Far – difference answer for NFP Net patient service Fee

  • Creator
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  • January 8, 2018 at 2:57 pm #1690979
    setmefree
    Participant

    can someone verify this question for me? both becker and wiley exclude bad debt from the net paitient service fee calculation. who is right? please help

    Hospital, Inc., a not-for-profit entity with no governmental affiliation, reported the following in its accounts for the current year ended December 31:
    Gross patient service revenue from all services provided
       at the established billing rates of the hospital (note
       that this figure includes charity care of $25,000)           $775,000
    Provision for bad debts                                           15,000
    Difference between established billing rates and fees
       negotiated with third-party payers (contractual adjustments)   70,000
    What amount would the hospital report as net patient service revenue in its statement of operations for the current year ended December 31?

    A.
     
    $665,000
    Incorrect
    B.
     
    $680,000

    C.
     
    $705,000

    D.
     
    $735,000

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