1. Computers in the Medical Office
Chapter 10:
Collections in the Medical Office
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2. 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
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3. 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
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4. Laws Governing Collections
Patient collections regulated by federal and state laws
Insurance collections considered business collections
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5. 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
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6. 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
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7. Payment Plans Agreement between a patient and the practice
Patient makes regular payments over a specific period of time
Finance charges may be applied
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8. 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
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9. 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
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10. 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
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11. 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
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12. Collection Activities in a Practice Management Program
Collection List
Tracks activities on overdue accounts
Ticklers
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13. Collection Activities in a Practice Management Program
Tickler Item dialog box
Tickler Tab
Office Notes Tab
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14. 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
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15. 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
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16. Collection Activities in a Practice Management Program
Collection Letters
Account alerts include:
IC – in collections
RB – remainder balance
DP – delinquent on payment plan
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17. 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
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