What is defined as the total amount collected by a facility for services billed?

The term that describes the total amount collected by a facility for services billed is reimbursement. Reimbursement refers specifically to the payment that healthcare providers receive from insurance companies or patients for the services rendered. This amount is typically determined after the services have been billed and is influenced by various factors including insurance agreements, patient responsibility, and any negotiated rates between the provider and payers.

In the context of healthcare finance, this is a crucial concept because it reflects the actual revenue received by the facility. Understanding reimbursement helps healthcare administrators manage cash flow and financial forecasting effectively. It’s important to distinguish reimbursement from other financial terms such as charges, which refer to the total amount billed to patients or payers regardless of what is actually collected, and contractual allowance, which is a reduction in the billed amount based on agreements with payers.