Aging accounts receivable involves categorizing all receivables by the length of time they have been outstanding. This process helps in identifying overdue accounts that need collection action. It's a critical part of the financial management process in healthcare settings, ensuring that the organization maintains a healthy cash flow by actively managing and collecting outstanding patient accounts. This method also helps in assessing the effectiveness of the billing process and identifying trends in patient payments.
Reference:
National Health Services Finance Guide
Medical Office Financial Management Resources