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Uncompensated care charges are defined as what?

Costs associated with bad debts only

Bad debt charges combined with charity care charges

Uncompensated care charges encompass both charity care and bad debt. This means that it includes the costs incurred by healthcare providers when they provide services to patients who are unable to pay (charity care) as well as the costs associated with patients who do not pay their bills after receiving care (bad debts). The definition emphasizes that uncompensated care represents a broader category of expenses that healthcare facilities absorb due to the inability of patients to settle their accounts.

The other options do not accurately capture this comprehensive view. While bad debt charges are a component of uncompensated care, they alone do not represent the full scope since charity care also plays a significant role. Definitions involving total patient revenue minus operating costs or expenses minus total revenue do not specifically relate to the notion of uncompensated care in terms of charity and debt, focusing instead on financial summaries rather than the direct financial impact of providing unsatisfied patient care.

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Total patient revenue minus operating costs

Expenses minus total revenue

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