Transcript CHAPTER Collections in the Medical Office © 2011 The McGraw-Hill Companies, Inc. All rights reserved.

CHAPTER
10
Collections in the
Medical Office
© 2011 The McGraw-Hill Companies, Inc. All rights reserved.
10-2
Learning Outcomes
When you finish this chapter, you will be able to:
10.1
10.2
10.3
10.4
10.5
10.6
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.
© 2011 The McGraw-Hill Companies, Inc. All rights reserved.
10-3
Learning Outcomes (Continued)
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.
© 2011 The McGraw-Hill Companies, Inc. All rights reserved.
Key Terms
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10-4
collection agency
collection list
collection tracer report
payment plan
prompt payment laws
tickler
uncollectible accounts
write off
© 2011 The McGraw-Hill Companies, Inc. All rights reserved.
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
© 2011 The McGraw-Hill Companies, Inc. All rights reserved.
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
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10.2 The Importance of a Financial
Policy (Continued)
10-7
• Financial policies should tell patients how the
practice handles:
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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
© 2011 The McGraw-Hill Companies, Inc. All rights reserved.
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
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10.3 Laws Governing Patient Collections
(Continued)
10-9
• Fair Debt Collection Practices Act of 1977
• Telephone Consumer Protection Act of 1991
• General guidelines:
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No calls before 8 am or after 9 am
No threats or profane language
Respect patient privacy
No deception or violence
© 2011 The McGraw-Hill Companies, Inc. All rights reserved.
10.3 Laws Governing Patient Collections
(Continued)
10-10
• 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
© 2011 The McGraw-Hill Companies, Inc. All rights reserved.
10.4 Working with Collection Agencies
10-11
• A collection agency is an outside firm hired to
collect on delinquent accounts
– Practice no longer contacts the patient if the account
is turned over to a collection agency
– Often paid on the basis of the amount of money they
collect
• When payment is received from a collection
agency, it must be posted to the patient’s
account
– Information found on the statement provided by the
agency
© 2011 The McGraw-Hill Companies, Inc. All rights reserved.
10.5 Writing Off Uncollectible Accounts
10-12
• When all collection attempts are exhausted, the
collection process is ended
• Amount owed is often called an uncollectible
account or a bad debt, and it is written off the
practice’s expected accounts receivable
• A write off is a balance that has been removed
from a patient’s account
© 2011 The McGraw-Hill Companies, Inc. All rights reserved.
10.6 Using a Patient Aging Report for
Collections
10-13
• An aging report shows the patient’s chart
number and name, and the amount of unpaid
charges in each of these categories:
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Current: Up to 30 days
Past: 31 to 60 days
Past: 61 to 90 days
Past: 91 to 120 days
Past: More than 120 days
© 2011 The McGraw-Hill Companies, Inc. All rights reserved.
10.7 Adding an Account to the
Collection List
10-14
• Overdue accounts are added to a collection list
• The collection list is designed to track activities
that need to be completed as part of the
collection process
– Ticklers or collection reminders are displayed as
collection list items
• A tickler is a reminder to follow-up on an
account that is entered on the collection list
© 2011 The McGraw-Hill Companies, Inc. All rights reserved.
10.7 Adding an Account to the
Collection List (Continued)
10-15
• The Collection List dialog box displays ticklers
that have been entered into the database
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10.7 Adding an Account to the
Collection List (Continued)
10-16
• Tickler Item dialog box
Tickler tab
Office Notes tab
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10.8 Creating Collection Letters
10-17
• Before collection letters can be sent in Medisoft:
– Patient-responsible tickler item must be entered in the
collection list
– Collection Letter report must be created
• Report is generated when the Patient Collection
Letters option is selected on the Reports menu
© 2011 The McGraw-Hill Companies, Inc. All rights reserved.
10.8 Creating Collection Letters
(Continued)
10-18
• The Patient Collection Report lists patients with
overdue accounts to whom statements have
been mailed
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10.8 Creating Collection Letters
(Continued)
10-19
• After printing collection letters, an account alert
appears in the Transaction Entry, Quick Ledger,
and Appointment Entry windows
• There are three account alert abbreviations:
– RB – remainder balance
– DP – delinquent on payment plan
– IC – in collections
© 2011 The McGraw-Hill Companies, Inc. All rights reserved.
10.9 Creating a Collection Tracer Report
10-20
• A collection tracer report is used to keep track
of collection letters that were sent
• The report lists:
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Tickler item number
Responsible party
Chart number
Account balance
Date collection letter was sent
Reasons the account is in collections
• Created via the Collection Tracer Report feature
on the Reports menu
© 2011 The McGraw-Hill Companies, Inc. All rights reserved.