Computers in the Medical Office Chapter 10: Collections in the Medical Office McGraw-Hill Career Education

Importance of Collections Patients are paying a greater share of their medical bills Not all patients pay on time Practices must collect monies owed in a timely manner to maintain cash flow McGraw-Hill Career Education

Patient Collection Process Financial policy spells out how the practice handles Colleting copayments Collecting prepayment Overdue accounts Payment plans Payment for services not covered by insurance Charity cases McGraw-Hill Career Education

Laws Governing Collections Patient collections regulated by federal and state laws Insurance collections considered business collections McGraw-Hill Career Education

Laws Regulating Patient Collections Fair Debt Collection Practices Act of 1977 Telephone Consumer Protection Act of 1991 General guidelines No calls before 8 am or after 9 pm No threats or profane language Respect patient privacy No deception or violence McGraw-Hill Career Education

Collection Agencies Used by some practices to collect on large overdue accounts Once account is turned over to collection agency, the billing specialist no longer contacts the patient Usually paid on the basis of what they collect McGraw-Hill Career Education

Payment Plans Agreement between a patient and the practice Patient makes regular payments over a specific period of time Finance charges may be applied McGraw-Hill Career Education

Uncollectible Accounts If collection attempts are exhausted, practice may write-off debt Amount owed is known as uncollectible debt, or bad debt Medicare and Medicaid forbid the write-off of certain debts, unless a set of rigid steps has been followed McGraw-Hill Career Education

Laws Regulating Insurance Claims Most states have prompt payment laws Mandate a time period within which clean claims must be paid or financial penalties may be levied McGraw-Hill Career Education

Collection Activities in a Practice Management Program Aging report provides information on status of patient accounts Current 0-30 31-60 days overdue 61-90 days overdue 91+ days overdue McGraw-Hill Career Education

Collection Activities in a Practice Management Program To create collection letters Patient responsible tickler must be added to Collection List Collection Letter report must be created McGraw-Hill Career Education

Collection Activities in a Practice Management Program Collection List Tracks activities on overdue accounts Ticklers McGraw-Hill Career Education

Collection Activities in a Practice Management Program Tickler Item dialog box Tickler Tab Office Notes Tab McGraw-Hill Career Education

Collection Activities in a Practice Management Program Patient Collection Report Lists status, responsible party, chart number, balance owed, and important dates Option to print collection letters appears after Collection Letter Report is closed McGraw-Hill Career Education

Collection Activities in a Practice Management Program Collection Letters If a collection letter has been sent, an account alert appears in several Medisoft dialog boxes: Transaction Entry Appointment Entry Quick Ledger McGraw-Hill Career Education

Collection Activities in a Practice Management Program Collection Letters Account alerts include: IC – in collections RB – remainder balance DP – delinquent on payment plan McGraw-Hill Career Education

Collection Activities in a Practice Management Program Collection Tracer Report Used to follow-up on collection letters that were sent Lists responsible party, chart number, balance owed, date letter sent, and reason account is in collections McGraw-Hill Career Education