Adjustment
An adjustment is a change a provider posts to a patient account that increases or decreases the balance without a payment, such as a contractual write-off, courtesy discount, or correction. Accurate adjustments reconcile billed charges with what payers actually allow.
What is an adjustment?
An adjustment is a change posted to a patient account that raises or lowers the balance without an actual payment changing hands. Common examples include contractual write-offs, courtesy or charity discounts, and corrections to a previously posted amount.
The most frequent type is the contractual adjustment, which removes the difference between the provider's billed charge and the lower amount a payer has agreed to allow under contract. It reconciles list-price charges with negotiated rates.
Why do adjustments matter?
Accurate adjustments keep account balances honest by reconciling what was billed with what payers actually allow, so the remaining balance reflects what is genuinely owed. Sloppy adjustments either overstate receivables or write off money that should have been collected.
For a surgery center, distinguishing a legitimate contractual write-off from a payer underpayment is critical. Posting an underpayment as a routine adjustment can quietly mask revenue that should have been appealed and recovered.
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