Medical Office Procedures - Module 7 - Chapter 20 Patient Collections and Financial Management

Starting with step one at the top, list the steps to process a patient refund.

1. Calculate and determine the amount to be refunded. 2. Record the check number and amount in the disbursements journal or checkbook and write a check to the patient for the amount to be refunded. 3. Ask the proper person to sign the check. 4. Post the refund as a negative payment to the patient's ledger card or account. 5. Make a copy of the check, and mail the original to the patient.

List the steps from top to bottom to record disbursements, starting with setting up a new page in the journal.

1. Give each column a heading, to reflect the type of expense. 2. Fill in the date, payee's name, check number, and check amount on the check in the appropriate column. 3. Determine the expense category of the check. 4. Record the check amount in the column for the type of business expense. 5. If you have to split a check into two columns, record the total in the check amount column.

Starting with step 1 at the top, list the order of how to process a payment resulting in a credit balance.

1. Locate the patient's account in the computer or pull the ledger card. 2. Post the total amount of the payment received. 3. Subtract the payment amount from the previous balance and insert the new balance in the balance column. 4. Review the account thoroughly checking to see if any more receipts are expected on the patient's account. 5. If a credit balance is verified, adjust the credit balance off the patient's account.

List the steps to posting a non sufficient funds check, starting with step 1 on top.

1. Locate the patient's account or pull the patient's ledger card. 2. Create a new charge log using todays date and use the code to document NSF. 3. In the payment/adjustment column, place the amount of the check in parentheses. 4. Enter the charge amount in the charge column and add this amount to the patient's current balance.

List all steps of performing a trial balance, starting with the first step on top.

1. Total the check amount column. 2. Calculate the total for each expense column. 3. Add together all expense column totals. 4. Recheck every entry if the amounts do not match. 5. When you balance, carry forward all column totals to the disbursements journal for the next month.

Starting with step 1 at the top, list the steps to set up a disbursement journal.

1. Write in or key column headings for the basic information for each check. 2. Enter column headings for each type of business expense. 3. Write in column headings for deposits and the account balance. 4. Record the data from completed check under the appropriate column headings. 5. Subtract payments from the balance and add deposits.

When performing bookkeeping tasks, the medical assistant should strive for 95% accuracy 50% accuracy 99% accuracy 100% accuracy

100% accuracy

A patient is legally considered to be their own guarantor if they are 17 years old or over 18 years old or over 21 years old or over 19 years old or over

18 years old or over

The first phone call to a patient should be made if payment has not been received after 30-45 days. 120 days. 60-90 days. 30-60 days.

30-45 days.

A bank draft or order for payment is known as The payer A credit card A negotiable A check

A check

What is attached to the patient chart for the provider to check off services provided which produce charges? A bill A superbill A statement A ledger

A superbill

Match the key terms accounts payable, accounts receivable, age analysis, and single-entry account with their definitions.

Accounts payable Income or money owed by the business Accounts receivable Income or money owed to the business Age analysis Process of classifying and reviewing past-due accounts by age from the first date of billing Single-entry account Account consisting of only 1 charge

Which of the following is income or money owed to the business? Accounts payable Open-book account Disclosure statement Accounts receivable

Accounts receivable

Which of the following helps you keep on top of past-due accounts and determine which ones need follow-up? Ledger cards Age analysis Credit reports Billing analysis

Age analysis

Which of the following is the process of classifying and reviewing past-due accounts by age from the first date of billing? Credit report Accounts receivable Age analysis Single accounting

Age analysis

To make the deposit, place the following into the deposit bag. All checks The deposit slips All cash The patient ledgers

All checks The deposit slips All cash

Which of the following should be included in a patient statement? Balance from the previous month Medication prescribed Guarantor's name Patient's name and address

Balance from the previous month Guarantor's name Patient's name and address

Select all suggestions to assist in maintaining accuracy in bookkeeping and banking for the medical office. Perform bookkeeping once a year Be consistent Be organized Double check your work

Be consistent Be organized Double check your work

Superbills list which of the following items? Patient history CPT codes ICD-10 codes Charges

CPT codes ICD-10 codes Charges

Credit arrangements cannot be denied a person who has exercised rights under the Equal Credit Opportunity Act. Consumerism Act. Consumer Credit Protection Act. Fair Debt Collection Act.

Consumer Credit Protection Act.

After posting overpayments, the account balance will be a negative number, known as a(n) Charge Credit balance Overpayment Balance

Credit balance

When a check is returned due to NSF, what is the first action a medical assistant should take? Deduct it from the office checking account Add it to the patient's account. Add it back into the office checking account Deduct it from the patient's account

Deduct it from the office checking account

What should you always obtain when you make a deposit? Deposit receipt More deposit slips Withdrawal receipt Credit receipt

Deposit receipt

Which of the following is a written description of the agreed terms of payment? Disclosure statement Lending bureau statement Physician statement Patient statement

Disclosure statement

How do payers and offices prefer to receive their insurance payments? Electronically In cash In person Manually received

Electronically

List common banking tasks. Endorsing checks Writing checks Keeping checks Accepting checks

Endorsing checks Writing checks Accepting checks

Which act states that credit arrangements may not be denied based on a patient's sex, race, religion, national origin, marital status, or age? Equal Credit Opportunity Act Consumerism Act Fair Debt Collection Act Fair Practice Act

Equal Credit Opportunity Act

Which act states that credit arrangements may not be denied based on a patient's sex, race, religion, national origin, marital status, or age? Fair Practice Act Equal Credit Opportunity Act Fair Debt Collection Act Consumerism Act

Equal Credit Opportunity Act

Which act governs the methods that can be used to collect unpaid debts? Medical Practice Act of 1983 Fair Debt Collection Practices Act of 1977 Payment Plans of 1964 HIPAA Law of 1996

Fair Debt Collection Practices Act of 1977

Which of the following laws govern debt collection? County Federal City State

Federal State

Match the key terms guarantor, statute of limitations, statement, and open-book account with their definitions.

Guarantor Person financially responsible for the patient Statute of limitations State law that sets a time limit on when a collection suit on a past-due account can legally be filed Statement Patient bill Open-book account Account that is left open to changes that are made on an intermittent basis

List the advantages of using electronic banking. Improve cash flow Improve accuracy Improve productivity Improve patient care

Improve cash flow Improve accuracy Improve productivity

What does accounts receivable reflect on the practice? Success Neatness Patient care Income

Income

Which of the following should be included on a ledger card? Patient medical number Insurance carrier policy number Patient name Patient address

Insurance carrier policy number Patient name Patient address

Which of the following are benefits of having a patient pay the bill at the time of service? It brings income into the practice faster. It saves the cost of preparing and mailing statement. It allows the patient have an outstanding balance. It lets the medical assistant use the new credit card machine.

It brings income into the practice faster. It saves the cost of preparing and mailing statement.

What is the function of the "Balance Checkbook"? It sends out the checks monthly It calculates deposits each day It reconciles the monthly bank statement It displays the checkbook

It reconciles the monthly bank statement

What is the biggest advantage of electronic bookkeeping? It saves money It is a software program It saves time It is easy to learn

It saves time

What happens if an error goes undetected at the first link of bookkeeping documentation? Nothing, it always balances out. It will be found on the next link and corrected. It will be found at the end and corrected. It will be carried through all other links in the chain.

It will be carried through all other links in the chain.

Which of the following types of practices use cycle billing? HMOs Large practices Small practices Private hospitals

Large practices

What type of numbers are printed on the deposit slips? MICR numbers ICR numbers Medical record numbers Deposit numbers

MICR numbers

Which of the following systems uses a pegboard that allows you to record the payment on the patient's ledger card? Computerized office Manual paper system Accounts payable Accounts receivable

Manual paper system

Which of the following requires physicians to provide care to individuals who need it, regardless of their ability to pay? Medical ethics Lending Act Federal law County law

Medical ethics

How often is bank record reconciliation done in most practices? Once a day Once a month Once a week Once a year

Once a month

When the combination of insurance payments and patient payments exceeds the allowed charges, this is known as a(n) Payment Posting Overpayment Collection

Overpayment

What reminds you to add the payment to the balance, instead of subtracting it as you usually would do? Parentheses Commas Right slash Brackets

Parentheses

Which of the following are common collection problems? Patients who move without leaving a forwarding address Patients who pay their balances in full with a credit card Patients who have 2 insurance plans Patients who cannot pay

Patients who move without leaving a forwarding address Patients who cannot pay

List the three main groups that accounts payable fall into. Payroll Payments for supplies Taxes Patient payments

Payroll Payments for supplies Taxes

Which of the following types of patients will likely have the greatest challenges paying medical bills? Poor Insured Employed Elderly Chronically ill Uninsured

Poor Elderly Uninsured

What do most offices do to notify the patient, they have an immediate patient payment system? Let the insurance company notify the patient Nothing Tell them after the visit Post a sign

Post a sign

The superbill allows the provider to indicate information about the patient visit including Procedures provided Return visit Payment due Diagnosis

Procedures provided Return visit Diagnosis

What procedure needs to be followed before you can process a refund to the patient? Process a payment resulting in a credit Reconcile the bank statement Post a NSF check Prepare an age analysis

Process a payment resulting in a credit

Select the four principal types of endorsement. Qualified endorsement Special endorsement Blank endorsement Selective endorsement Restrictive endorsement

Qualified endorsement Special endorsement Blank endorsement Restrictive endorsement

What is an administrative task that involves comparing the office financial records, the checkbook, or disbursements journal? Accounting Depositing Reconciliation Statement checking

Reconciliation

Which of the following are common banking tasks. Shredding banking documents Reconciling bank statements Balancing of individual accounts Making deposits

Reconciling bank statements Balancing of individual accounts Making deposits

What might the software ask you to enter, that appear on the current bank statement, such as Patient payments Deposits not on the previous bank statement Service charges Checks not on the previous bank statement

Service charges

Which of the following should include the guarantor's name, previous balances, an itemized list of services and charges, payments from the patient or insurance during the month, and the total balance due? Receipt Allowances Narrative Statements

Statements

Which of the following is a law that sets a time limit on when a collection suit on a past-due account can legally be filed? Legal requirement Statute of limitations Truth in lending Medical authorization

Statute of limitations

Which act protects telephone subscribers from unwanted telephone solicitations, commonly known as telemarketing? Telephone Consumer Rights Act Telephone Consumer Protection Act of 1991 Telemarketing Laws Act Telecommunication Privilege Act

Telephone Consumer Protection Act of 1991

What does the checkbook display function allow you to review? The checkbook receipts The checks The checkbook register The reconciliations

The checkbook register

When using an electronic bookkeeping system, which of the following help save time? The computer performs repetitive tasks. The software has a pegboard built in. The software has built in tax tables. The computer automatically performs mathematical calculations.

The computer performs repetitive tasks. The software has built in tax tables. The computer automatically performs mathematical calculations.

What can you ask a third party when you find the patient is no longer at that address? The new address For their information The new phone number For payment

The new address The new phone number

What information is included in the "Display Checkbook"? The payee The ABA number The date The check number The amount

The payee The date The check number The amount

List the differences when using electronic banking compared to traditional methods. The software can send thank you letters to patients, who pay on time. The software has a password to protect the checkbook and banking forms. The software does reconciling for you. The software calculates the balance for you.

The software has a password to protect the checkbook and banking forms. The software does reconciling for you. The software calculates the balance for you.

When you select "Record Deposits" a message will prompt you to enter The writer's name The ABA number The amount of the check The practice's name

The writer's name The ABA number The amount of the check

Which of the following are benefits of accounts receivable insurance policies? They pay to re-create any records that are lost. They can protect the practice if its AR records are destroyed. They can pay when a large number of patients do not. They can protect the practice's cash flow.

They can protect the practice if its AR records are destroyed. They can pay when a large number of patients do not. They can protect the practice's cash flow.

List all the reasons a deposit should be done as often as possible. To reduce inaccurate recordings To reduce cash To reduce loss To reduce theft

To reduce inaccurate recordings To reduce loss To reduce theft

What information in a patient's financial file should be verified before turning it over to a collection agency? Patient's credit history Total amount of debt Patient's last known address Description of office actions to collect the debt

Total amount of debt Patient's last known address Description of office actions to collect the debt

Which of the following comes under Regulation Z of the Consumer Credit Protection Act? Financial Payment Act Truth in Lending Act Fair Lending Act Patient Disclosure Act

Truth in Lending Act

Accounts that are not paid by patients and the office cannot collect on, are known as: Collectable Uncollectable Debt Paid

Uncollectable

The practice will adjust the remaining balance off the account if an account is found to be never collected, which is called a(n): Collectable account Paid account Debit account Uncollectable account

Uncollectable account

To protect a practice from lost income because of nonpayment, the practice may buy office management insurance. malpractice insurance. accounts receivable insurance. accounts payable insurance.

accounts receivable insurance.

Some software programs assign the next available check number to each new check you enter automatically sometimes manually for some transactions

automatically

What should you use to avoid losing your place when bookkeeping? correction tape pencils red pens check marks

check marks

Fees charged by a medical office for NSF must be clearly stated and in plain view stated in office procedure manual approved by the patient approved by the insurance carrier

clearly stated and in plain view

The date of last activity on the account, the description of actions taken to collect the debt, and response received to collection attempts are pieces of information that must be given to the credit collection agency. billing department. patient's spouse. patient's accountant.

credit collection agency.

The information on each patient's ledger card must match the day's transactions. deposit slip. medical record. daily log.

daily log.

Federal and state laws govern insurance payments. debt collection. doctor visits. payment plans.

debt collection.

Any payment the practice makes for goods or services is called a(n) reconciliation. receivable. remittance disbursement.

disbursement.

superbill is also known as a(n) encounter form. statement form. billing analysis. age analysis.

encounter form.

Advance notice of the addition of finance charges or late charges to a patient's past-due account may be given by calling the patient at home or work. giving the patient a pamphlet describing the office's billing practices. posting a sign at the reception desk. including a note on the statement.

giving the patient a pamphlet describing the office's billing practices. posting a sign at the reception desk. including a note on the statement

A guarantor is a person who refuses payment. guarantees payment. negates payment. unauthorizes payment.

guarantees payment.

Patients who cannot pay their bills are known as profit cases. adversity cases. hardship cases. responsive cases.

hardship cases.

When making collection calls, a medical assistant should call patients at their convenience. relatives' home. home. workplace.

home.

According to the AMA, it is acceptable to assess finance charges or late charges on past-due accounts if the patient is notified in advance. by the physician. when it happens. at work.

in advance.

Sort dollar bills by denomination, from largest to smallest smallest to largest

largest to smallest

Patient financial records are considered top secret. part of the medical record. public record. legal documents.

legal documents.

Computerized offices post payments to a patient's account using a calculator. a pegboard. office billing hardware. office billing software.

office billing software.

The accounts receivable records shows the total amount owed by the practice owed by the insurance companies owed to the patients owed to the practice

owed to the practice

The Telephone Consumer Protection Act of 1991 prohibits autodialed calls to patients' hospital rooms. cellular and paging numbers. patients' places of residence with prior permission emergency service providers.

patients' hospital rooms. cellular and paging numbers. emergency service providers.

The person who writes the check is known as the collector. payer. negotiator bookkeeper.

payer.

After endorsing the check the medical assistant should post the payment to the running list of checks. put in the cash drawer. post the payment to the patient ledger card. post the payment in the cash box.

post the payment to the patient ledger card.

Some patient accounts remain unpaid because patients have moved without leaving a forwarding address. This is known as a jump. hardship case. bail. skip.

skip.

A third-party endorsement is also called a(n) restrictive endorsement blank endorsement qualified endorsement special endorsement

special endorsement

In cycle billing, the accounts are split into groups and statement mailing dates are staggered. computerized. activated. not staggered.

staggered.

The statute of limitations is a office policy HIPAA guideline state law federal law

state law

A properly written check must include the signature of the payer an itemized list of what payment is for the name of the payee the date the amount of money to be paid

the signature of the payer the name of the payee the date

Watching for changes in recording disbursements is called summaries. disbursements. tracking. receivables.

tracking

As proof of the payment sent when writing a check electronically you will record the transaction deposit account withdrawal

transaction

The goal of the Fair Debt Collection Practices Act of 1977 is to eliminate abusive, deceptive, or fair and just practices. collection letters. unfair debt collection practices. collection calls.

unfair debt collection practices.