Question

To determine the gross revenue for a department, you need to identify the charges for each service provided and which of the following?

a) Bad debt.
b) Allowances.
c) Number of units of care.
d) Insurance deduction rate.

Answer 1

The gross revenue for a department is determined by identifying the charges for each service provided and the number of units of care.

Step-by-step explanation:

To determine the gross revenue for a department, besides identifying the charges for each service provided, one must also consider the number of units of care. This refers to the quantity of services rendered, such as the number of patient visits or procedures conducted. It's not sufficient to simply know the price of services; the total volume of services sold greatly impacts the gross revenue calculation. Options such as bad debt, allowances, and insurance deduction rates may be relevant for net revenue calculations, but they are not directly used to calculate gross revenue.