Hospital or Clinics have bad debts those balance physician office will move to collection agency, we are going to review how physician office will move the balance to collection and how it works. Bad Debts Bad debt is accounts receivable that will likely remain noncollectable and will be written off. Bad debt appears as an expense on the company's income statement, thus reducing net income. So we are moving the uncollectable balance to collection agency by adjusting off the balance from our books. How to find out the bad Debts Bad Debts can be considered in so many ways but in Medical Billing if we are unable to collect the debts for more than 120 days plus we are naming it as Bad Debts, we are just reviewing the general Medical Billing process its depend on hospital to hospital some hospital will calculate for every six months or one year so on. Bab Debt & Tax Some types of bad debts expense, whether business or non bu...