What is the economic rationale

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"Bad debt expense as a percentage of revenues was 4.4%, 20 basis points better year over-year but 80 basis points higher than the fourth quarter of 2016. As a reminder, bad debt expense rate typically increases sequentially in the first quarter due to the reset of patients' health insurance deductibles at the beginning of the year. As in prior years, we expect the bad debt rate to improve gradually throughout the year. Note that the year-over-year compare was also negatively impacted by the fact that our products business had a lower associated bad debt rate."

What is the economic rationale that the bad debt expense would be higher in the first quarter than in the later quarters?

Reference no: EM132431234

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