Chapter 27 Mod 4
What is the management of debt incurred and not yet paid?
Accounts payable
Which term refers to money that is owed to the medical facility?
Accounts receivable
A patient is taking advantage of a promotion offering a 10% discount on a procedure in a dermatology office. How is the discount listed on the patient ledger?
Adjustment
Where should a medical assistant enter the write-offs and disallowances in the ledger account?
Adjustment Column
Where should a medical assistant enter write-offs and disallowances in the ledger account?
Adjustment Column
Where should a medical assistant enter the write-offs and disallowances in the ledger account?
Adjustment column
Which types of checks can a medical assistant accept?
Checks from an insurance carrier of a patient
The medical assistant tries to trace the debtor on the internet by using all of the debtor's information available in the hospital records but remains unsuccessful. Which final step is taken by the medical assistant to ensure collection?
Consult a collection agency to collect the bill
What should a medical assistant do in the case of receiving a patient's check back marked "nonsufficient funds (NSF)"?
Contact the patient and alert him or her to the problem
The obituary notice of a former patient appears in the newspaper, and the medical assistant recalls that the patient had an outstanding balance with the medical practice. How should the medical assistant attempt to collect the balance due on the deceased patient's account?
Contact the patient's estate within 30 days
The obituary notice of a former patient appears in the newspaper, and the medical assistant recalls that the patient has an outstanding balance with the medical practice. How should the medical assistant attempt to collect the balance due on the deceased patient's account?
Contact the patient's estate within 30 days.
When an account is overpaid, what kind of balance occurs?
Credit
Which ledger card column is used to enter the payments received on an account?
Credit
How often are transactions for professional services posted to the patient's ledger?
Daily
Which term is used to refer to the cash amount that are paid out?
Disbursements
Which term is used to refer to the cash amounts that are paid out?
Disbursements
Which action is most appropriate when a patient makes a request to make two or three monthly payments to settle an account?
Draw up a written credit agreement with the patient, stating the minimum amount due each month
Which is the form that is attached to a chart and on which the healthcare provider notes the charges and diagnosis?
Encounter form
A document sent by the insurance company to the provider and the patient explaining the allowed charge amount, the amount reimbursed for services, and the patient's financial responsibilities is called a?
Explanation of benefits
In March 1978, what Act went into effect in order to eliminate abusive, deceptive, and unfair debt collection practices?
Fair Debt Collection Act
When does a medical assistant use an online baking service?
For bill payment
Which is the term for the person who is responsible for a bill?
Guarantor
Who is legally responsible for the entire medical bill?
Guarantor
The medical assistant finds an overdraft check for a patient's hospital bill of $20, which has a bank fee of $15 for the overdraft. What amount should the medical assistant request from the patient?
Hospital bill and bank fee
Which is an advantage of using small claims court to collect delinquent accounts?
Inexpensive
A medical assistant tells a first-time patient that certain details are needed to prepare a record to maintain the account. Which details should the medical assistant request?
Insurance identification Name and address of the guarantor Home and business telephone numbers
A patient purchases an item but does not pay for it at the time of purchase. Upon receipt, the patient notes that the document describing the items purchased and the amount due is missing. Which document does the patient require?
Invoice
Which statement is true regarding a cashier's check?
It is a check drawn on the bank, instead of an individual account
A bill had been returned to the medical office with the notation "address unknown." Which is the best way for this to be handled by the medical assistant?
It may be a deliberate attempt to "skip out" o the bill; try to call the patient.
Which document is an itemized list of goods shipped that specifies the price and the terms of a sale?
Itemization
Checks that are received by the medical facility should be endorsed with which type of endorsement?
Restrictive
A healthcare provider deposits a certain percentage of income into an account each month; the account has no minimum balance requirement and draws interest on the deposited money at the lowest prevailing rate. Which type of account does the provider have?
Savings account
Which is another name for a bill sent to a patient on a monthly basis?
Statement
A medical assistant calls a debtor four times between 11AM and 12PM and asks, with the utmost respect, about the bill to be paid. The patient says that this is not the proper way to be reminded about the bill. Why did the patient make this statement?
The assistant made repeated telephone calls
To successfully reconcile a bank statement means what?
The bank records and the medical office records are in agreement
A medical assistant notices a patient's check has been returned with an "NSF" stamp. Which is implied?
The patient who has written the check has insufficient funds
Which describes a blank endorsement?
The payee signs only his or her name on the back of the check
What is an endorsement?
The signature and other writing on the back of a check
A medical assistant (MA) receives a check from a patient for care. The MA looks for a perforation on one side of the check, looks for familiar American Bankers Association (ABA) and routing numbers, and makes sure it is not a third-party check. What is the purpose of checking this information?
This helps to prevent the acceptance of fraudulent checks
A ____ file is a chronologic file used as a reminder that something must be dealt with on a certain date.
Tickler
After an agreement has been made with patient to accept monthly installments, the regulations of which legislation apply to the written contract?
Truth in Lending Act
What document must be provided to the patient if the healthcare facility and patient agree that payment will be made in more than four installments?
Truth in Lending Statement
Which information is provided to the patient when credit is extended to cover the cost of a procedure?
Truth in Lending Statement
Petty Cash Account
Used for small items Used for disbursing small amounts of money Has a journal into which an entry for each expenditure is made
Which type of check contains a detachable form indicating the reason for payment?
Voucher Check
A medically indigent patient pays the reduced provider's fee of about $250/ How will the medical assistant record the remaining amount?
Write it off as an adjustment in the debit column
Which of these actions indicates that the debt collector is following the Fair Debt Collection Practices Act?
Calling the debtor only after 8AM and before 8PM
When would an office receive more money than the initial charge from a patient?
A nonsufficient funds check with charges added for nonsufficient funds (NSF) fee
Who is usually responsible for the general aspects of financial management in a medical practice, such as preparing detailed financial report, financial planning, and preparing tax returns?
A professional accountant
The medical assistant sends a collection letter stating that is the payment is not received by a certain date, the account will be given to a collection agency or legal proceeding may be pursued in small claims court. How old is the patient's account?
120 days old
A medical assistant finds that a debtor has died without paying the bill. Within how many days should the medical assistant send the bill owed by the deceased patient to the executor of the deceased debtor's estate?
30
It is considered an offer of credit when the healthcare facility allows the patient to make more than ______ payments on his or her balance.
4
Which percentage most accurately reflects the portion of the patient payments collected that a collection agency retains?
40%
Which describes a pegboard system?
A manual accounting system in a medical office
What type of endorsement is used only when the check is to be cashed or deposited immediately and has the payee sign just his or her name?
Blank endorsement
Which term refers to the recording of business and accounting transactions?
Bookkeeping
A medically indigent patient is unable to pay the bills for the rehabilitation services provided by the provider. How will the medical assistant ensure that the patient pays the debt?
By accepting help from collection agencies
Which part of a check's nine-digit routing transit number (RTN) identified the individual bank from which the check has drawn?
Last six digits
Where should the charges and payments be recorded for each patient?
Ledger
A medical assistant prepares a report on the accounts that require collection and sends it to a collection agency. What information will the collection agent find in the report?
Name of the debtor Address of the debtor Full amount of the debt
The amount someone is paid after taxes and other deductions have been subtracted is called?
Net pay
A bank provides an extension of credit to a depositor, who draws a check for more than the amount on deposit in the account. Which term is used to describe this scenario?
Overdraft
Which term indicates the name of a check written on an account without adequate funds to cover it?
Overdraft
To pay the healthcare provider's fee, a patient writes a check in favor of the provider. Which is the term used to describe the provider in this scenario?
Payee
Who is the person named on a check as the recipient of the amount shown?
Payee
Which term refers to entering charges on a ledger?
Posting
Which is the purpose of the Fair Debt Collection Practices Act?
Prevents unfair collection measures
Which type of endorsement typically uses the phrase "without recourse" written on a check?
Qualified
What type of endorsement usually includes the words "without recourse"?
Qualified endorsement
