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Preferred term

contractual adjustment  

Definition

  • Most health care providers participate in contracts with third-party payers that reimburse the provider less than the amount charged for services. The difference between established rates charged by a health care provider for services rendered to a patient and the amount actually paid for those services by a third party under a negotiated payment contract is recognized in the financial statements as a contractual adjustment. [Source: Encyclopedia of Health Care Management; Contractual Adjustments]

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URI

https://concepts.sagepub.com/social-science/concept/contractual_adjustment

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