Dr. Smith’s medical practice received a partial payment from an insurance company for a patient's surgery, which was lower than the billed amount due to contractual agreements. How should the remaining balance be handled in the patient’s account?
The correct approach is to post the contractual adjustment as a write-off. This reflects the agreed reduction in the fee between the insurance company and the provider, ensuring that the financial records accurately reflect the owed amount. It's important not to bill the patient for this adjustment since it’s part of the contract between the provider and the insurer. Incorrectly giving a discount or writing off the entire charge instead of the contractual adjustment could lead to financial discrepancies or potential issues with insurance compliance.
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