Collections in the Medical Office 10 Collections in the Medical Office Lecture 2

10.4 Working with Collection Agencies 10-11 A collection agency is an outside firm hired to collect on delinquent accounts Practice no longer contacts the patient if the account is turned over to a collection agency Often paid on the basis of the amount of money they collect When payment is received from a collection agency, it must be posted to the patient’s account Information found on the statement provided by the agency Exercise 10-1 Learning Outcome: 10.4 Demonstrate how to post a payment from a collection agency. Pages: 348-350 The agency provides a statement that shows which patient accounts have paid, and the amounts of the payments. Perform Exercise 10-1

10.5 Writing Off Uncollectible Accounts 10-12 When all collection attempts are exhausted, the collection process is ended Amount owed is often called an uncollectible account or a bad debt, and it is written off the practice’s expected accounts receivable A write off is a balance that has been removed from a patient’s account Exercise 10-2 Learning Outcome: 10.5 Discuss the process of writing off uncollectible accounts. Pages: 350-352 Perform Exercise 10-2

10.6 Using a Patient Aging Report for Collections 10-13 An aging report shows the patient’s chart number and name, and the amount of unpaid charges in each of these categories: Current: Up to 30 days Past: 31 to 60 days Past: 61 to 90 days Past: 91 to 120 days Past: More than 120 days Exercise 10-3 Learning Outcome: 10.6 Explain how to use a patient aging report to identify past due accounts. Pages: 352-353 Used monitor collection activities for patients and insurance. The collection process begins with an analysis of the aging report, which shows the status of each account over time. Perform Exercise 10-3

10.7 Adding an Account to the Collection List 10-14 Overdue accounts are added to a collection list The collection list is designed to track activities that need to be completed as part of the collection process Ticklers or collection reminders are displayed as collection list items A tickler is a reminder to follow-up on an account that is entered on the collection list Learning Outcome: 10.7 Demonstrate how to add an account to the collection list. Pages: 353-361 Collection List located on Activities menu.

10.7 Adding an Account to the Collection List (Continued) 10-15 The Collection List dialog box displays ticklers that have been entered into the database Learning Outcome: 10.7 Demonstrate how to add an account to the collection list. Pages: 353-361

10.7 Adding an Account to the Collection List (Continued) 10-16 Tickler Item dialog box Exercise 10-4 Tickler tab Office Notes tab Learning Outcome: 10.7 Demonstrate how to add an account to the collection list. Pages: 353-361 A new tickler item is created by pressing the New button in the Collection List dialog box. Once a new tickler has been saved, the program automatically assigns a unique identifier code to the item. For patient-responsible ticklers, the balance is the balance shown in Transaction Entry. Perform Exercise 10-4

10.8 Creating Collection Letters 10-17 Before collection letters can be sent in Medisoft: Patient-responsible tickler item must be entered in the collection list Collection Letter report must be created Report is generated when the Patient Collection Letters option is selected on the Reports menu Learning Outcome: 10.8 Demonstrate how to create a collection letter. Pages: 361-366

10.8 Creating Collection Letters (Continued) 10-18 The Patient Collection Report lists patients with overdue accounts to whom statements have been mailed Learning Outcome: 10.8 Demonstrate how to create a collection letter. Pages: 361-366

10.8 Creating Collection Letters (Continued) 10-19 After printing collection letters, an account alert appears in the Transaction Entry, Quick Ledger, and Appointment Entry windows There are three account alert abbreviations: RB – remainder balance DP – delinquent on payment plan IC – in collections Exercise 10-5 Learning Outcome: 10.8 Demonstrate how to create a collection letter. Pages: 361-366 Perform Exercise 10-5

10.9 Creating a Collection Tracer Report 10-20 A collection tracer report is used to keep track of collection letters that were sent The report lists: Tickler item number Responsible party Chart number Account balance Date collection letter was sent Reasons the account is in collections Created via the Collection Tracer Report feature on the Reports menu Exercise 10-6 Learning Outcome: 10.9 Demonstrate how to create a collection tracer report. Pages: 366-368 Perform Exercise 10-6