Chapter 14 SB

Who should come in periodically to audit the medical practice's finances and bookkeeping practices? Multiple choice question. An outside accountant CMS A peer review group A clearinghouse representative

An outside accountant

Which of the following searches can be performed on databases for skip tracing? (Select all that apply.) - Job search - Credit search - Name search - Health history search - Neighbor search - Relatives search

- Name search - Neighbor search - Relatives search

What is the meaning of the abbreviation HU? Multiple choice question. Hung up Hold underpayment High utilization Hurry up

Hung up

The most common reason an account becomes uncollectible is that a patient _____. Multiple choice question. is unsatisfied with service cannot pay the bill changes physicians moves

cannot pay the bill

Practices sometimes _____ on payment plans. Multiple choice question. charge additional services involve lawyers issue credits charge interest

charge interest

When a practice's attempts to collect money owed by a debtor have failed, it often hires a _____. Multiple choice question. collection agency billing manager billing specialist lawyer

collection agency

Credit reporting allows potential creditors to view unpaid medical bills on a person's record obtained through _____. Multiple choice question. credit bureaus credit agencies physicians medical practices

credit bureaus

Patients must sign off on the terms of a _____ form that the collections specialist negotiates. Multiple choice question. negotiated credit truth-in-lending collections consumer credit

truth-in-lending

Which of the following apply when a patient's medical and financial records are retained? (Select all that apply.) - State regulations apply. - No federal or state laws or regulations apply. - HIPAA and FACTA regulations apply. - The practice manager or providers set the retention policy.

- State regulations apply. - HIPAA and FACTA regulations apply. - The practice manager or providers set the retention policy.

Which position makes sure all the funds coming into and owed to the practice are accurately recorded? Multiple choice question. Nurse Bookkeeper Physician Coder

Bookkeeper

What is the purpose of the day sheet? It lists how many patients appointments were scheduled each day. It summarizes the financial transactions that occur each day. It determines the UCR rates for services provided each day. It calculates how much will be reimbursed by the insurance carriers.

It summarizes the financial transactions that occur each day.

When patients are scheduled to have major, expensive procedures, the practice policy may be to set up a _____ plan. Multiple choice question. prepayment credit counseling contracted postpayment

prepayment

A list of the items from a record that are retained and for how long is summarized in a _____ schedule. Multiple choice question. retention FACTA record HIPAA

retention

When the standard attempts to contact a patient are unsuccessful, it may become necessary to ______ the debtor. Multiple choice question. lien release mandate skip trace

skip trace

Which of the following are examples of a schedule for a payment plan? (Select all that apply.) - Patient defers payment until following year. - $501-$1,000 balance due: $100 minimum monthly payment - $50 balance or less: Entire balance due the first month - $51-$500 balance due: $50 minimum monthly payment

- $501-$1,000 balance due: $100 minimum monthly payment - $50 balance or less: Entire balance due the first month - $51-$500 balance due: $50 minimum monthly payment

Which of the following apply to dismissing patients who do not pay? (Select all that apply.) - If the patient is dismissed, the action should be documented in a letter to the patient. - A physician cannot by state law dismiss a patient who has not paid medical bills. - A physician has the right to terminate the physician-patient relationship for any reason under the regulations of each state. - The physician may decide to dismiss a patient who does not pay medical bills.

- A physician has the right to terminate the physician-patient relationship for any reason under the regulations of each state. - The physician may decide to dismiss a patient who does not pay medical bills. - If the patient is dismissed, the action should be documented in a letter to the patient.

Which of the following apply to the patient aging report? (Select all that apply.) - The patient aging report includes the patient's name, the most recent payment, and the remaining balance. - Aging begins on the date of the bill. - The report is for internal use only. - The patient aging report includes the diagnosis.

- Aging begins on the date of the bill. - The patient aging report includes the patient's name, the most recent payment, and the remaining balance.

Practices have guidelines on payment plans for which of the following? (Select all that apply.) - Credit worthiness - Health history - Appropriate time frames - Age determination - Minimum payment amounts

- Appropriate time frames - Minimum payment amounts

Which of the following tasks are handled by physicians, practice administrators, office managers, or collections managers? (Select all that apply.) - Pull credit reports to determine if patients have the ability to pay - Assist collection specialists with difficult phone calls - Supervise the efforts of the collection specialist - Monitor results of collection activities

- Assist collection specialists with difficult phone calls - Supervise the efforts of the collection specialist - Monitor results of collection activities

Consumer credit counseling services and debt management programs are nonprofit organizations that do which of the following? (Select all that apply.) - Assist patients who are slightly behind on a payment - Wipe debt away for patients - Assist patients who are struggling to pay their bills - Assist patients who have a great number of different bills

- Assist patients who are struggling to pay their bills - Assist patients who have a great number of different bills

Large practices may have separate collections departments with which of the following job functions? (Select all that apply) - Patient account representative (bookkeeper) - Collections specialist - Billing/collections manager - X-ray technician representative

- Billing/collections manager - Patient account representative (bookkeeper) - Collections specialist

Effective patient billing begins with which of the following? (Select all that apply.) - Physician treatment plans - Clear explanations of patients' payment responsibilities - Developing a good rapport with pharmacy staff - Sound financial policies

- Clear explanations of patients' payment responsibilities - Sound financial policies

Which of the following apply to collections call strategies? (Select all that apply.) - Collections specialists follow a strict set formula when placing calls. - Collections specialists must react to situations and use effective methods to pursue payment arrangements. - Collections specialists cannot follow a set formula when placing phone calls. - Collections specialists must not let patient situations alter their method to pursue payment arrangements.

- Collections specialists must react to situations and use effective methods to pursue payment arrangements. - Collections specialists cannot follow a set formula when placing phone calls.

Which of the following are methods used in skip tracing? (Select all that apply.) - Contacting the post office to find a new address - Searching telephone directories for relatives with the same last name - Running a search on the Internet through one of the free person-finding services - Calling the practice to check their records

- Contacting the post office to find a new address - Searching telephone directories for relatives with the same last name - Running a search on the Internet through one of the free person-finding services

Which of the following tasks are handled by physicians, practice administrators, office managers, or collections managers? (Select all that apply.) - Organize the accounts and develop strategies for collections - Send payment checks for services performed - Train the collection specialists - Create and implement practice's collections policies

- Create and implement practice's collections policies - Organize the accounts and develop strategies for collections - Train the collection specialists

Most practices have at least two or more people involved in which of the following areas of collections? (Select all that apply.) - Calling patients for collections - Meeting with patients for collections - Closing out the day's financial records - Opening mail and posting payments

- Opening mail and posting payments - Closing out the day's financial records

Under a national 2015 agreement by the major credit reporting agencies, which of the following statements are correct? (Select all that apply.) - Credit agencies will remove medical debts from an individual's report after the debt is paid. - The 2015 agreement was designed to protect primarily the creditors. - The 2015 agreement as designed to provide an increase in protection for consumers. - There is a six-month waiting period before medical debts will be reported on consumers' credit reports.

- Credit agencies will remove medical debts from an individual's report after the debt is paid. - The 2015 agreement as designed to provide an increase in protection for consumers. - There is a six-month waiting period before medical debts will be reported on consumers' credit reports.

Which of the following guidelines apply to collections under the Fair Debt Collection Practices Act of 1977? - If the patient requests calls be sent to an attorney, the collections can call both the patient and the attorney. - Voicemails can be left daily if the patient does not answer. - Do not threaten the patient or use profane language. - Contact patients once daily only. - Do not call a patient before 8am or after 9pm.

- Do not threaten the patient or use profane language. - Contact patients once daily only. - Do not call a patient before 8am or after 9pm.

Which of the following apply to the posting and processing of payments? (Select all that apply.) - Each patient account is located, and the payment is posted to the correct charge. - The PMP subtracts the amount due from the account. - A practice never accepts a payment less than what is due. - Often a practice accepts an amount less than what is due as payment in full and writes off the uncollected difference.

- Each patient account is located, and the payment is posted to the correct charge. - The PMP subtracts the amount due from the account. - Often a practice accepts an amount less than what is due as payment in full and writes off the uncollected difference.

Collections from patients are classified as consumer collections and are regulated by which of the following? - Consumer groups - Federal laws - State laws - Local regulations

- Federal laws - State laws

Financial policies address which of the following scenarios? (Select all that apply.) - Treatment plans - Financial arrangements -Payments not covered by insurance - Patient's medical conditions - Payment plans

- Financial arrangements -Payments not covered by insurance - Payment plans

Which of the following are payment procedures completed by patients? (Select all that apply.) - Forms to arrange payments for professional services rendered - Preauthorized credit card forms - Patient's personal budget spreadsheet - Medical history forms

- Forms to arrange payments for professional services rendered - Preauthorized credit card forms

Which of the following apply to collections letters? (Select all that apply.) - Generally professional, courteous, brief, and to the point - Remind the patient of the practice's payment options and the patient's responsibilities - Aggressive letters are never sent to a patient. - Accounts that are further past due will receive more aggressive letters.

- Generally professional, courteous, brief, and to the point - Remind the patient of the practice's payment options and the patient's responsibilities - Accounts that are further past due will receive more aggressive letters.

Collection activities should achieve a balance between which of the following goals? (Select all that apply.) - Reducing cash flow - Getting more business - Generating cash flow - Maintaining patient satisfaction

- Generating cash flow - Maintaining patient satisfaction

Which of the following would a practice review or consider when deciding on a collection agency? (Select all that apply.) - Good collection agencies can clearly explain their procedures. - Practices are required to use only a handful of collection agencies. - The practice can see if the agency actively pursues payment. - Some agencies only use letters and do not pursue further follow-up.

- Good collection agencies can clearly explain their procedures. - The practice can see if the agency actively pursues payment. - Some agencies only use letters and do not pursue further follow-up.

The Truth in Lending Act governs which of the following? (Select all that apply.) - If payments are scheduled for more than four installments - When a practice applies finance charges or late fees -When a collections call is made - When any amount is billed to the patient

- If payments are scheduled for more than four installments - When a practice applies finance charges or late fees

The ECOA mandates that a patient be notified as to which of the following factors if they are denied credit? (Select all that apply.) - Marital history - Income - Expenses - Debts - Credit history - Health history

- Income - Expenses - Debts - Credit history

Which of the following are categories for the patient aging report? (Select all that apply.) - Past due: More than ninety days - Past due: Sixty-one to ninety days - Past due: Up to thirty days - Past due: Thirty-one to sixty days - Current or up-to-date: Thirty days

- Past due: More than ninety days - Past due: Sixty-one to ninety days - Past due: Thirty-one to sixty days - Current or up-to-date: Thirty days

Which of the following reasons could force the practice to send a patient's bill to a collection agency early? (Select all that apply.) - Patient declares they will not pay. - The practice does not like the patient based on previous visits. - Contact information for patient is outdated, and attempts to locate patient have failed. - The patient is complying with a payment plan. - Patient's check is returned for lack of funds with no attempt to resolve.

- Patient declares they will not pay. - Contact information for patient is outdated, and attempts to locate patient have failed. - Patient's check is returned for lack of funds with no attempt to resolve.

Which of the following apply to credit counseling? (Select all that apply.) - Credit counseling is a free service. - Patients make one monthly payment to the service. - Contact creditors to work out payment plans at reduced costs - Collect information on income and unpaid bills

- Patients make one monthly payment to the service. - Contact creditors to work out payment plans at reduced costs - Collect information on income and unpaid bills

Financial policies address which of the following scenarios? (Select all that apply.) - Payment plans - Patient's medical conditions - Payments not covered by insurance - Treatment plans - Financial arrangements

- Payment plans - Payments not covered by insurance - Financial arrangements

Identify all of the correct statements related to uncollectible accounts. - Practices do not expect to be able to collect. - Accounts that are not worth the time and cost to pursue - Accounts with unpaid balances - Accounts over a year old have a better chance of collection.

- Practices do not expect to be able to collect. - Accounts that are not worth the time and cost to pursue - Accounts with unpaid balances

Which of the following apply to the importance of an effective financial policy? (Select all that apply.) - Practices must clearly explain their financial policies so that patients understand their obligations. - A good financial policy is one that both staff members and patients can follow. - A financial policy should not be disclosed to staff members or patients. - Practices must clearly explain their financial policies so that administrative staff members know what is expected of the patients.

- Practices must clearly explain their financial policies so that patients understand their obligations. - A good financial policy is one that both staff members and patients can follow. - Practices must clearly explain their financial policies so that administrative staff members know what is expected of the patients.

Which of the following apply to the importance of an effective financial policy? (Select all that apply.) - Practices must clearly explain their financial policies so that patients understand their obligations. - A good financial policy is one that both staff members and patients can follow. - Practices must clearly explain their financial policies so that administrative staff members know what is expected of the patients. - A financial policy should not be disclosed to staff members or patients.

- Practices must clearly explain their financial policies so that patients understand their obligations. - A good financial policy is one that both staff members and patients can follow. - Practices must clearly explain their financial policies so that administrative staff members know what is expected of the patients.

Which collection agencies usually have a better understanding of a patient's surroundings and economic status? - National agencies - Regional agencies - Local agencies - International agencies

- Regional agencies - Local agencies

Which collection agencies usually have a better understanding of a patient's surroundings and economic status? - Regional agencies - International agencies - Local agencies - National agencies

- Regional agencies - Local agencies

Which of the following practices apply to a letter dismissing a patient who did not pay? - Return receipt is requested. -The letter should be signed by the physician. - The letter should be sent certified mail. - A copy of the letter is sent to the IRS.

- Return receipt is requested. -The letter should be signed by the physician. - The letter should be sent certified mail.

Sound financial policies and procedures that clearly explain the patient's responsibilities for payment set the stage for which of the following? (Select all that apply.) - Sending patient statements - Denial of claims - WIthholding patient statements - Following up on patient payments - Poor relationships with the physicians

- Sending patient statements - Following up on patient payments

Which of the following may be true in regard to staff assignments and collections in a medical office? (Select all that apply.). - Small offices may assign collection duties to coders or billers. - Collection duties are never assigned to coders or billers. - Staff assignments rarely vary between practices. - Staff assignments vary between practices.

- Small offices may assign collection duties to coders or billers. - Staff assignments vary between practices.

Which of the following may be true in regard to staff assignments and collections in a medical office? (Select all that apply.) - Staff assignments vary between practices. - Collection duties are never assigned to coders or billers. - Staff assignments rarely vary between practices. - Small offices may assign collection duties to coders or billers.

- Staff assignments vary between practices. - Small offices may assign collection duties to coders or billers.

Identify all the strategies that collections specialists use when talking to patients on the phone for collection calls. - Stay in control and do not let patient get too far off topic. - Threaten the patient to get them to pay. - Be straightforward and honest. - Maintain a professional attitude. - Mislead a patient in order to get them to make a payment.

- Stay in control and do not let patient get too far off topic. - Be straightforward and honest. - Maintain a professional attitude.

Which of the following apply to collection payments posting? (Select all that apply.) - The agency includes a statement showing which patient accounts have been paid. - The agency sends a lump sum amount for the practice to apply as it decides. - Money is collected according to the terms of the business associate (BA) contract. -The payments collected by the collection agency are made up of amounts collected from various patients with various account ages.

- The agency includes a statement showing which patient accounts have been paid. - Money is collected according to the terms of the business associate (BA) contract. -The payments collected by the collection agency are made up of amounts collected from various patients with various account ages.

Which of the following apply to the process of collection calls? (Select all that apply.) - The first call is used to verify that the patient has received a bill. - A collections specialist usually resolves problems with the first call when verifying that the patient received the bill. - Some patients are unwilling or unable to pay, and the collection specialist treats each carefully. - A collections specialist begins the process of collections aggressively.

- The first call is used to verify that the patient has received a bill. - A collections specialist usually resolves problems with the first call when verifying that the patient received the bill. - Some patients are unwilling or unable to pay, and the collection specialist treats each carefully.

When making a phone call based on results from skip tracing, which of the following apply? (Select all that apply.) - Giving a neighbor patient information is acceptable. - The information found may not always be correct. - Deception and lies are inappropriate. - Do not reveal patient information.

- The information found may not always be correct. - Deception and lies are inappropriate. - Do not reveal patient information.

Which of the following are steps in setting up a prepayment plan? (Select all that apply.) - The patient makes a down payment. - The patient makes arrangements for possible postprocedure monthly payments. - The patient pays the entire cost of the procedure after the procedure is done. - The insurance carrier is contacted for an estimate of the patient's financial responsibility.

- The patient makes a down payment. - The patient makes arrangements for possible postprocedure monthly payments. - The insurance carrier is contacted for an estimate of the patient's financial responsibility.

Which of the following are steps after receiving the remittance advice? - The payer's payment for each reported procedure is entered. - The amount the patient owes for each reported procedure is calculated. - A charge that has been written off is not entered on the patient's ledger. - If any part of a charge must be written off, that amount is entered.

- The payer's payment for each reported procedure is entered. - The amount the patient owes for each reported procedure is calculated. - If any part of a charge must be written off, that amount is entered.

Which of the following are reasons that medical practices would use skip tracing? (Select all that apply.) - They received mail marked "Return to Sender." - The patient is late on payments. - The patient appears to have moved. - The patient cannot be reached by phone.

- They received mail marked "Return to Sender." - The patient appears to have moved. - The patient cannot be reached by phone.

The price of online searches includes access to _____. (Select all that apply.) - information about the debtor's family members - information about the debtor's neighbors - the credit history of the debtor's parents - the debtor's personal information - the debtor's health history

- information about the debtor's family members - information about the debtor's neighbors - the debtor's personal information

The need to skip trace can be reduced by which of the following? Multiple choice question. Accurately gathering billing information Having a good coding specialist Having a good bookkeeper Having a collection manager

Accurately gathering billing information

What are typically the first notices to patients that their bills are past due? Multiple choice question. Accounts being sent to collection agencies Repossessions of property Income withholdings Collection letters

Collection letters

Which type of billing divides patients with current balances into groups to equalize monthly statement printing and mailing? Multiple choice question. Guarantor billing AR billing Cycle billing Cashflow billing

Cycle billing

Which act prohibits discrimination on the basis of race, color, religion, national origin, sex, marital status, age, or because a person receives public assistance? Equal Credit Opportunity Act (ECOA) Equal Opportunity Act Equal Employment Opportunity Act Fair Credit and Lending Act

Equal Credit Opportunity Act (ECOA)

Which guidelines must a collection agency follow? Multiple choice question. PSDA FCA FOIA FDCPA

FDCPA

Which guidelines regulate all collections calls? Multiple choice question. FDCPA EPA NPA FDA

FDCPA

Why would patients complete preauthorized credit card forms? Multiple choice question. For collection of medical information For payment purposes To authorize disclosure of information To have funds debited from a savings account

For payment purposes

Collections agencies operate on which of the following scales? (Select all that apply.) National Local Regional International

National Local Regional

Which of the following is an example of a cycle billing? All patient bills are sent out at the beginning of the month. All patient bills are sent out at the end of the month. All patient bills are sent out mid-month. Patient bills are divided into four groups so that 25 percent of the bills go out each week.

Patient bills are divided into four groups so that 25 percent of the bills go out each week

What is the process of locating a patient who has an outstanding balance? Multiple choice question. Outsourcing Credit reporting De-identify Skip tracing

Skip tracing

If a practice is still treating a patient, an overpayment may be _____. Multiple choice question. applied as a credit offered for future service overlooked converted to free services

applied as a credit

The term _____ refers to all the activities that are related to patient accounts and follow-up. Multiple choice question. generations cycle billing collections statements monitoring

collections

When internal office collection are not always successful, the practice may use a _____________. Multiple choice question. collections agency. accounting service. billing service. audit agency.

collections agency.

The report summarizing the business day's charges and payments is called ________. Multiple choice question. accounts receivable. day sheet. encounter form. daily calculations.

day sheet.

A common organizing principle when finances are involved is to divide the tasks among several people with different responsibilities to reduce the chances of _____. Multiple choice question. losing employees embezzlement boredom overworking employees

embezzlement

When reviewing documentation done by a collections specialist the abbreviation LM means ________. Multiple choice question. left message. lowest method. listed modifications. lost money.

left message.

The use of _____ helps a practice decide whether patients are indigent. Multiple choice question. questionnaires means tests interviews background searches

means tests

Practices generally prefer to use collection agencies that specialize in handling _____. Multiple choice question. medical office accounts government accounts large client volumes small client volumes

medical office accounts

When billing is done manually rather than by computer, the patient statement form is called the ___________. Multiple choice question. patient ledger. superbill. day sheet. patient receipt.

patient ledger.

When a practice has overcharged a patient for service, it needs to issue _____. Multiple choice question. future service a coupon for the next visit patient refunds free services

patient refunds

A document that shows services provided to a patient, total payments made, total charges, adjustments and balance due is the __________. Multiple choice question. patient statement. day sheet. explanation of benefits. patient form.

patient statement.

After an encounter, the transactions for the visit (charges and payments) are entered in the _____. patient's ledger master planner insurance carrier's website patient's chart

patient's ledger

A plan that lets patients pay bills over time rather than in a single payment is called a(n) _____ plan. Multiple choice question. payment interest extension credit

payment

Once the patient's account is past due, collections specialists begin calling to set up _____. Multiple choice question. payment arrangements meetings about the account appointments with the physician communication

payment arrangements

An account for which the practice has exhausted all of its collection efforts and the patient's balance is still unpaid is labeled a(n) _____ account. Multiple choice question. unpaid delinquent uncollectible bad

uncollectible