A Patient Was Admitted to an Acute Care Facility for Congestive

question 60

Multiple Choice

A patient was admitted to an acute care facility for congestive heart failure. The patient stayed in the facility for 3 days. The actual charges incurred were $6,500. The PPS rate is $5,500. The per diem rate is $1,500 per day. For this case, Medicare will most likely pay:

• A) $4,500
• B) $5,500
• C) $6,500
• D) None of the above

---

Definitions:

Accounts Receivable

Represents the money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Direct Write-off Method

An accounting method where uncollectible debts are directly removed from the accounts receivable balance when they are deemed irrecoverable.

Financial Reporting

The process of producing statements that disclose an organization's financial status to management, investors, and the government.

Accounts Receivable

Amounts receivable by a company from its clientele for products or services provided, awaiting payment.