CH 20: Patient Collections and Financial Management

document signed by the patient and practice representative when a payment agreement is met, consisting of four or more payments

Truth in Lending

describe what cycle billing means and give an example

accounts are divided into groups alphabetically and sent out at different dates. example being sending statements for the last names A-N on the 1rst and N-Z on the 15th.

money owed to other businesses by the practice

accounts payable (A/P)

money or funds that are owed to the practice for services provided

accounts receivable (A/R)

if a patient's check does not clear due to nonsufficient funds (NSF), the practice should

adjust the account accordingly, adding the amount back to the account

document that tracks accounts by the date of last payment

age analysis

the ABA number on a check appears

as a fraction in the top-right side of the check

free treatment for hardship cases should be

at the provider's discretion

the patient's first bill, or "statement," occurs

at the time of service with receipt of the superbill

the systematic recording of business transactions

bookkeeping

why is it important that collection proceedings not be threatened unless the proceedings will take place on the date given to the patient?

by law, you cannot threaten to send an account to a collection agency unless it will actually be sent that cutoff date

_____ shows how much cash is available to cover expenses, invest, or take as profits

cash flow statement

a check purchased in a bank and signed by a bank representative, usually purchased for a large purchases requiring guaranteed payment or by those without personal checking accounts

certified check

sequentially, the first step in reconciling a bank account is to

check the closing balance on the previous bank statement against the opening statement balance on the new bank statement

which of the following checks could be used by the physician if she forgot her checkbook and wished to make a withdrawal from her account?

counter check

allowing a patient to pay for services at a time other than the time of service

credit

the balance resulting from an overpayment on a patient's account

credit balance

company that tracks individuals' credit histories

credit bureau

whereas assets are goods or properties that are part of the worth of a practice, liabilities are amounts owed by the practice on a(n) _____

creditors/assets

patient billing where accounts are split in groups with staggered statement mailing dates

cycle billing

a best practice for depositing checks is to

deposit checks on a daily basis in person at the bank

the purpose of an age analysis it to

determine which accounts to turn over to collections determine how much money is owed to the practice and how long it has been outstanding classify and review past-due accounts determine how much money is owed to the practice and which accounts to turn over to collections

the signing or stamping of the back of a check with the proper identification of the person or organization to whom the check is written, to prevent the check from being cashed if it is stolen or lost

endorsement

what "tone" should be used when making initial phone calls about the patient's overdue account. Why?

friendly and sympathetic you should assume the patient simply forgot

the Fair Debt Collection Practices Act of 1977

governs the methods that can be used to collect unpaid debts

person who is responsible for a patient's debt

guarantor

a superbill

includes the charges for services rendered on that day

which of the following is an acceptable form of payment in many medical practices?

insurance debit card check credit card

medical practices prefer electronic banking because

it improves productivity, cash flow, and accuracy

the process of logging charges and receipts in a chronological list in the daily log

journalizing

a practice may buy accounts receivable insurance to protect the practice from

lost income because of nonpayment

which of the following features is not available with all medical office electronic banking software programs?

manage payroll

a third-party check

may be accepted if it is from the patient's health insurance company

financial instrument of guaranteed payment, which may be purchased from a bank, a post office, or some convenience stores

money order

a check that is ____ is legally transferable from one person to another

negotiable

document or instrument that is legally transferable from one person to another

negotiable

patient account that receives periodic charges

open-book account

when an insurance company makes a payment to a medical practice for services for services rendered to a patient and the patient makes a payment on the account, causing it to exceed the allowed charges, it is called

overpayment

everyday, you must update the accounts receivable record, which shows the total _____ to the practice

owed

a person who receives a check in payment

payee

a person who receives a check is known as a(n) _____

payee

a person who pays a bill or writes a check

payer

list the three main types or groups of accounts payable and give one example of an accounts payable item for each group

payments for supplies, equipment and practice: related products and services payroll, employee checks (maybe the largest amount payable) taxes owed to federal, state and local governments and agencies

a practitioner is likely to have three different types of checking accounts: a(n) _____ account, a(n) _____ account for office expenses, and a(n) _____ earning account.

personal business interest

a patient's ledger card would not include the

physician's DEA number

a hardship case is defined as a person who is

poor underinsured uninsured

the legal right to act as the attorney or agent of another person, including handling that person's financial matters

power of attorney

which formula would be used to balance a day sheet or a patient's ledger?

previous balance + today's charges - (payments - adjustments) = current balance

the purpose of the daily log is to

provide a record of each patient seen payment that have been received

a monthly comparison of the office financial records with bank records to ensure that they are consistent and accurate

reconciliation

when a check for payment from a patient is received some time after the patient's visit, the medical assistant should

record it on the patient's ledger card and day sheet on the day received

the _____ endorsement is the safest type of endorsement to use because it will allow the check to be deposited only in a specified account

restrictive

to prevent theft of checks, always put the checkbook in a(n) _____ place when it is not in use and file deposit receipts promptly. if they are lost, you have no _____ of the deposit

securely locked record/proof

in the daily log you enter the name of each patient seen that day. across from the name, you record the _____ provided, the fee _____, and the _____ received.

services charged payment

account consisting of only one charge or one date of service

single-entry account

another name for a patient bill

statement

most practices begin the collection process with

telephone calls, letters or statements

which item of a check identifies the bank from which the check originated?

the ABA number and MICR numbers

which of the following conditions should be met in order for a check to be negotiable?

the check must be written and signed by the payer the check must be payable to the payee the check must be include the amount of money to be paid the check must have the name of the bank on the check

when sending a statement for the care of a minor, the statement should be addressed to

the guarantor

an example of an accounts payable item is

the monthly lease, employee salary, and an insurance premium are all examples

explain the assumption that should be made when a divorced parent brings a child in for treatment (if legal documentation of payment arrangements has not been provided to the office.)

the parent brining the child in for treatment is responsible for the payment (considered the guarantor).

a check made out to one recipient and given in payment to another, for instance, an insurance check made out to a patient, which is then signed over to the medical practice

third-party check

explain why it is important to reconcile the monthly bank statement with your checkbook balance

to ensure that they are consistent with each other and accurate

why is it advantageous to make frequent bank deposits?

to reduce theft, loss, bounced checks and inaccurate recordings

an accounts payable record shows the amounts the practice owes to _____

vendors

a business check with an attached stub, which is kept as a receipt

voucher check

if you make an error when writing a check, you should

write VOID in ink across the front of the check and file it in numeric order with the returned checks

account where services to be performed are written out and the document is signed by the person performing the service and the person receiving the services

written-contract account

in an open-book account, does the time limit for collection begin when the account is initiated? why or why not?

yes because an open-book account uses the date of the last charge for each illness as the start date to determine the time limit for that specific debt

in which of the following denominations are traveler's checks printed?

$10, $20, $50, $100

a patient's beginning account balance is $30.00. the charge for medical services today is $40.00. a payment is made on the account today in the amount of $50.00. what is the current balance due on this account?

$20.00

what is the reconciled ending balance for a checking account with a balance of $1,800.00 on the month-end statement from the bank, with $3,200.00 deposited during the month, which is not yet showing, and $600.00 in outstanding checks that have not yet posted to the account?

$4,400.00