Credit Policy for businesses and how to extend credit and manage credit risk

According to executives at Community Health Systems self-pay patients made up 12.1% of all CHS’s admissions for the quarter — in comparison, self-pay patients made up 3.9% of total admissions at industry peer Tenet Health care Corp. And self-pay patients make up 70% of the system’s bad debt, with the remaining 30% from co-pays and deductibles.

CFO Larry Cash said that 75% of the system’s bad debt comes from emergency room visits.

I thought this was very interesting information and if any of you are involved in health care receivables or collections, I thought you might as well.  Read the full story and please post a comment sharing what you think or how you handle your past due and bad debt accounts in the health care industry.