Accounting for clinics & healthcare
Insurance receivables that arrive late and short, a VAT regime split between zero-rated and standard-rated services, and practitioner revenue shares — healthcare accounting has its own anatomy.
Healthcare issues we handle
- Insurance receivables aged by payer, with rejection tracking
- VAT split: zero-rated preventive/basic care vs 5% elective services
- Doctor and practitioner revenue-share calculations
- Consumables and pharmacy inventory control
- Patient advances and treatment packages deferred correctly
- Remittance advices reconciled line by line to claims
Cash received is not revenue earned
Clinics earn revenue at service date but collect from insurers weeks later, minus deductions and rejections. We age receivables by payer, quantify rejection and resubmission rates, and reconcile remittances to claims — so the balance sheet shows what's collectible, not what's hoped for.
On VAT, qualifying preventive and basic healthcare is zero-rated while many cosmetic and elective services carry 5% — the classification must hold at invoice level, because that's where the FTA will test it.
FAQs
Is healthcare zero-rated for UAE VAT?
Preventive and basic healthcare supplied by licensed providers is zero-rated; services not aimed at treatment or prevention — many cosmetic and elective procedures — are standard-rated at 5%. Each service line needs the right classification.
How do you deal with insurance rejections?
Rejected claims are tracked to resubmission or write-off with payer-level statistics, so recurring rejection causes get fixed at source instead of silently eroding revenue.
Can you compute doctor revenue shares?
Yes — percentage or tiered schemes calculated monthly from reconciled collections, with a working paper per practitioner that keeps those relationships smooth.
How should treatment packages be booked?
As deferred income at sale, recognised per session delivered — while VAT is generally due upfront at payment. The two timings differ, and both must be right.
Run the numbers with people who know your industry
Free consultation. Bring your latest P&L — or your shoebox of invoices. Both are fine.