Discuss the pros and cons of reporting contractual adjustments directly on the monthly financial reports at the departmental level. As a health care administrator how would you address this in your own organization? Solution in health care industry, contractual adjustment means is the bill of a patient which he has to pay for the service recieved from the hospital. in simple terms it part of a patient\'s bill that a doctor or hospital must write-off (not charge for) because of billing agreements with the insurance company. the manager will record all the transactions which are non cash transactions and amount will reimbursed by health insurance provider. all these payments are contingent in nature, they may or may convert into cash. we need to maintan all the transactions untill they were encashed. we need to record all the transactions, send the request of payments to concern parties, update them and recieve the payments and so on. it is so sensitive and confidential in nature..

1. Discuss the pros and cons of reporting contractual adjustments directly on the monthly financial
reports at the departmental level. As a health care administrator how would you address this in
your own organization?
Solution
in health care industry, contractual adjustment means is the bill of a patient which he has to pay
for the service recieved from the hospital. in simple terms it part of a patient's bill that a doctor
or hospital must write-off (not charge for) because of billing agreements with the insurance
company.
the manager will record all the transactions which are non cash transactions and amount will
reimbursed by health insurance provider. all these payments are contingent in nature, they may
or may convert into cash.
we need to maintan all the transactions untill they were encashed. we need to record all the
transactions, send the request of payments to concern parties, update them and recieve the
payments and so on. it is so sensitive and confidential in nature.