Bad Debt in Medical Billing
Bad debt refers to unpaid patient or insurance balances that the healthcare provider has been unable to collect and has written off as uncollectible.
Bad Debt in Medical Billing Explained
In medical billing, bad debt occurs when the provider cannot collect payments for services rendered, despite all efforts to bill the patient or insurance company. Once categorized as bad debt, the amount is usually written off as a loss in the provider’s financial records.
For example, after multiple attempts to collect payment for a procedure, a clinic writes off the outstanding balance as bad debt.
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