Bad Debt › Post Archive

Bad debt is the total cost of services incurred for services provided to patients who have not paid their bills and who have not demonstrated their inability to pay. This includes all unpaid obligations of patients who are unwilling to pay their bill, as well as though patients who would qualify for financial assistance (charity care), but either have not sought such assistance or failed to complete required bureaucracy. For self-pay patients, all or a portion of an unpaid bill can be considered as bad debt. For insured patients any portion fo the bill for which they are responsible but do not pay can be expensed as bad debt.