Contractual Adjustments That Arise from Differences Between the Gross Charge

Contractual adjustments that arise from differences between the gross charge for patient services and the amount paid by a third party payor are reported as:

A) Deductions from gross patient revenue in arriving at net patient revenue.
B) Disclosures in the notes to the financial statements.
C) Either deductions from gross patient revenue or disclosure in the notes, depending on the dollar amount of the adjustments relative to billings.
D) Bad debt expense.

Correct Answer:

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