What is the financial definition of "patient balance"?

The term "patient balance" refers to the difference between the total amount billed for services rendered and the payments that have been received. This definition captures the essence of what is owed by the patient after payments, such as insurance reimbursements or co-pays, have been deducted from the total charges.

In a healthcare setting, when a service is provided, a bill is generated for the total cost of those services. However, patients often have insurance coverage that may pay a portion of that bill, leaving what remains as the patient's financial responsibility. Thus, the patient balance is a critical figure for both the healthcare provider and the patient, as it indicates what the patient still owes after all payments have been accounted for.

Understanding this concept is essential for billing and collections processes, as it helps ensure that healthcare providers accurately track and manage outstanding amounts owed by patients.