Which of the following best describes accounts receivable?

The best description of accounts receivable is that it encompasses any charges that a healthcare organization is owed but has not yet received. This term refers specifically to the outstanding payments for services rendered, implying that the organization has provided the necessary healthcare services but has yet to collect the payment from patients or insurers.

In a healthcare setting, accounts receivable represents the money expected to be received in the future and reflects the organization’s financial health. It allows organizations to keep track of what is owed and is pivotal in managing cash flow. This distinct definition sets it apart from charges already received, patient advance payments, or funds denied by insurance, which pertain to different financial aspects within healthcare revenue cycle management. Understanding this concept helps organizations effectively manage their billing processes and ensure timely collections.