Explain the difference between Charity Care and Bad Debt in a healthcare environment.

Question

What are the financial implications of gross uncollectibles on the bottom line of the healthcare institution, and explain how these are recorded on the financial statements.

Answer 1

What is 'Charity Care' and where did you hear or see those words ... 'pro bono services rendered ...? not enough information to answer...

 

... Bad debt is an account receivable amount that is considered uncollectible by a company ... in any environment ... 

 

... Bad debt expense is a line item on the company's income statement ... it is recorded as an operating expense... 

 

... financial implications : ... bad debt write offs can result in an operating loss for the company ...