What is the total amount that a facility bills for the services it renders?

The total amount that a facility bills for the services it renders is referred to as charges. Charges represent the list prices for the services provided, which include all treatment, care, and services a patient receives during their time in the facility. This figure does not necessarily reflect the actual money received by the facility after negotiations with payers (such as insurance companies) or any adjustments that might be applied.

Charges serve as a starting point in the billing process and are used for various purposes, including billing to patients and determining the expected revenue for services rendered. It is important to distinguish charges from reimbursement, which is what the facility actually receives after claims processing, contractual allowances, and any reductions due to negotiated rates with insurance providers.

Understanding charges is essential in revenue cycle management, as it allows facilities to track financial performance and ensure they are billing appropriately for the services provided.