Bad Debt End of Month Statements and Account Receivable (Bad Debt) Each Hospital is responsible for • • • • • • • • •
Local financial policy Managing client financing and Accounts Receivable (AR) Managing monthly client statements (Printing, mailing, and collection) Managing collections/collection agency and bad debt Bad Debt Any unpaid client balance 90 days past due is considered “Bad Debt” At 90 days past due, Accounting removes this debt from the hospital’s revenue in their next financial statement Accounting will deduct the bad debt from the revenue line in each month’s Statement of Operations and include this Bad Debt as a negative line item in the Revenue by Category Report But if you collect AFTER either through an agency or on your own it can be added back by using an MCR and Bad Debt Accounting code. RULE OF THUMB: When writing the hospitals personal financial policy, it is best to offer as little deferred payments as possible. When required, the goal should be to have the balance on deferred payments paid in full by 90days of service to avoid the bad debt appearing on the hospital’s financial statements.
Bad Debt – Found in Revenue by Category Report each month National Veterinary Associates Revenue by Category vs. Prior Year For the period ended September 30, 2017 114-Merrimack Veterinary Hospital
Bad Debt appears as a negative revenue line item each month Month-to-Date Actual 09/30/17 REVENUES Professional Services Office Visits/Consultations Vaccinations Procedures Surgery Anesthesia Dental Hospital Pharmacy Laboratory - In House Laboratory - Referral Radiology/Ultrasound Heartworm & Flea Products Sales Discounts Bad Debts
%
Actual 09/30/16
10/23/17 12:14 PM
Year-to-Date %
Variance
Actual 09/30/17
%
Actual 09/30/16
%
Variance
26,909 13,656 6,016 6,740 4,717 11,517 3,374 33,200 18,363 21,714 7,166 11,037 (3,954) (1,318)
13.89% 7.05% 3.11% 3.48% 2.44% 5.95% 1.74% 17.14% 9.48% 11.21% 3.70% 5.70% -2.04% -0.68%
24,502 12,331 8,259 10,786 6,111 11,869 3,109 29,530 16,222 22,170 11,125 9,880 (5,229 (6,104
13.08% 6.58% 4.41% 5.76% 3.26% 6.34% 1.66% 15.77% 8.66% 11.84% 5.94% 5.27% -2.79% -3.26%
2,407 1,325 (2,243 (4,046 (1,394 (352 265 3,669 2,141 (457 (3,959 1,157 1,275 4,786
82,697 41,026 25,130 25,055 19,936 42,933 11,461 97,903 53,098 71,926 28,402 35,880 (20,203 (5,752
13.06% 6.48% 3.97% 3.96% 3.15% 6.78% 1.81% 15.47% 8.39% 11.36% 4.49% 5.67% -3.19% -0.91%
76,316 37,191 25,636 24,180 14,152 31,895 9,381 92,383 52,204 62,744 27,348 32,351 (9,300 (23,214
13.43% 6.54% 4.51% 4.25% 2.49% 5.61% 1.65% 16.25% 9.18% 11.04% 4.81% 5.69% -1.64% -4.08%
6,382 3,835 (506 875 5,784 11,038 2,081 5,520 894 9,183 1,054 3,529 (10,903 17,462
159,136
82.17%
154,561
82.51%
4,575
509,494
80.48%
453,267
79.74%
56,227
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