What is the term for money that the practice is owed by patients or insurance?

The term for money that the practice is owed by patients or insurance is "Accounts receivable." This is an essential concept in medical and financial management, as accounts receivable represent funds that are anticipated to be collected from patients and insurance providers for services rendered.

In a medical practice, when a patient receives treatment, it may take time for the insurance company to process the claim and reimburse the physician or practice. During this time, the amount owed is recorded as accounts receivable. This figure is crucial for cash flow management and helps practices understand their financial health.

While other terminology such as accounts payable refers to money that the practice owes to others, liabilities indicate the total debts and financial obligations of the practice. Equity represents the ownership value in the practice after liabilities have been subtracted from assets. Thus, the distinction is important, with accounts receivable specifically relating to incoming funds owed to the practice.