Philippine E-Journals

Title Revenue, Billing, and Cash Collection Cycle of a Meduim-Sized Medical Center in Calamba City, Laguna: A Walk-Through of the Existing Internal Control Process

Deomark B. Asi | Marravirlin O. Ilagan | Mark Quintin G. Nuñez

Discipline: Accountancy

 

Abstract:

This study was designed to evaluate and assess the effectiveness and efficiency of the internal control practices in the areas of revenue, billing, and cash collection cycle of a medium-sized Medical Center in Calamba City, Laguna by reviewing its internal control practices.

 

The study employed descriptive research design using the evaluative developmental approach. Primary data were gotten from the staff of Medical Center associated in the revenue, billing, and cash collection cycle through interview, observation, and internal control questionnaire. In addition, the center’s existing internal control practices were compared with the policies and procedures of other medical centers.

 

It was found out that although the Center gained a positive response from the respondents who answered the Internal Control Questionnaire Assessment for Revenue Cycle System; its existing internal control practices were not effective because not all the employees have enough knowledge on the system. These were seen in the inconsistencies on the responses of the respondents in the interview and questionnaire. There were also some weak points in the current implementation of policies and procedures of its revenue cycle.

 

As a result, the study forwarded a number of recommendations that would hopefully help the Center improved its current system. Few of which were the following:

 

1. The internal auditor should perform a “surprise audit” sometimes.
2. The hospital administrator who is assigned in supervision should have a thorough monitor in the operations of billing, cash collection, receivables, and accounting record management.
3. Employee’s evaluation should be implemented to assess performance measures and to monitor the process quality, cost, and cycle time through separate evaluation at least once a month.
4. The job rotation should be implemented twice a year to enhance the employees’ knowledge about the whole function in the revenue cycle and to be flexible enough in performing works of other employees in the related areas when necessary.
5. It should be ensured that the officer in-charge in the areas of billing, cash collection, and receivables continuously attends trainings that would enhance the skills needed.