Ch. 20 - Patient Collections & Financial Management

Question 1

Another name for a patient bill

Answer 1

Statement

Question 2

Patient account that receives periodic charges

Answer 2

Open-book account

Question 3

Document that tracks accounts by the date of last payment

Answer 3

Age analysis

Question 4

Patient billing in which accounts are split in groups with staggered statement mailing dates

Answer 4

Cycle billing

Question 5

Money owed to other businesses by the practice

Answer 5

Accounts payable

Question 6

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

Answer 6

Truth in Lending Statement

Question 7

Company that tracks individuals credit histories

Answer 7

Credit bureau

Question 8

Account in which services to be performed are written out and the document is signed by the person performing the service and the person receiving the services

Answer 8

Written-contract account

Question 9

Account consisting of only one charge or one date of service

Answer 9

Single entry account

Question 10

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

Answer 10

Accounts receivable

Question 11

Person who is responsible for a patient’s debt

Answer 11

Guarantor

Question 12

The balance resulting from an overpayment on a patient’s account

Answer 12

Credit balance

Question 13

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

Answer 13

Credit

Question 14

An electronic means for patients to make payments to a medical facility after the patient visit

Answer 14

Patient portal

Question 15

A personal who receives a check in payment

Answer 15

Payee

Question 16

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

Answer 16

Power of attorney

Question 17

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

Answer 17

Journalizing

Question 18

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

Answer 18

Reconciliation

Question 19

Document or instrument that is legally transferrable from one person to another

Answer 19

Negotiable

Question 20

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

Answer 20

Third-party check

Question 21

The systemic recording of business transactions

Answer 21

Bookkeeping

Question 22

A person who pays a bill or writes a check

Answer 22

Payer

Question 23

A state law that sets a time limit on when a collection suit on a past-due account can legally be filed

Answer 23

Statue of limitations

Question 24

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

Answer 24

Endorsement

Question 25

Amounts "written off" the patient account, usually due to insurance company contracted fees

Answer 25

Adjustments

Question 26

What does the superbill include?

Answer 26

Includes the charges for services rendered on that day

Question 27

A practice may buy accounts receivable insurance to protect the practice from what?

Answer 27

Lost income because of nonpayment

Question 28

The Fair Debt Collection Practices Act or 1977 governs . .

Answer 28

the methods that can be used to collect unpaid debt

Question 29

Free treatment for hardship cases should be . . .

Answer 29

Undertaken very carefully to ensure that all patients in the same financial situation are extended the same financial consideration

Question 30

What is an acceptable form of payment in many medical practices?

Answer 30

Cash, Debit Card, Check, Credit Card

Question 31

A hardship case is defined as a person who is . .

Answer 31

Poor, underinsured, or uninsured

Question 32

What is the purpose of an age analysis?

Answer 32

Determine which accounts are past due, need follow-up, need turned over to collections, and classify & review past-due accounts

Question 33

Most practices begin the collection process with what?

Answer 33

Statement, telephone calls, and letters

Question 34

When does the patient's first bill, or "statement," occur?

Answer 34

At the time of service with receipt of the superbill

Question 35

When sending a statement for the care of a minor, who should the statement be addressed to?

Answer 35

The guarantor

Question 36

Example of an accounts payable item includes . . .

Answer 36

The monthly lease, employee salary, and an insurance premium

Question 37

What does the practice do if a patient's check does not clear due to NSF?

Answer 37

Adjust the account, accordingly, adding the amount back to the account.

Question 38

What do you do when a check for payment from a patient is received some time after the patient's visit?

Answer 38

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

Question 39

What is the first step in reconciling a bank account?

Answer 39

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

Question 40

What is the purpose of a daily log?

Answer 40

Provide a record of each patient seen

Question 41

The act that requires debt collectors to treat debtors fairly, prohibiting certain collection tactics such as harassment, false statements, threats, and unfair practices.

Answer 41

Fair Debt Collection Practices Act