Confusion in classifying bad debt and charity care, compounded by wide diversity in reporting practice, has muddied these aspects of the financial statement. This statement provides guidance on the correct way to measure and report these components of uncompensated care. In the new 990 Schedule H, the IRS refers to Statement 15 as the preferred practice for bad debt reporting.
View the Statement.
For multiple reprints of statement 15, please contact Dorothy Karmowski at (800) 252-HFMA ext. 387.