Question

Which health care accounts receivable (AR) items are essentially different from the same AR items in other business organizations? Choose all that apply. Allowances are permitted to restate accounts receivable. The amount of charges billed to patients is often settled for substantially less. Allowances are recommended when an indigent patient is charged less. Allowances include courtesy, charity, and contractual and doubtful accounts

Answer 1

Net patient service revenue:

= Gross patient service revenue – Contractual allowances – Charity care – Provision for doubtful debts

The above is the formula for calculating the Net patient service revenue.

Hence, correct option is “Allowance include courtesy, charity, and contractual and doubtful accounts”