Contractual Adjustments That Arise from Differences Between the Gross Charge

question 16

Multiple Choice

Contractual adjustments that arise from differences between the gross charge for patient services and the amount paid by a third party payor are reported as:

• A) Deductions from gross patient revenue in arriving at net patient revenue.
• B) Disclosures in the notes to the financial statements.
• C) Either deductions from gross patient revenue or disclosure in the notes, depending on the dollar amount of the adjustments relative to billings.
• D) Bad debt expense.

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Definitions:

Weber Fraction Values

Measures that quantify the smallest change in a stimulus that can be perceived, based on Weber's Law, which relates to the just noticeable difference in sensory perception.

Sensory Modalities

Various forms of senses through which living organisms perceive the world, such as sight, sound, smell, taste, and touch.

Detecting Pain

The physiological and psychological process by which organisms recognize and respond to stimuli that are noxious and potentially harmful.

Jnd

The minimum difference in stimulation that a person can detect 50% of the time, also known as the just noticeable difference.