They reflect the site's action to remove a financial barrier for indigent patients prior to their seeking or receiving service. Other self pay adjustments include all bad debt and charity care adjustments taken or granted to self-pay patients who were initially charged a full, discounted, or partial fee but who subsequently were either unwilling or unable to pay the amounts charged. Sites reporting on a cash basis recognize revenue as it is received. Sites reporting on an accrual basis recognize revenue as it is earned. These sites are to report net revenue, meaning gross charges minus contractual allowances, adjustments and bad debt on line 2.
Sites reporting on a modified accrual basis use some combination of the cash and accrual methods.
The scope of patient service activity reported on both tables is identical. If the cash basis accounting method is used, the patient service revenue reported on table 5 will equal the total amount collected that is reported on table 4. If the accrual method is used, the patient service revenue reported on table 5 should be different from either the total gross charges or amount collected that is reported on table 4. Revenue reported on table five is to be classified by the source from which they were directly received. In order for funds to be classified as federal, the sponsor must be the grantee and be receiving funds directly from the federal government.