diff --git a/erpnext/healthcare/doctype/healthcare_settings/healthcare_settings.py b/erpnext/healthcare/doctype/healthcare_settings/healthcare_settings.py
index e2ccc34..a16fceb 100644
--- a/erpnext/healthcare/doctype/healthcare_settings/healthcare_settings.py
+++ b/erpnext/healthcare/doctype/healthcare_settings/healthcare_settings.py
@@ -11,7 +11,7 @@
 
 class HealthcareSettings(Document):
 	def validate(self):
-		for key in ['collect_registration_fee', 'link_customer_to_patient', 'patient_name_by', 'allow_discharge_despite_unbilled_services',
+		for key in ['collect_registration_fee', 'link_customer_to_patient', 'patient_name_by',
 		'lab_test_approval_required', 'create_sample_collection_for_lab_test', 'default_medical_code_standard']:
 			frappe.db.set_default(key, self.get(key, ""))
 
diff --git a/erpnext/healthcare/doctype/inpatient_record/inpatient_record.py b/erpnext/healthcare/doctype/inpatient_record/inpatient_record.py
index 6a32aca..dc549a6 100644
--- a/erpnext/healthcare/doctype/inpatient_record/inpatient_record.py
+++ b/erpnext/healthcare/doctype/inpatient_record/inpatient_record.py
@@ -158,7 +158,7 @@
 
 
 def validate_inpatient_invoicing(inpatient_record):
-	if frappe.db.get_default("allow_discharge_despite_unbilled_services"):
+	if frappe.db.get_single_value("Healthcare Settings", "allow_discharge_despite_unbilled_services"):
 		return
 
 	pending_invoices = get_pending_invoices(inpatient_record)
diff --git a/erpnext/healthcare/doctype/inpatient_record/test_inpatient_record.py b/erpnext/healthcare/doctype/inpatient_record/test_inpatient_record.py
index 70706ad..e8a9444 100644
--- a/erpnext/healthcare/doctype/inpatient_record/test_inpatient_record.py
+++ b/erpnext/healthcare/doctype/inpatient_record/test_inpatient_record.py
@@ -40,6 +40,31 @@
 		self.assertEqual(None, frappe.db.get_value("Patient", patient, "inpatient_record"))
 		self.assertEqual(None, frappe.db.get_value("Patient", patient, "inpatient_status"))
 
+	def test_allow_discharge_despite_unbilled_services(self):
+		frappe.db.sql("""delete from `tabInpatient Record`""")
+		setup_inpatient_settings()
+		patient = create_patient()
+		# Schedule Admission
+		ip_record = create_inpatient(patient)
+		ip_record.expected_length_of_stay = 0
+		ip_record.save(ignore_permissions = True)
+
+		# Admit
+		service_unit = get_healthcare_service_unit()
+		admit_patient(ip_record, service_unit, now_datetime())
+
+		# Discharge
+		schedule_discharge(frappe.as_json({"patient": patient}))
+		self.assertEqual("Vacant", frappe.db.get_value("Healthcare Service Unit", service_unit, "occupancy_status"))
+
+		ip_record = frappe.get_doc("Inpatient Record", ip_record.name)
+		# Should not validate Pending Invoices
+		ip_record.discharge()
+
+		self.assertEqual(None, frappe.db.get_value("Patient", patient, "inpatient_record"))
+		self.assertEqual(None, frappe.db.get_value("Patient", patient, "inpatient_status"))
+
+
 	def test_validate_overlap_admission(self):
 		frappe.db.sql("""delete from `tabInpatient Record`""")
 		patient = create_patient()
@@ -63,6 +88,13 @@
 			inpatient_occupancy.invoiced = 1
 		ip_record.save(ignore_permissions = True)
 
+
+def setup_inpatient_settings():
+	settings = frappe.get_single("Healthcare Settings")
+	settings.allow_discharge_despite_unbilled_services = 1
+	settings.save()
+
+
 def create_inpatient(patient):
 	patient_obj = frappe.get_doc('Patient', patient)
 	inpatient_record = frappe.new_doc('Inpatient Record')
@@ -78,6 +110,7 @@
 	inpatient_record.scheduled_date = today()
 	return inpatient_record
 
+
 def get_healthcare_service_unit():
 	service_unit = get_random("Healthcare Service Unit", filters={"inpatient_occupancy": 1})
 	if not service_unit:
@@ -105,6 +138,7 @@
 		return service_unit.name
 	return service_unit
 
+
 def get_service_unit_type():
 	service_unit_type = get_random("Healthcare Service Unit Type", filters={"inpatient_occupancy": 1})
 
@@ -116,6 +150,7 @@
 		return service_unit_type.name
 	return service_unit_type
 
+
 def create_patient():
 	patient = frappe.db.exists('Patient', '_Test IPD Patient')
 	if not patient: