What is a contractual adjustment?
a. An increase in a patient’s charges caused by revisions in the billing process utilized by a health care entity.
b. A year-end journal entry to recognize all of a health care entity’s remaining receivables.
c. A reduction in patient service revenues caused by agreements with third-party payors that allows them to pay a health care entity based on their determination of reasonable costs.
d. The results of a cost allocation system that allows a health care entity to determine a patient’s cost by department.
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