Options For The Clinic Paper

Options for the clinic The primary object for the clinic is to devise a way to increase the clinic’s working capital. Increasing capital is achieved through equity, debt or trade credit (Nowicki, 2015). Equity is money that is provided by investors, debt is incurred when money is borrowed to cover expenses and trade credits come when an organization works with their vendors to extend credit. Increasing debt should only be considered when there is good reason to believe the debt can be repaid. If the clinic has a good credit history it may be possible to establish a line of credit with a bank at the prime rate. If the clinic’s credit history is not good, the interest rate will likely be the prime rate plus a percentage, to help cover the

What problems will the internal auditor discover?

The problems identified in the internal audit will depend on the quality of the information obtained during precare, which should include all of the information necessary to treat and bill the patient as well as the information obtained and documented during care (Nowicki, 2015). It is during care that charges should be posted both promptly and accurately (Nowicki, 2015). Review of the patient chart by a review nurse or discharge planner will help to assure the documentation is accurate and appropriate for reimbursement (Norwicki, 2015).

By delaying billing, the hospital has essentially increased the carrying costs associated with their accounts receivable. The hospital has provided a patient service but has not generated a patient bill and thus has not received the revenue for the service provided. This will need to be addressed quickly if the hospital is to remain financially viable. I anticipate the auditors will find large amounts in accounts receivable that have not yet be submitted for billing and depending on the hospital’s cash flow, may also find large amounts in accounts payable due to the hospital’s inability to pay for supplies and services due to the lack of revenue from

The other issue that will need to be addressed is patient satisfaction. The hospital could draft a letter to be submitted with the bill acknowledging the delay and assuring patients that the issue has been brought to leadership’s attention and that it is being addressed. Patients should be thanked for selecting the hospital and the hospital should reaffirm their commitment to providing excellent care and