Valuation & Financial Statement Presentation of Charity Care & Bad Debts by Institutional Healthcare Providers

November 2006 Valuation & Financial Statement Presentation of Charity Care & Bad Debts by Institutional Healthcare Providers Health care organizations must be able to clearly distinguish between charity care and bad debt. Current reporting practices for charity care are inconsistent and lead to confusion about the amount and nature of charity care provided. Non-profit health care provider organizations are especially under scrutiny since their tax-exempt status is tied to the amount of charity care provided. By adding additional clarity to the classes of unreimbursed care provided, health care organizations and their stakeholders can better tell the difference between . . .