Unit 41 Maintaining Accounts

Basic Principles of Maintaining Accounts Maintaining accounts accurately is an essential part of any health care field. An account can be defined as a financial record of charges, payments made, and amounts due. A charge is a fee charged for a service.

Basic Principles of Maintaining Accounts A payment is an amount of money paid by a patient or client. A current balance is the amount still owed by the patient or client and is often classified as accounts receivable.

Basic Principles of Maintaining Accounts Most computerized billing systems are easy to use. Password protection is used so only authorized individuals may access the information. Daily tape, disk, or CD-ROM backups must be made and stored in a safe area in case of computer failure.

Basic Principles of Maintaining Accounts If a current balance exists, this becomes a previous balance when a new charge is noted. The following formula is used to calculate current balance: Previous balance + charge – payment = current balance

Maintaining Accounts Example: The previous balance on an account is $7.50. If there is a new charge of $97.25 and a payment of $70.00, what is the current balance? Set up the formula: Previous balance + charge – payment = current balance $7.50 + $97.25 - $70.00 = current balance $104.75 - $70.00 = $34.75 The current balance due is $34.75.

Practical Problem A patient with a current balance of $135.96 visits the office. She is treated for bronchitis with a charge of $97.50. She pays $42.00. What is her new current balance?

Practical Problem Follow the formula, adding the balance and the new charge, then subtract the payment: The new current balance is $191.46