What is referred to as a practice's operating expenses?

Operating expenses refer to the costs that a practice incurs through its normal business operations. This includes expenses related to day-to-day activities such as rent, utilities, salaries, and supplies needed for providing medical services. Accounts Payable represents the amounts that a practice owes to its suppliers and creditors for goods and services received, which are necessary for the operation of the business. By managing accounts payable efficiently, a practice can ensure that it has adequate cash flow to cover its operational costs and maintain an effective revenue cycle.

The other options reflect different aspects of a practice's financial health. Accounts Receivable refers to the money that is owed to the practice by patients or insurers for services rendered, while the Revenue Cycle encompasses the entire process of managing claims, payment collections, and billing procedures. Net Profit is the amount of money that remains after all expenses have been deducted from revenue, indicating the overall financial performance rather than the specific operational costs.