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?
D. None of the Above
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 ...
This solution provides the correct answer with explanation to the ratio of cost to charges question presented. Includes 1 reference.