A not-for-profit hospital had gross patient billings of $43 million,contractual adjustments of $8 million,and charity care of $1,500,000.The hospital also made a provision for bad debts in the amount of $1,000,000.How much should the hospital report as net patient service revenue?

Question

Quizplus · Accepted Answer

Net patient service revenue is calculated by subtracting contractual adjustments, charity care, and provision for bad debts from the gross patient billings:

$43 million - $8 million - $1.5 million - $1 million = $32.5 million

Therefore, the hospital should report $33.5 million as net patient service revenue.

A Not-For-Profit Hospital Had Gross Patient Billings of $43 Million,contractual