I’ve wondered about that. It goes for doctors too
Typically, a bill will be tendered and medicare will pay it partially. What happens to the accounting?
In theory, the unpaid remainder becomes a bad debt. On a corporate income tax form, bad debts are deductible to reduce income and thus taxes.
Do doctors and hospitals then pay taxes?
Businesses do mot pay any taxes. To cover any tax liability a business they may forsee they raisepricesso theircustomers pay the taxes. Look at taxes as if it was an employee of the company.