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There are three main reasons why a government hospital does not receive the full amount that it normally charges for a room: (1) contractual adjustments

There are three main reasons why a government hospital does not receive the full amount that it normally charges for a room: (1) contractual adjustments arising from transactions with third-party payors, (2) charity service provided to indigent patients, and (3) bad debts. Compare the accounting treatment for the three reasons listed

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