Page 40 - FOR FLIP BOOK [single page]Cluster report 2018-2020 (1)

New Territories East Cluster
Notes to the Financial Statements (Continued)

3. Accounts receivable (Continued)

(a) Aging analysis of bills receivable (Continued):

The policy in respect of patient billing is as follows:

(i) Patients attending outpatient and accidentand emergency services are requiredto pay fees before services
are performed.

(ii) Private patients and non-eligible persons are required to pay deposit on admission to hospital.

(iii) Interim bills are sentto patients during hospitalisation.Final bills are sent if the outstanding amounts have
not been settled on discharge.

(iv) Administrativechargeis imposedon latepaymentsof medicalfeesandchargesfor medicalservicesprovidedat
5% of the outstanding fees overduefor 60 days from issuanceof the bills, subjectto a maximumchargeof
HK$1,000 for eachbill. An additional10%of theoutstandingfeesareimposed if the bills remainoutstanding
90 days from issuance of the bills, subject to a maximum additional charge of HK$10,000 for each bill.

(v) Legal actionwill be instituted for outstanding bills where appropriate.Patientswhohavefinancialdifficulties
may be considered for waiver of fees charged.

(b) Movements in the provision for doubtful debts are as follows:
31 March 2020 31 March 2019
HK$’000 HK$’000

At beginning of year 6,057 7,227

Provision for impairment of receivables 4,587 2,172

Uncollectible amounts written off (2,844) (3,342)
At end of year 7,800 6,057

The maximumexposure tocredit risk atthereporting date is thefair valueof receivable mentionedabove. The
Cluster does not hold any collateral as security.

Appendices - A. Financial Report
4. Deposits and prepayments
31 March 2020 31 March 2019
HK$’000 HK$’000

Utility and other deposits 332 371

Prepayments to Government departments 940 12,395

Maintenance contracts and other prepayments 13,248 10,001

14,520 22,767
The above balances donot contain impaired assets.The maximum exposure tocredit risk atthe reporting date is the
fair value of the assets mentioned above. The Cluster does not hold any collateral as security.