.Bad debt is rising among some hospitals, largely driven by an increased burden on patients to cover the costs of care.
Bad debt refers to revenue that providers were expecting to receive from patients or payers, but did not end up collecting despite multiple attempts. Providers often write off these unpaid balances once they are deemed uncollectible.
Hospitals and health systems are working to mitigate the financial impact of bad debt by shoring up revenue cycle processes like claim denials and payment collection procedures.
Bad debt as a percentage of gross revenue had increased at a median 2.9% year over year, according to an analysis from consulting firm Kaufman Hall.