In the Medicare program, the percentage difference between a provider’s billed fee and the Medicare allowed charge.

Method of compensation in which institutional providers are paid for the actual incurred costs of covered medical services plus payment for bad debts, cost of charity cases, and a profit.

1. Dollar amount a hospital bills an outlier case based on the itemized bill. 2. Dollar amount assigned for a medical service and billed by a health care provider to the patient’s financial account statement. 3. In Medicare fraud, unbundling or exploded charges (e.g., to bill a multichannel set of laboratory tests to appear as if the individual tests had been performed).

Discounted fee for medical services for indigent or medically indigent patients. See also medically needy (MN).

Free or discounted fee for medical services provided to the poor or individuals unable to pay. Because some indigent patients are not eligible for federal or state programs, the costs covered by Medicaid are usually recorded separately from indigent care costs. See also charity allowance; medically needy (MN). Also called indigent care or indigent medical care.

Group of patient medical records maintained by the physician. Each record documents the patient’s treatment in progress notes, diagnostic and therapeutic procedures or tests and their results, findings and conclusions from special examinations, correspondence from other providers, specialists, or consultants, medications, surgical operations, and other reports pertinent to the patient’s care.

Reference page developed by a medical practice that acts as a shortcut to locating diagnostic codes for conditions commonly seen by a physician specialist. See encounter form.