Which financial reporting concept applies to revenue that is expected to not be collected from patients?

The concept that applies to revenue that is expected to not be collected from patients is known as Bad Debt Expense. This accounting practice recognizes that not all revenue expected from patient services will be collected in full due to various reasons, such as insurance denials, patient insolvency, or failure to pay.

Bad Debt Expense reflects a realistic view of the financial situation of a healthcare provider by acknowledging the potential losses from accounts receivable. This ensures that the financial statements accurately portray the organization's income by only recognizing revenue that is expected to be realized, thereby providing a clearer picture of the financial health of the organization.

In contrast, other options describe different aspects of revenue recognition: Deferred Revenue refers to payments received for services not yet provided, Patient Service Revenues refers to the total income generated from patients for services rendered, and Unearned Revenue is similar to Deferred Revenue, indicating funds received ahead of service delivery. These concepts do not specifically address the expectation of non-collection from patients.