplify such evaluation could be most helpful. Recognizing that hospital reimbursement methodology is mainly based on peer groupings (commonality), the hypothesis of this study was "a guide based on certain organizational variables and accounts receivable needs, (after determining their relationships), would simplify the evaluation...."^ The population participating in the study was 50 hospitals within New York City. The voluminous data collected via questionnaire and governmental documents were analyzed by computer using common statistical methodologies. While the analysis of organizational variables indicated some diversity of the population in number of beds, clinic visits, etc., there appeared to be much commonality in accounts receivable needs expression, personnel assigned to the evaluation and even in most of the organizational variables.^ This commonality allowed the guide to be constructed with preselection of elements, as 90 and 30 percent of the population indicated those elements which are "important" and "not important" respectively, to have within a system. Those few elements not preselected in the guide are left to the user's discretion. However, they are easily determined through the use of a worksheet which is provided with the guide. In summary, the results of the study indicated that there were sufficient relationships to substantiate the validity of determining accounts receivable needs in relationship to organizational variables. Additionally, a test validation and testimonial by two users indicated the simplicity in using the guide.^ The importance of this study and its implications to the industry are as follows: (1) recognizing commonality, hospitals might employ the same systems; (2) this would reduce costs to develop and customize systems; (3) evaluating systems would be simpler and less costly; (4) decisions could be made more rapidly; (5) personnel could be more effectively assigned to the evaluation; (6) hospitals might determine commonality of need in other areas, such as clinical; (7) commonality analysis might facilitate hospital mergers and acquisitions; (8) finally, hospitals might increase cash flow and income. ^

Subject Area

Business Administration, Management

Recommended Citation

IRVING FITTERMAN, "A GUIDE TO SIMPLIFY THE EVALUATION OF COMPUTERIZED ACCOUNTS RECEIVABLE FINANCIAL SYSTEMS FOR HOSPITALS" (January 1, 1984). ETD Collection for Pace University. Paper AAI8416972.
http://digitalcommons.pace.edu/dissertations/AAI8416972

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