In this module, we focus on how healthcare providers recognize and report revenue from patient services. We examine the components of net patient service revenue, the differences between gross charges and net revenue, and the various adjustments providers make as part of the revenue cycle. Learners will explore how organizations calculate amounts due to or from payors, how bad debt expense is reflected, and how these concepts appear in a provider’s financial statements.

In this module, we explore how healthcare services are paid for within the third‑party payor system. We discuss the overall concept of insurance and the factors that shape insurance risk, including adverse selection and moral hazard. Learners will also examine key reimbursement methodologies used under fee‑for‑service arrangements, the incentives created by each method, and how these structures shift financial risk between payors and providers.

In this final module, we take a broad look at how healthcare organizations communicate their financial activity through external financial statements, including the use of combined statements and the general treatment of charitable contributions and donor restrictions. We provide an overview of how different types of healthcare organizations report financial information, how providers determine net patient service revenue, and how common reimbursement arrangements shape financial outcomes. We also touch on major fee‑for‑service methodologies, the incentives they create, and the key issues and stakeholders that influence today’s healthcare financial environment. The module concludes with a final quiz and an assignment to help you synthesize and apply what you have learned throughout the course.