Ch 29 Patient Accounts

Encounter Forms

"Charge slip or super bill" Lists the procedures performed in that medical office, with their respective codes. The charges are entered on the encounter form.

*Effiency

Better use is made of resources and time; cash flow should improve through better debt collection and inventory control

Business Associate Agreement (BAA)

Establishes guidelines regarding what will occur

Automation

Fast and accurate generatio of accounting documents such as invoices, credit notes, statements of accounts, purchase orders, and even payroll documents can all be done automatically.

*Speed

Formatted screens and built-in databases of patient accounts and vendors allow actions to be performed faster.

Debit

A charge added to existing balance

Double-entry bookkeeping system

A more sophisticated method. Each transaction is recorded in two accounts Each account has two columns. In this system two entries are made for each transaction; one entry as a debit in an account and one entry as a credit in another account. For each debits, there is an equal and opposite credit, and the total of all debits mst equal the total of all credits

Credit

A payment subtracted from existing balance

Calculations

Account calculations are performed automatically for greater accuracy

Advantages of Double-entry bookkeeping system

Accurate calculation of profit and loss in complex businesses Inclusion of assets and liabilities in bookkeeping accounts Ability to prepare financial statements directly from the accounts Detection of errors and fraud are more visible

Accountant

Analyzes these transactions and prepared reports that not only tell the present status of accounts receivable and payable but compare current reports with other years of periods of time

Concurrent info

As information is entered in the system, the accounting records are automatically updated; therefore account balances of patient or vendor accounts remain up-to-date

Disadvantages of Single-entry bookkeeping

Asset and liability accounts (inventory, accounts receivable, or accounts payable) are not tracked. These must be tracked separately in another system. There is no direct linkage between income and the balance sheet. Undetected errors can occur and might be discovered only through bank statement reconcilliation

Availability of infor

Information may be accessed almost instantly and made available to different users in different locations at the same time

Accuracy

Less room for errors exists because only one acconting entry is needed for each transation rather than two or three with a manual system

Reduction of frustration

Management and provider scan be on top of their accounts and thereby reducing stress levels associated with the financial unknowns

Management info

Many types of useful reports can be produced, which helps management monitor and control the business by making wise decisions based on financial gains and losses.

Pegboard System

Patient financial account information used to be recorded. Uses an actual board as a base with pegs that attach the day sheet, the ledger and the encounter form

Computer system problems

Power failure, computer viruses, and hackers are possible problems when using computerized systems.

System integration

Programs come with a compueried ledger system, which is fully integrated, so when a busiess transaction is entered, it is recoreded or linked to a numberof accounting records at the same time.

Patient Ledger

Record of all charges or services rendered, any payments made by the patient or the insurance carrier, and any adjustments included with the specific dates of these entries

Legibility

The data input on a screen displays legible printed data and prevents errors that might be caused by poorly written number sand documentation

Cash Control Sheet

The total amount of cash and checks, including credit and debit card payments should be manually recorded. Can be a daily record sheet or a monthly record showing an entire month with a line for each day to show income in cash and checks, any deposits made and any amounts not deposited and therefore carried over to the next day.

Cost savings

These programs reduce staff time in preparing accounts and audit expenses because in records are neat, accurate and up-to-date.

Staff motivation

These systems require staff to be trained to use new skills, which can make them feel more motivated with their new office abilities

Journalizing

When an entry is made on the manual day sheet

Single-entry bookkeeping system

it's the most basic form similar to checkbook register. The journal recorded for each transaction is recorded in one column, or on a single line to account for either a positive or negative amount to demonstrate the receipt or disbursement of cash. only the revenues and expense are totaled not individual values of each one.

Bookkeeper

one who records the financial transactions of a business, keeping a record of accounts receivable (A/R) and accounts payable (A/P)

Practice Management Software Systems

to record financial transactions. This software decreases errors and increases efficiency and speedy posting of procedures to patient accounts. It also enables minute-to-minute and up-to-date financial info related to patient accounts and procedures rendered.