For Hospitals,contractual Adjustments to 3rd Party Payers,such as Insurance Companies,are

question 37

True/False

For hospitals,contractual adjustments to 3rd party payers,such as insurance companies,are recorded with a debit to Contractual Adjustment expense and a credit to accounts receivable.

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Definitions:

Information Asymmetry

A situation in which one party in a transaction has more or superior information compared to another party.

Worker

An individual engaged in a specific activity or labor, especially for pay.

Employer

An individual or organization that hires and pays workers for their services or labor.

Economics

The social science that studies how individuals, governments, firms, and nations make choices on allocating scarce resources to satisfy their unlimited wants.