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Problem 1: Which of the following are unique to the reporting of revenue by a health care entity?
Option 1: Charity care must be reported even if the entity does not anticipate seeking collection.Option 2: The patients pay for little of the services, and significant discounts are common.Option 3: Reported bad debt expenses will increase significantly under new rules.Option 4: Standard charges are recorded as the revenue and receivable balances.
Problem 2: A health care entity provides services to a patient. Those services have a standard charge of $76,000. The insurance company that represents the patient has a contract with the entity that leads to a $20,000 reduction in that charge. That reduction is referred to by which of the following labels?
Option 1: Standard legal hospital abatement amountOption 2: Implicit price concessionOption 3: Discounted health care monitoring feeOption 4: Explicit price concession
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