News Report | April 8, 2018
New 2018 Accounting Standard Limits What Health Care Provider Organizations Can Report As ‘Bad Debt’
Starting January 1, 2018, public and some non-profit health care provider organizations began using a new accounting standard that changes how they report revenue and bad debt. Under the new standard, bad debt expense is not reported as a separate line item. Instead, the amount reported as net revenue will reflect price concessions demanded by third-party payer contracts (and managed care organizations), and will reflect an “implicit” price concession for the amount of the bill that a consumer is considered unlikely to pay.
Currently, health care provider organizations report revenue as the amount billed for the service, less . . .