Computers in the Medical Office

Computers inthe Medical Office Chapter 10: Collections in the Medical Office

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

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

Laws Governing Collections • Patient collections regulated by federal and state laws • Insurance collections considered business collections

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

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

Payment Plans • Agreement between a patient and the practice • Patient makes regular payments over a specific period of time • Finance charges may be applied

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

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

Collection Activities in aPractice 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

Collection Activities in aPractice Management Program • To create collection letters • Patient responsible tickler must be added to Collection List • Collection Letter report must be created

Collection Activities in aPractice Management Program • Collection List • Tracks activities on overdue accounts • Ticklers

Collection Activities in aPractice Management Program • Tickler Item dialog box Tickler Tab Office Notes Tab

Collection Activities in aPractice 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

Collection Activities in aPractice 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

Collection Activities in aPractice Management Program • Collection Letters • Account alerts include: • IC – in collections • RB – remainder balance • DP – delinquent on payment plan

Collection Activities in aPractice 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

Computers in the Medical Office