Chapter 36 Accounts Receivable

ACCOUNTS RECEIVABLE Money owed to the practice/doctor/office bookkeeping must be accurate done by: –Receptionist –Bookkeeper / accountant –office manager –Doctor (not very common) must keep $$$$ info confidential/private.

Patient Fees Fee schedule –The doctors list of prices for TX. –Varies from Dr to Dr –not related to Ins. Co. Schedule of Benefits what Ins Co. is willing to pay for TX. If Dr charges more than Ins. Co pays, the Pt. is responsible for the difference. Determined by UCR

UCR = Usual, Customary, Reasonable fee Usual fee: –Fee typically charged for a specific procedure. –Majority of dentists charge this amount. Customary fee: –Average of what Dr’s in your area charge for the same procedure. –Different $$ for different parts of town. –Difficult / complicated Tx

UCR = Usual, Customary, Reasonable fee Reasonable fee –Midrange or average fee. –Not the lowest price –Not the highest price Discounts –Amount subtracted from a fee. Professional courtesy Senior Cash paying customers/patients only taken off TX today, not balance forward.

Management of patient accounts Keeping track of: –TX given. –Cost of the TX –Amount paid by Pt. –Amount paid by Ins. –Any discounts –Status of the account. ( Current or past due.)

Management of patient accounts Can be done: –Manually with a Pegboard system. Pencil and paper. –Computerized more common today. Faster, less errors.

Manual bookkeeping. Pegboard system AKA –write-it-once –NCR = no carbon required

Manual bookkeeping. Consists of: –Day sheets, –Charge slips, –Ledger cards –Receipt forms All forms are aligned on a board with pegs so info is only written once.

Manual bookkeeping. Day sheet –Record of all charges, payments, and adjustments for the day. Charges, payments and adjustments, are all considered ‘financial transactions’ Charge slip –Record of all services provided to a pt. today. Treatment and cost.

Manual bookkeeping. Ledger card –One per family –Lists all costs for all family members who had treatment this month. –Patients are billed from the ledger card. –The total amount due and owing will be the final or last amount in the balance column. Receipt form –Provided to the patient as proof of payment for services

Manual bookkeeping. End-of-the-month balancing –All day sheets for the month are added up. –All patient ledger cards are added up. –Totals should be equal. If not, error needs to be located and corrected.

Computerized bookkeeping Contains all info about patients. –Name –Address –Phone numbers –Insurance info –Responsible party (person responsible for paying the bill.)

Computerized bookkeeping Ledger, keeps track of: –All visits –Procedures –Missed appointments –Discounts for family members –Automatically updated: Posts charges. Calculates patients balance. Calculates accounts receivable balance. –Can be printed or viewed on a monitor.

Monthly billing Patient statements –Mailed 1x per month –Is a request for payment in full. Most send the minimum Can charge a finance charge. Must inform / disclose to the patient Return envelope may be included.

Payment options Financial arrangements –Made before treatment –Must be signed by the patient –Patient gets a copy. Payments may include: –Some $ down, smaller monthly payments –No $ down, larger monthly payments –Payments coincide with tx appointments.

Payment options Credit report –Provided by the credit bureaus Experian Equifax Transunion –Lists Loans Credit cards Repayment history

Payment options Cash –Most pt’s do not pay with cash. –Should be able to make change. Petty cash –May receive a “cash” discount –A receipt must be given.

Payment options Checks –Personal: most common payment method –Certified: bank verifies check is good. Tele-check or Veri-check machine –Cashiers: guaranteed by the bank to be good Must be bought from the bank Cannot bounce. –Travelers: specific denominations (5’s, 10’s) Replaced if lost or stolen. Treated like cash.

Payment options Credit cards –VISA –MasterCard –Discover –Health care card Can only be used for medical and dental purposes. –Credit card transactions are not deposited with cash and checks. Done end of day or week.

Payment options Debit = money subtracted from an account –Example: when you use your debit card or write a check that money is taken from your account. Credit = money added to an account. –Example: you were charged for the same treatment twice. We would add the money back to your account.

Closing Accounts receivable is a very important part of the duties of the front office. If there is no money coming in, you cannot pay accounts payable. (your paycheck) Remember attention to details is very important, accuracy matters. When in doubt ask for help. Any Questions????????