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There Are Three Main Reasons Why a Hospital Does Not

question 23

Essay

There are three main reasons why a hospital does not receive the full amount that they normally charge for a room: 1)contractual adjustments arising from transactions with third-party payors,2)charity service provided to indigent patients,and 3)bad debts.Compare the accounting treatment for the three reasons listed.


Definitions:

Ointments

Ointments are thick, greasy medicinal substances applied topically to the skin to provide moisturization, protection, or deliver specific medication.

Lotions

Liquid or semi-liquid topical preparations used for skin care, intended to moisturize, protect, or medicate the skin.

Chemotherapeutic

Relating to chemotherapy, the use of chemical substances to treat disease, especially cancer.

Infectious Organism

Microorganisms such as bacteria, viruses, fungi, and parasites that can cause diseases or infections.

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