The difference between a nurse practitioner's charge of $45 for an office visit and the insurance company's payment of $34 is:
a. A contractual allowance.
b. A profit.
c. A flat rate.
d. Revenue.
A
Because the amount that is allowed for an office visit is less than the amount that the NP charges, this is known as a contractual allowance or discount. If the amount allowed were more than what the NP charges, then a profit would be realized. All of the answers represent sources of revenue.
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