The Influence of the Accounts Receivable Collection System and Management Supervision on the Timeliness of Insurance Receivable Payments: A Case Study at Royal Taruma Hospital, Jakarta

Abstract

This study aims to analyze the influence of the Accounts Receivable Collection System and Management Supervision on the Timeliness of Insurance Accounts Receivable Payments at Royal Taruma Hospital, Jakarta. This study employed a quantitative research method with associative and descriptive approaches. The empirical data were collected by distributing questionnaires to 100 respondents, selected using a saturated sampling technique (census) which included employees in the Finance, Accounting, Billing, Casemix, and other departments directly involved in managing insurance claims. Data analysis was conducted using the Partial Least Squares–Structural Equation Modeling (PLS-SEM) method with SmartPLS 4 application. Measurement model evaluation (outer model) confirmed excellent convergent validity (loading factors > 0.70, AVE > 0.50), discriminant validity (HTMT ratio < 0.90), and construct reliability (Cronbach's Alpha and Composite Reliability >= 0.70). Structural model testing (inner model) partially revealed that the Accounts Receivable Collection System has a positive and significant effect on the Timeliness of Insurance Accounts Receivable Payments, with a t-statistic of 8.729 and p-value of 0.000 (< 0.05). Similarly, Management Supervision has a positive and significant effect on payment timeliness, with a t-statistic of 7.212 and p-value of 0.000 (< 0.05). Simultaneously, both variables explain 51.8% of the variance in the timeliness of receivable payments (Adjusted R Square = 0.518), while the remaining 48.2% is explained by other factors outside the scope of this research model. The findings conclude that implementing a well-structured billing administration and maintaining optimal internal controls are vital for sustaining hospital cash flow and liquidity.