1. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 19 Daily Financial Practices

2. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Patient Fees Informing patients about charges Collecting payments Making credit arrangements Making sure patients and their providers receive full benefit of medical insurance Attitude that patients pay their medical bills in timely and responsible manner helpful

3. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Patient Fees Helping patients who cannot pay –MA might make financial arrangements with patients allowing full payment for services provided –Patients less likely to withdraw from medical treatment when their finances are low

4. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Patient Fees Determining patient fees –Managed care contracts pay predetermined fees –Concierge-type medical groups collect additional fee –Provider fees for procedures billed and reimbursed according to standard insurance guidelines

5. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Patient Fees Discussion of fees –Varies depending on type of medical facility, needs of practice, professional services rendered –Inform patients of charges and exactly what portion of bill they are expected to pay

6. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Patient Fees Adjustment of fees –Medicare and Medicaid mandated to charge every patient same amount for similar services rendered –Adjustments for patients with limited income –Medicare, Medicaid, Blue Cross Blue Shield, private health insurance adjustments –Refunds

7. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Credit Arrangements Payment planning Acceptance of credit/debit cards

8. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Bookkeeping Function Managing patient accounts –For tax and legal purposes –Maintain account records for each patient –Accounts receivable records –Computerized accounting systems –Pegboard system –MA should understand both systems

9. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Bookkeeping Function Importance of good work habits in financial transactions –Always work with care and accuracy –Work must be kept current –Double-check entries for accuracy –Rules and guidelines for manual bookkeeping system

10. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Bookkeeping Function Pegboard system –Write-it-once system –Day sheets, ledger cards, encounter forms or charge slips, receipt forms –Advantages Provides up-to-date accounts receivable status Relatively inexpensive

11. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Bookkeeping Function Computerized financial systems –Used by majority of medical facilities –Be sure system meets current needs and will grow with practice –Consider adopting system that allows practice to start with one component and to add another component

12. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Bookkeeping Function

13. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Recording Patient Transactions Bookkeeping activities must be exact All entries must be correct

14. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Recording Patient Transactions Encounter form –Charge slip, superbill, multipurpose billing form –Used in manual and computerized bookkeeping systems –Designed to fit practice, computer system, pegboard –Patient information, insurance data, previous balance, current services and charges –Procedure and diagnosis codes; provider’s NPI

15. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Recording Patient Transactions Patient account or ledger –Patient’s financial history recorded in accounts receivable ledger –Each adult in a family has her/his own ledger –Parent with physical custody considered “guarantor” and responsible for payment if child not insured

16. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Recording Patient Transactions Patient account or ledger –Minimum of three columns: debit, credit, balance –Adjustment column is credit column –Ledger placed under charge slip or encounter form in pegboard system –In computerized system, account or ledger can be printed with same information

17. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Recording Patient Transactions Day sheet –Posting of all financial transactions for professional services –Balanced at end of day; gives complete picture of day’s activities –Number of different styles; some provide deposit portion and section used for business analysis

18. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Recording Patient Transactions Day sheet –In pegboard system Ledger card and encounter form placed on top of day sheet Bottom of day sheet, transactions totaled and balanced –In computer system Requires same data Matches correct charge and posts it to patient account and accounts receivable ledger

19. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Recording Patient Transactions Receipts –Used only when someone makes payment on account on day when no services rendered –Can be created in pegboard and computerized systems

20. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Recording Patient Transactions Month-end activities –Verify month-end figures on day sheet agree with patient accounts –Time-consuming in manual system –Find mistakes before they grow into major accounting or collection problems –Provide “checks and balances”

21. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Recording Patient Transactions Computerized patient accounts –Automatically create encounter form –Calculate charges for monthly billing –Transfer data to produce insurance forms, statements, list of checks received each day, deposit slips –Automatically age all accounts

22. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Banking Procedures Online banking –Check account balances, transfer funds between accounts, pay bills electronically, check credit card balances, view images of checks and deposits, download account information 24/7

23. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Banking Procedures Types of accounts –Checking accounts Primary account –Savings accounts Money market accounts

24. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Banking Procedures Types of checks –Cashier’s check –Certified check –Money orders –Voucher check –Traveler’s checks –ATM machines when traveling –Electronic checks

25. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Banking Procedures Depositing checks –Usually made daily –Endorsements –Take precautions

26. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Banking Procedures Cash on hand –For change –Receipts prepared –Cash drawer balanced daily

27. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Banking Procedures Accepting checks –Inspect check for correct information –Do not accept a third-party check unless it is from insurance carrier –“Insufficient funds”

28. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Banking Procedures Lost or stolen checks –Report to bank immediately –Stop payment –Check signatures for possible forgery

29. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Banking Procedures Writing and recording checks –Purposes To pay bills (accounts payable) Refunds of overpayment Replenish petty cash –Sample of properly completed check

30. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Banking Procedures Reconciling a bank statement –Performed monthly –Online banking, bank statement can be accessed electronically at any time –Ensures accounts receivable accurate for previous month

31. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Purchasing Supplies and Equipment Ensure proper control over purchasing Preparing a purchase order Verifying goods received –Verify correct items and quantities shipped by vendor

32. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Petty Cash Minor, routine, unexpected expenses Totally separate from cash drawer Establishing petty cash fund Tracking, balancing, replenishing petty cash –Track with petty cash vouchers –Balance and replenish when fund gets low