chapter 13 fees credit and collection
What is open-book accounts?
Records of business transactions on the books that represent unsecured accounts receivable where credit has been extended w/o a formal contract.
what does the common-law principle Quantum Meruit mean?
"As much as he deserves" patient agrees to pay fair amount for services rendered
What are realistic good collection rate for a collection agency?
30-60%
personal contact by telephone is important when an account remains delinquent for for then ________ days?
60
Describe aging analysis:
Analysis of accounts receivable indicating a breakdown of the length of time (30,60,90 and 120 days) the account is overdue.
What should a patient registration form include?
Basic Demographics (personal info) Employment, patients insurance Info
Statement of services provided and fees owed:
Billing statement
What are the names of the document that is a combination form that can be used as a bill and a routing document?
Charge slip, encounter form, routing form ans super bill.
Fees for professional services rendered are also known as:
Charges
in most situations, private insurers and government-funded programs forbid the physician from waiving this, which is due at the time of service:
Copayment
Large companies that keep records on individual borrowers and their payment history are known as:
Credit Bureau
Used to make payments, withdraw cash, or transfer funds from a bank account:
Debit card/ Check card
which legislation states debtors may be contacted only once a day, debtors may not be contacted on Sunday or on their Sabbath and postcards may not be used for collection purposes?
Fair Debt Collection Practices Act (FDCPA)
When did extending credit for medical services and the use of credit cards start?
In the 1930's out of the great depression.
What is statute of limitations?
Individual time limits set for each state to collect
What is a paper record for individual account showing charges, payments, adjustments, and balance owed called?
Ledger card
total amount owes on account by patients for services rendered:
accounts receivable (AR)
If a patient has a balance that the office is unsuccessful is collecting, when should the office turn the account over to a collection agency?
after 5-6 months of delinquency immediately if you can't contact the patient.
What is a wage garnishment?
attaching a debtors property and/or wages for payment of debt by court order so money can be obtained
when tracing a skip, you should do what?
begin search ASAP
Device used to perform mathematic functions:
calculator
What preventative measure may large medical facilities consider to avoid dad checks?
check authorization system.
Legal process of discharging or reorganizing a debt is known as:
claiming bankruptcy
What is a list of services provided and the amounts charged?
fee schedule
Describe the Federal Truth in Lending Act:
governs anyone who charges interest or agrees to more then 4 payments for a given service .
What should the office do if a patient sends an unsigned check for payment?
have the patient come to the office to sigh it.
describe fee-for-service:
ins payment arrangement that involves a set fee schedule
For patients with no private or government insurance, what does charity care typically cover?
outpatient services at hospital
What are characteristics of a "deadbeat" patient?
patient who evades paying bills, blanks on form, questionable employment record, no work or home number, motel address, doctor hopping no referral, no ins.
What is a "dun message"?
phrase used to remind patients of a delinquent account
What is a smart card?
plastic card like a debit card is embedded with a programmable microchip that has access to medical, financial and other records.
what is concierge medicine also known as? What does it mean?
retainer based medicine, patient pays an annual retainer fee to PCP basic services.
What is fee splitting? Is it legal?
when one doctor pays another doctor for referrals of patients. it is unethical and a felony in several states.
define receipt:
written acknowledgment of individual payment
The Fair Debt Collections Practices Act states that telephone calls for collection activities should be placed at what times?
After 8 am, before 9 pm no Saturday/Sunday
Which legislation specifies that if a medical practice agrees to extend credit to one patient, the same financial arrangement must be extended to all who request it?
Equal Credit Opportunity Act
What is cycle billing?
Method in which certain portions of account receivable are billed at specific times during the month.
what does NSF stand for? What does it mean?
Non Sufficient funds. when notice is received from bank indicating a check was not honored
What are the three components of the Medicare Fee Schedule?
Participating Fee, Nonparticipating Fee, Limiting Charge
Why would an office use a billing service?
Patient understanding improves prompt billing is ensured saves medical office money and time.
What is the individual Responsibility Program?
Payment system where doctors accepts all but opt out of insurance programs so patient gets billed directly patient then applies to the carrier or program for reinbursment.
What do we call a debtor who has moved and left no forwarding address?
Skip
Define Credit:
To trust or believe: Extended payment term one loan.