Invoicing and A/R Question for Doctors Accounting
I have question regarding Doctors accounts.
Doctor's patient is hospitalised. Doctor makes hospital visit to see and treat patient. Patient gets discharged.
Scenarios:
1. Hospital prepares Bill to patient and includes in it the Doctor's charges. Patient pays hospital. Hospital then pays doctor.
2. Hospital prepares Bill to patient and includes in it the Doctor's charges. Subsequently all parties or patient and Doctor agree that patient will settle with the Doctor directly. Patient pays hospital bill less the Doctors charges. Patient then owes or pays directly to Doctor afterwards.
3. Hospital prepares Bill to patient and excludes in it the Doctor's charges as all parties agree that patient will settle with the Doctor. Patient pays hospital bill. Patient then owes or pays directly to Doctor afterwards.
How does doctors billing process work on each of the above scenarios? To whom is invoice billed in each of the above scenarios? And against whose account is Billing and A/R tracked in each of the above scenarios?
My view of accounting and handling Billing and A/R (correct me if I am wrong).
1. Doctor bills invoice to hospital and tracks A/R under Hospital's name i.e. Hospital becomes the owing Customer in the Doctor's Books).
2. Doctor bills invoice to hospital under Hospital's name. Then Credit Note is raised to reverse the same by Doctor. Then doctor bills invoice in patient's name and tracks A/R under patient's name in his Books.
3. Doctor bills invoice to patient and tracks A/R under patient's name. Hospital does not appear anywhere as Customer in Doctor's Books.