Contractual Adjustments A Portion of A Hospital's Revenue Is Collectible From Third Party Payors, Such As The Philhealth and
Contractual Adjustments A Portion of A Hospital's Revenue Is Collectible From Third Party Payors, Such As The Philhealth and
Contractual Adjustments
A portion of a hospital’s revenue is collectible from third party payors, such as the Philhealth and
other health insurance providers.
A Contractual adjustment is the difference between what the hospital considers a fair price for a service
rendered versus an agreed upon amount for the service with the insurance company.
Journal Entries
Account Receivable- patients 200,000
Account Receivable –Philhealth 1,000,000
Patient Service revenue 1,200,000
To accrue patient service revenue