What term refers to an account receivable that cannot be collected by the provider or a collection agency?

The term referring to an account receivable that cannot be collected by the provider or a collection agency is 'Bad Debt.' This term is used in accounting and finance to represent amounts owed to a company that are deemed to be uncollectible and are therefore written off as an expense. When an account is considered bad debt, it signifies that the money is no longer expected to be collected, often because the customer has defaulted on payment or is unable to pay.

Understanding this term is crucial in Revenue Cycle Management, as it directly affects financial reporting and profitability. In practice, bad debt must be monitored closely, as high levels of bad debt can indicate issues in the billing and collection processes, potentially leading to cash flow problems for healthcare providers and other businesses.

In this context, while 'Write-off' also refers to accounts removed from the accounts receivable due to being uncollectible, it is a process rather than a classification of the debt itself. Similarly, while 'Uncollectible Account' seems like a fitting descriptor, 'Bad Debt' is the more commonly used term within the industry, providing clarity in categorization. Deferred Revenue, on the other hand, pertains to payments received for services not yet performed, making it unrelated to the concept of