Transcript 10 - Walla Walla Community College

Collections in the Medical Office
10
Learning Outcomes
10-2
When you finish this chapter, you will be able to:
10.1
10.2
Explain the importance of prompt payment laws.
Summarize the importance of a financial policy in a
medical office.
10.3 Identify the laws that regulate collections from
patients.
10.4 Demonstrate how to post a payment from a collection
agency.
10.5 Discuss the process of writing off uncollectible
accounts.
10.6 Explain how to use a patient aging report to identify
past due accounts.
Learning Outcomes (Continued)
10-3
When you finish this chapter, you will be able to:
10.7
10.8
10.9
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.
Key Terms
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collection agency
collection list
collection tracer report
payment plan
prompt payment laws
tickler
uncollectible accounts
write off
10-4
10.1 Laws Governing Timely Payment10-5
of Insurance Claims
• 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
10-6
10.2 The Importance of a Financial Policy
• 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
10-8
10.3 Laws Governing Patient Collections
• 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
10-9
(Continued)
• 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
10-10
(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