[cultur3]

I might be losing my mind…or I might be seeing conflicting MCQs regarding NFP hostitals and bad debt? One answer says

“*****Nongovernmental not-for-profit hospitals deduct charity services, bad debt,***** contractual adjustments, and policy discounts from gross patient service revenues to determine net patient service revenues.

$775,000 – $25,000 – $15,000 – $70,000 = $665,000″

And the other answer says

“Total revenues, gain, and other support will include the following:

Net patient service revenue $500,000

Less Charity care 100,000 $400,000

---

Other revenue 80,000

Net assets released from

restrictions used for

operations 50,000

---

Total $530,000

========

Charity care does not qualify for recognition as revenues in the financial statements. These are services provided without expectation of payment. ******The bad debt expense would not affect the patient service revenue reported by a private not-for-profit hospital.******* In contrast, uncollectible patient accounts would reduce patient services revenues reported by governmental hospitals.”

Plz help SOS

F 83 4/09/16
A 85 6/10/16
B 81 7/19/16