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How is net patient service revenue on a hospital’s operating statement calculated? |



The operating statement is a key financial report that every hospital needs to produce. The purpose of the operating statement is make it easier for investors, creditors and other stakeholders to gauge how much money your organization has coming in and what expenses are incurred each year.
The process used calculating net patient service revenue varies by hospital but typically involves taking an accounting of all unpaid medical bills from patients who received care at the facility, subtracting those amounts from total incoming revenues and dividing that number into costs associated with caring for patients (as well as interest on any borrowed funds). 」

The “what is the new terminology now employed in the calculation of net patient service revenues” is a question that has been asked by many people. The answer to this question will be given below.

How is net patient service revenue on a hospital's operating statement calculated? |

The amount of gross patient income minus total contractual allowances and discounts is known as Patient Service Revenue (net of contractual allowances and discounts). All contractual allowances, discounts, and charity care are subtracted from total patient income to arrive at this figure.

So, how do you figure the net patient revenue?

revenue from net patients This is computed in healthcare management by deducting expenditures from inpatient and outpatient revenue services.

What is net income in healthcare, for example? Net income is made up of net operational income as well as investments. Exclude profits and losses that are out of the usual. Indemnity fee for service: Insurance benefits paid to the recipient in cash, with a charge for each service rendered.

People may wonder how charitable care is handled on the income statement.

Charity care is offered to patients who are unable to pay for their treatment. Because net revenues are disclosed, charity care is not reflected on the income statement. On the income statement, bad debt losses are shown as an operational expenditure.

Is charity care accounted for on the income statement as an expense?

Bad debts are reported as an expenditure since they are not considered a deduction from revenue. Charity care and community service fees are still considered expenses and recorded in the relevant expense category.

Answers to Related Questions

Why should cash flow be prioritized above net income?

Although both are significant, cash flow is typically a better indicator of a company’s success than net income. Because it is simple to verify the amount in the checking account at the beginning and end of the month – the difference should match your net cash flow – net cash flow is also more difficult to “manipulate.”

What exactly is Npsr?

The Net Patient Care Service (NPSR) is the amount received by the hospital after deducting charity care, discounts, and contractual adjustments from the total health care services reimbursed.

What does it mean to have net revenue?

The entire amount of money you generated from sales minus your direct costs is your net revenue. Definition in its whole form. Price reductions, refunds, and direct expenses are all factored into net revenue. Knowing your net revenue might assist you in determining which discounts are effective in your company.

What are the benefits of financial statements in healthcare?

To best understand the health of their business, all business owners should evaluate their financial statements on a regular basis and with care. The most essential benefit of examining your company’s financial accounts is that it allows you to make strategic choices that will help you develop and profit in the long run.

What is a healthcare income statement?

The Income Statement is a report that shows how much revenue a facility earned over a specific time period, whereas the Balance Sheet shows the company’s position at a specific point in time (usually a year or some portion of a year). It displays the costs and expenditures incurred in generating income.

What role do balance sheets play in the healthcare industry?

A balance sheet may assist guide future choices by providing a basic overview of an organization’s financial health and a picture of its stability. Physicians must be able to analyze and analyse balance sheets in order to identify how well their organizations are allocating money and managing risks.

What exactly is revenue?

The money gained from standard company operations, including discounts and deductions for returned products, is referred to as revenue. It is the sum on the top line, or gross revenue, from which expenditures are removed to arrive at net income. Formula for calculating sales revenue

What role does financial data play in healthcare?

In making management decisions, both statistical and financial reporting are employed. Hospitals will have the information they need to manage their product—health care—in the most cost-effective and efficient way possible thanks to the marriage of medical and financial data.

Who is eligible for charitable care?

Financial Eligibility—Income: If your yearly gross income for the 12 months before your hospitalization was not more than 200 percent of the federal poverty threshold, which in 2018 is $24,280 for a single person, you will be qualified for full Charity Care coverage.

What’s the best way to discuss expenses?

An expenditure is the cost of an asset that a firm uses in its operations to generate revenue. To put it another way, a cost is the utilization of assets to generate revenue. It’s worth noting that I didn’t indicate how much money was spent to drive sales. Expenses are incurred when an asset is depleted, not when cash is disbursed.

What is the difference between income from patient services and revenue from other sources?

What’s the difference between income from patient services and revenue from other sources? Patient services income comes from patients directly, but additional sources of revenue include parking fees, non-patient food services, office and concession rents, and so on.

What is the difference between net patient service revenue and gross chargemaster revenue?

Net revenue shows the amount of money anticipated to be received from the provision of patient services. Gross revenue is based on chargemaster pricing. When a patient has the capacity to pay but does not, this is referred to as bad debt. This is another another deduction noted in the income statement’s revenue column.

Is there a difference between net income before and after taxes?

Net income is the remaining amount of earnings after all deductions from gross pay, such as payroll taxes, garnishments, and retirement plan contributions, have been made. For example, suppose a guy earns $1,000 per month and has $300 deducted from his income.

What constitutes a household’s annual income?

The total gross income of all members of a home is referred to as household income. Individuals must be 15 years old or older, and they do not have to be related to make up your family income. It’s commonly used as a measure of a community’s or city’s standard of living.

What is the minimum income to be eligible for a health insurance subsidy?

If you earn up to four times the federal poverty level, you may be eligible for a subsidy. For an individual, this equates to $47,000, and for a family of four, it equates to $97,000. If you income less than $29,000 per year as an individual or $60,000 per year as a family of four, you may be eligible for both subsidies.

How do you calculate net income?

Sales minus cost of products sold, selling, general and administrative expenditures, operating expenses, depreciation, interest, taxes, and other expenses equals net income (NI), also known as net profits. It is a valuable figure for investors to determine how much income surpasses an organization’s costs.

What are your options for generating operational income?

Operating income formula

  1. Total Revenue – Direct Costs – Indirect Costs = Operating Income. OR.
  2. Operating income is calculated as Gross Profit – Operating Expenses – Depreciation – Amortization.
  3. Net Earnings + Interest Expense + Taxes = Operating Income. Calculation of a sample.
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Personal Finance

Instant Money Transfers: How to Speed Up Your Financial Transactions?




People today are no longer limited to using traditional banking methods and payment options like cash or checks for their financial transactions. With digital payment options becoming increasingly popular, money transfers have become easier. However, while these solutions offer convenience, they only sometimes guarantee a speedy transaction of funds from one party to another. If you need an instant transfer solution that allows you to move your funds without any hassles quickly, keep reading. Here are some tips to help you get started with an instant money transfer:

Find a Trustworthy Money Transfer Provider

Finding a trustworthy money transfer provider is paramount in ensuring your money’s safe and efficient transfer. Start by researching different providers, particularly their reputation, customer reviews, and transaction security protocols. The team at Paysend can help you send money to the Philippines from the USA in just a matter of seconds. A reliable provider should have a robust security framework to guard against fraud and hacking attempts. Additionally, consider the speed of their service, the fees they charge, and the exchange rates they offer.

Some providers may offer attractive transfer rates but compensate with hidden charges, so read the fine print. Customer service is another important factor; a good provider will have a responsive and knowledgeable support team to promptly address any issues or concerns. Regulatory compliance is also crucial – ensure the appropriate financial authorities regulate the provider. Remember, a trustworthy provider prioritizes the security and satisfaction of its customers above all else.

Select Your Preferred Payment Method

Choosing your preferred payment method is a critical step in instant money transfers. Several payment methods are available, and the best choice often depends on one’s circumstances and preferences. The most common payment options include bank transfers, debit or credit cards, and digital wallets. Bank transfers, while reliable, may provide a different speed than some users require. Debit or credit card payments are typically faster but may carry higher fees.

Digital wallets like PayPal or Apple Pay offer speed and convenience, allowing you to transfer funds digitally without requiring bank account information. The factor to consider here is not just the convenience of the payment method but also its transaction speed, security, and associated charges. Always select a payment method that suits your needs regarding these factors.

Sign Up for an Account

Once you have selected the ideal payment method and provider, it is time to sign up for an account. Most providers will require personal information such as your name, address, email ID, and phone number, so make sure the details you provided are accurate. You might also be asked to supply additional documents, such as identification proof and bank statements, to verify your identity.

Sometimes, you may need to link your bank account with the transfer provider’s platform; read through their documentation carefully to understand what steps you need to take. Once the registration process is complete, you can access and use the money transfer service for quick transfers.

Initiate the Money Transfer

Most providers will require you to register on their platform with valid ID documents before proceeding. Enter all the necessary details correctly and accurately, including recipient information and account numbers. Additionally, make sure that you double-check the amount of money being transferred and the associated fees.


Confirm everything is correct before hitting ‘Send’ to avoid costly mistakes or delays in transfer processing. You should receive an email or text message confirming the transfer with your transaction details, including the recipient’s account information and a tracking number. You can use this tracking number to monitor the progress of your money transfer.

Complete the Money Transfer Process

This usually requires providing basic information such as the recipient’s name, address, and contact details. Depending on your provider, you may also need to specify what currency you’re sending and offer additional security authentication. Once this is done, enter the amount you wish to transfer, verify the transaction details, and approve it. After that, your money should be on its way to the recipient’s account immediately.

Some providers offer extra features such as tracking services or reminders for upcoming transfers for added security and convenience. These features can come in handy when sending payments regularly or tracking the status of a transaction. Additionally, look out for any special offers, discounts, or rewards available to loyal customers. Many money transfer providers offer these incentives as a way of showing appreciation and encouraging loyalty among their customers.

Monitor the Status of Your Transfer

Most providers will allow you to monitor the progress of your transfer in real time. Some may even send notifications via email or text message when the money reaches its destination. If you sense any delays, contact customer support for assistance. Money transfers can take a few minutes to several hours, depending on the selected payment method and recipient country.


Finally, always save all records related to your money transfers, including emails and receipts. If there are any discrepancies or disputes, you can refer to these documents for clarification. With the help of a reliable provider and modern payment methods like digital wallets, you can now easily make instant money transfers. So get started today and experience the convenience of instant money transfer services.

Receive and Verify the Transaction

Once the money has been transferred, you or the recipient should receive a notification of completion. At this point, ensuring the transaction was successful, and all details were correct is important. For security purposes, some providers may ask for additional verification from either party to avoid fraud and other malicious activities. This process could include providing a digital signature or proof of identity.

Once the verification is complete, the funds should be available in the recipient’s account almost immediately. If you have any concerns, contact customer support to get assistance or help resolve any issues. Remember that reliable providers prioritize customer satisfaction and security above all else. With these steps, you can now easily and safely transfer money with instant money transfer services.

Nowadays, it’s more important than ever to employ secure digital payment methods in your daily financial transactions. That’s why researching which providers offer the best services regarding speed, security, transaction fees, and customer support pays off. With the right provider, you can have peace of mind knowing that your money transfers will be conducted instantaneously and securely.

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Personal Finance

The Ins and Outs of Getting a Loan With Bad Credit




If financial difficulties or uninformed decisions have left you with bad credit, you may not know where to turn for a loan. While borrowing money with a low credit score may take additional research or work, it’s likely still within your reach.  

Many lenders offer bad credit loans for people who need extra cash but may not have the best credit background. Applying for a loan with bad credit may feel intimidating, but the following considerations could make the process easier.

Start by Checking Your Credit

Before you begin shopping for loans, check your credit report. Some creditors require specific scores for each loan product, even those designed for bad credit, so knowing your score saves you time.

It’s also important to check your credit report for errors that may drag your score down and limit your loan options. You can access this information from Equifax and TransUnion for free online.

Compare Your Options

While a lower credit score likely disqualifies you from some personal loans, you may still have many options. Some lenders offer loans specifically for people with low credit scores who struggle to qualify for other options.


Bad credit loans may require a deposit or other fees, have higher interest rates than other loans, or include income requirements. However, they may also offer a wide range of payment terms and options like online portals that make managing your loan easier. With some research, you could find the right fit for your circumstances.  

Whenever possible, take advantage of loan prequalification. Many lenders allow you to check your potential eligibility for a loan by providing personal and financial information. They use that to run a soft credit check, which doesn’t affect your credit score. If you pre-qualify, they’ll provide information about possible rates and terms. You could complete prequalification forms for multiple loans to help you find your best option.

Improve Your Application

Some financial decisions improve your loan eligibility. A friend or family member with better credit may agree to co-sign your loan. In that case, their financial information influences your eligibility for a loan.

Cosigners take on substantial risk. If you fail to repay your loan, your cosigner becomes responsible. Likewise, issues with the loan could hurt their credit score and put a strain on your interpersonal relationship.  


If multiple lenders have declined your applications for unsecured loans, consider a secured loan instead. Secured loans require collateral, like a deposit, car, or other property. If borrowers don’t repay their loans, lenders may seize the collateral. Lending institutions don’t take on as much risk with secured loans as unsecured loans so they may have more lenient credit requirements for borrowers.

Avoid Scams

Unfortunately, fraudulent lenders often exploit consumers who have limited loan options. Before providing a lender with any personal or financial information, ensure they’re legitimate. Otherwise, you risk having your identity stolen or paying fees for a loan you never receive.

Be wary of anyone offering guaranteed approval or soliciting your business via cold calls. Always verify loan servicers’ contact information and check their reviews on trusted third-party websites.

The Bottom Line

If you have bad credit, you could still qualify for a personal loan. Remember to check your credit score, investigate your options, and confirm a lender’s legitimacy before applying. If you still struggle to qualify, you may need a cosigner or collateral to boost your application.

By taking some extra steps, you can make getting a loan easier and safer.

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Personal Finance

Four Ways to Save on Fuel in 2023





From increasing energy bills to price hikes at online stores and supermarkets, all individuals globally feel the need to make their money to go further and do more. And there has never been a perfect time to know how to save more on fuel than now.

From getting fuel cards with great deals and driving more efficiently to using telematics and keeping your vehicle in good condition, here are different ways to save money on fuel.

Get a Fuel Card

A fuel card can provide you with more than the ability to purchase fuel from a good station. With a fuel card, you can control your business’s fuel spend by getting discounts on fuel pump rates, setting spending limitations, and increasing your cash flow – all enabling you to save a significant amount of money.

Fuel cards allow savings on fuel, which means that the price you pay is always less compared to the one indicated on the fuel pump machine. With numerous fuel cards available out there, find the right partner with excellent deals.

Use Telematics/Advanced Route Planning

Digital telematics solutions come with real-time GPS tracking as well as remote automobile diagnostics helping individuals and company owners to thoughtfully plan the most efficient routes depending on different data points. A high-quality telematics solution also integrates with route optimisation systems to plan the most efficient routes and offer turn-by-turn directions and navigations.


Well-planned routes allow automobiles to get from point C to D efficiently, significantly minimising time spent and distance covered, saving on fuel. Heavy-duty automobiles can avoid routes with steep hills. You can also re-plan a hilly route for a light and medium-duty automobile.

But as you do that, ensure the route you choose doesn’t take your drivers too far. Side-step all congested routes and those that require excessive stopping and starting or cause unnecessary idling.

Drive More Efficiently

One of the proven ways to save on fuel is to manage driver behavior. Whether you’re a driver or fleet manager, you need to keep yourself or drivers accountable for how they utilize their fuel cards.

You should also reinforce ways to conserve fuel through safety training – many of the behaviors that are taught as techniques of safe driving, such as driving more efficiently. Most businesses and individuals use telematics to control driver behavior, such as harsh accelerating or braking, to maximize return on investment by minimizing fuel spend.

Keep Your Vehicle in Good Condition

If you keep your automobile in excellent condition by servicing it in line with the guidelines of the manufacturer, it’ll help you save on fuel costs. Fix any faults quickly to make sure your vehicle is operating efficiently.


When you keep your car in excellent condition, you’ll enjoy numerous benefits, saving fuel being one of them. A vehicle that isn’t serviced based on the guidelines of the manufacturer can increase the consumption of fuel by approximately 50%.

Integrate these four ways into your automobile’s daily activities, and you’ll be able to save on fuel.

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