Healthcare
Medicare Cost Report Settlement (Payable)
Recording a liability when a government audit determines the hospital was overpaid in the prior year.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Patient Service Revenue (Adjustment) | Revenue (-) | 20,000.00 | - |
| Due to Third-Party Payers (Govt) | Liability (+) | - | 20,000.00 |
💡 Accountant's Note
Government payers (Medicare/Medicaid) pay 'interim' rates. At year-end, a 'Cost Report' is filed. If you were overpaid based on actual costs, you must record a liability to pay it back.
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