Ratio of Cost to Charges
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An uninsured patient receives services with charges of $5,000 from a hospital. The hospital staff bills the patient $1,000 and records $4,000 as charity care. If the hospital's ratio of cost to charges is 50%, what amount would the hospital recognize as charity care in Schedule H of IRS Form 990?
A. $5,000
B. $2,000
C. $1,000
D. None of the Above
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Solution Summary
This solution provides the correct answer with explanation to the ratio of cost to charges question presented. Includes 1 reference.
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The correct answer would be $1,500, which isn't listed, so D is the correct answer. When we have charity care, which are basically services provided free due to the patient's inability to pay, we start ...
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