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Charity care qualification decision tree.(hfm TOOLBOX)

Some part of bad debt can be classified as charity care, according to 92 percent of the hospitals that responded to the 2005 PricewaterhouseCoopers charity care survey. This fact indicates that charity care numbers reported by hospitals may be underestimated and that bad debt numbers may be overestimated. Implementing clear policies and procedures will help hospitals correctly classify their patient receivables.

The charity care qualification decision tree is a graphic interpretation of the paths that a patient account can take toward final resolution and operates on the assumption that all fiscal activity will terminate in one of five "buckets": realized revenue, ...

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