What do accounts receivable primarily include?

Accounts receivable primarily include amounts owed to a business for goods and services it has provided but has not yet collected payment for. In the context of a healthcare practice, accounts receivable usually refers to the money that healthcare providers expect to receive from patients or third-party payers, such as insurance companies or government programs. This is crucial for maintaining the cash flow of the practice, as it represents income that is expected based on services rendered.

Given this definition, the amounts receivable from third-party payers directly reflect the healthcare provider’s income, as these entities often cover a significant portion of patient bills. Each of the other options pertains to different types of receivables that are not classified as accounts receivable in the typical context of a healthcare practice. Receivables due from vendors, suppliers, or staff do not align with the standard understanding of accounts receivable in a medical practice, which is focused on what is owed to the practice for services provided.