Healing Angel Hospital,operated by a religious organization,billed patients $13,000,000 for services rendered during the year ended June 30,20X3.The hospital realized cash of $10,700,000 from the patient billings because of the following reductions:
(1)contractual adjustments of $1,400,000 granted to private insurance companies and to the federal government;and
(2)uncollectible accounts receivable of $900,000.
On the statement of operations prepared for the year ended June 30,20X3,Healing Angel Hospital should report net patient service revenue of:

Question

Quizplus · Accepted Answer

Net patient service revenue is calculated by subtracting contractual adjustments and uncollectible accounts from the total billed amount: $13,000,000 - $1,400,000 - $900,000 = $11,600,000.

Healing Angel Hospital,operated by a Religious Organization,billed Patients $13,000,000 for Services