Mercy for America, a private not-for-profit health care facility located in Durham, North Carolina, charged a patient $8,600 for services. It actually billed this amount to the patients third-party payor. The third-party payor submitted a check for $7,900 with a note stating that the reasonable amount is paid in full per contract. Which of the following statements is true?

The health care facility recorded the $700 as a contractual adjustment that it will not collect.

The third-party payor retained the $700 and will convey it to the health care facility at the start of the next fiscal period.

The patient is responsible for paying the remaining $700.

The health care facility will rebill the third-party payor for the remaining $700.