Contractual Adjustment is a part of the agreement in which the hospital has agreed to not charge any expenses because of the terms of the insurance company.
What is Contractual Adjustemement or Adjustment?
- Contractual adjustment is defined as the part of a patient's bill that should not be charged because of the billing agreements with the insurance company.
- The adjustment is also referred to as write-offs, in which the amount in the patient's bill is automatically adjusted in the cost of the procedure.
Thus, the provider expects to get a write-off or an adjustment based on the billing agreements of the insurance company.
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