Payer pre-payment audits are stretching CHS’s A/R days, CFO says
Community Health Systems is struggling with increasing accounts receivable due to insurers taking longer to pay claims amid heightened pre-payment scrutiny, according to CFO Jason Johnson. This situation is stretching the company's cash flow as insurers are now delaying payments and conducting more thorough audits before disbursing funds. Such delays and scrutiny are significant because they impact the hospital's operational liquidity and could strain financial planning and patient care services. This issue underscores broader challenges in the healthcare revenue cycle management landscape.
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