Type of financial accounting used in healthcare

Accrual accounting is used in healthcare financial accounting. This allows the healthcare to record every detail concerning a patient’s treatment process without interfering with it till completion. The billing for each service and product accorded a patient is thus captured in a special report at the end of the treatment. The information is hereby furnished with the exact details describing the services, duration of time, and a total amount of the fees charged is included in the report. This report is thus crucial in all scenarios regardless of whether the patient will foot their bills or are dependent on their insurance covers.

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References

Greenwood, M. J., Baylis, R. M., & Tao, L. (2017). Regulatory incentives and financial reporting quality in public healthcare organisations.Accounting and Business Research,47(7), 831-855.

Reiter, K. L., & Song, P. H. (2018).Gapenski’s Fundamentals of Healthcare Finance. Health Administration Press.

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