Net Patient Revenue (NPR)

The total revenue generated by a healthcare facility from patient services, minus deductions such as discounts, contractual adjustments, and charity care.

 

Gross Patient Revenue:

The total income generated by a healthcare facility from patient services before any deductions.

 

Contractual Adjustments:

Reductions in billed charges agreed upon in contracts with insurance providers, reflecting the difference between the billed amount and the negotiated rate.

 

Charity Care:

Uncompensated medical services provided to individuals who are unable to pay, typically due to financial hardship.

 

Bad Debt:

Amounts deemed uncollectible from patients who are unable or unwilling to pay their medical bills.

 

Revenue Cycle Management:

The process of managing the financial aspects of patient care, including billing, payments, and revenue generation.

 

Charge Description Master (CDM):

A comprehensive list of the billable services, procedures, and supplies provided by a healthcare facility, each associated with a specific charge.

 

Payer Mix:

The distribution of patients and their respective insurance providers, impacting the overall revenue composition of a healthcare facility.

 

Discounts and Allowances:

Reductions in the standard charges offered to patients or insurance providers, often as part of negotiated agreements.

 

Accounts Receivable:

The total amount of money owed to a healthcare facility for services rendered but not yet collected.