Which term refers to the financial loss from unpaid medical bills?

The term that refers to the financial loss from unpaid medical bills is "bad debt." This represents amounts owed for medical services that providers are unable to collect after making reasonable efforts. Bad debt specifically applies to accounts for which patients or third-party payers are expected to pay but do not fulfill their financial obligation, leading to a direct loss for healthcare providers.

Charity care refers to the services provided for free or at reduced prices to patients who are unable to pay. Net revenue reflects the total revenue after deducting allowances for contractual adjustments and bad debt but does not directly address financial losses. Direct costs pertain to expenses that can be directly attributed to patient care but do not specifically encompass the losses resulting from unpaid medical bills. Understanding the distinction between these terms helps clarify the financial aspects of healthcare operations and the impact of unpaid bills on profitability.