17. What is a contractual adjustment?

a. An increase in a patient’s charges caused by revisions in the billing process utilized by a health care entity.

b. A year-end journal entry to recognize all of a health-care entity’s remaining receivables.

c. A reduction in patient service revenues caused by agreements with third-party payors that allows them to pay a health-care entity based on their determination of reasonable costs.

d. The results of a cost allocation system that allows a health-care entity to determine a patient’s cost by department.