10 Collections in the Medical Office

Learning Outcomes When you finish this chapter, you will be able to: 10.1 Explain the importance of prompt payment laws Summarize the importance of a financial policy in a medical office Identify the laws that regulate collections from patients Demonstrate how to post a payment from a collection agency Discuss the process of writing off uncollectible accounts Explain how to use a patient aging report to identify past due accounts. 10-2

Learning Outcomes (Continued) When you finish this chapter, you will be able to: 10.7 Demonstrate how to add an account to the collection list Demonstrate how to create a collection letter Demonstrate how to create a collection tracer report. 10-3

Key Terms collection agency collection list collection tracer report payment plan prompt payment laws tickler uncollectible accounts write off 10-4

10.1 Laws Governing Timely Payment of Insurance Claims 10-5 Receiving prompt payment for services is a critical factor in determining the financial success of a medical practice Prompt payment laws are state laws that mandate a time period within which clean claims must be paid and that call for financial penalties to be levied against late payers

10.2 The Importance of a Financial Policy 10-6 Collection process begins with a clear financial policy and effective communications with patients about their financial responsibilities Important to have a written financial policy that spells out patients' responsibilities

10.2 The Importance of a Financial Policy (Continued) 10-7 Financial policies should tell patients how the practice handles: – Collecting copayments and past-due balances – Setting up financial arrangements for unpaid balances – Providing care for patients with low incomes – Payments for services not covered by insurance – Collecting prepayments – Accepted methods of payment

10.3 Laws Governing Patient Collections 10-8 Patient collections are consumer collections and are regulated by federal and state laws Collections from insurance carriers are considered business collections

10.3 Laws Governing Patient Collections (Continued) 10-9 Fair Debt Collection Practices Act of 1977 Telephone Consumer Protection Act of 1991 General guidelines: – No calls before 8 am or after 9 am – No threats or profane language – Respect patient privacy – No deception or violence

10.3 Laws Governing Patient Collections (Continued) A payment plan is an agreement between a patient and a practice in which the patient agrees to make regular monthly payments over a specified period of time – Truth in Lending Act applies if practice adds finance charges and payments are made in more than four installments