Copyright © 2008 Delmar Learning. All rights reserved. Chapter 13 Fees, Credit, and Collection
Copyright © 2008 Delmar Learning. All rights reserved. 2 Objectives Define credit and collection terminology and use collection abbreviations Explain fee schedules and fee discounts Discuss fees with patients and communicate fee policies Understand billing methods Report how billing services are used in the medical office Describe credit laws List the services of a credit bureau State the importance of aging accounts and dun messages Pursue telephone debt collection tactfully Determine when to seek and how to select a collection agency Decide when to use small claims court Explain federal bankruptcy and garnishment laws Trace a debtor who has moved and left no forwarding address
Copyright © 2008 Delmar Learning. All rights reserved. 3 Heart of the Health Care Professional Service –Answering questions and explaining fees is a courtesy to the patient.
Copyright © 2008 Delmar Learning. All rights reserved. 4 History of Credit Credit –Latin word “credere” –To trust or to believe Personal integrity Ability to meet financial obligations
Copyright © 2008 Delmar Learning. All rights reserved. 5 History of Credit The Great Depression –Start of credit for medical services Today –Payment expected at time of service –Health insurance contract
Copyright © 2008 Delmar Learning. All rights reserved. 6 History of Credit Credit and collection information –Complete, accurate Registration Personal information Financial history Employment information –Includes insurance information Used to bill insurance company
Copyright © 2008 Delmar Learning. All rights reserved. 7 Fee Schedules Every physician establishes fees –Specialty –Education –Experience –Geographic location –Overhead costs
Copyright © 2008 Delmar Learning. All rights reserved. 8 Fee Schedules Quantum merit –“As much as he deserves” Lists of fees for services –Required by federal regulations –Separate schedules Medicare Managed care Private pay
Copyright © 2008 Delmar Learning. All rights reserved. 9 Fee Schedules Medicare fees –Participating fee –Nonparticipating fee –Limiting charge –Example 13-1
Copyright © 2008 Delmar Learning. All rights reserved. 10 Fee Schedules Changes in fees and discounts –Hardship discounts Dependent on income level Hill-Burton Act –Professional courtesy –Copayment waiver Not recommended
Copyright © 2008 Delmar Learning. All rights reserved. 11 Fee Schedules Discussing fees –Fee-for-service –Copayment collected at visit –Communicating fees Clear and accurate Figure 13-1 Example 13-3
Copyright © 2008 Delmar Learning. All rights reserved. 12 Fee Schedules Discussing fees –Signs of a “deadbeat” Questionable employment record No business or home telephone Many moves of residence A motel address
Copyright © 2008 Delmar Learning. All rights reserved. 13 Fee Schedules Discussing fees –Signs of a “deadbeat” Record of doctor hopping No referral No insurance Incomplete registration form
Copyright © 2008 Delmar Learning. All rights reserved. 14 Billing Payment at the time of service –Emphasize incentives to patient Example 13-4 –Meeting with the patient Face-to-face Discussion of outstanding balance
Copyright © 2008 Delmar Learning. All rights reserved. 15 Billing Multipurpose billing form –Bill –Insurance form –Routing document –Receipt –Figure 13-3
Copyright © 2008 Delmar Learning. All rights reserved. 16 Billing Monthly itemized statement –Sent to patients –Charges, payments, adjustments –Figure 13-5 –Explain professional fees in an itemized billing statement Procedure 13-1
Copyright © 2008 Delmar Learning. All rights reserved. 17 Billing Monthly itemized statement –Office calculator –Perform math functions using a calculator Procedure 13-2 –Prepare and post to patient’s ledger card Procedure 13-3
Copyright © 2008 Delmar Learning. All rights reserved. 18 Billing Cycle billing –Billing distributed throughout month Distributes related duties –Prepare monthly itemized billing statement Procedure 13-4
Copyright © 2008 Delmar Learning. All rights reserved. 19 Billing Cycle billing –Credit card billing Patient pays fee with credit card –Debit cards Off-line On-line
Copyright © 2008 Delmar Learning. All rights reserved. 20 Billing Cycle billing –Individual responsibility program Patient pays physician Insurance reimburses patient –Billing services Business that handles billing Saves office money and time
Copyright © 2008 Delmar Learning. All rights reserved. 21 Billing 1. Itemized fees for professional services with line-by-line description. 5. Patient’s payment check received, listing check number. 4. Billed patient 20 percent copayment. 3. Payment received on account from insurance, listing voucher number. United paid 80 percent. 2. Insurance claim submitted showing dates or service billed.
Copyright © 2008 Delmar Learning. All rights reserved. 22 Credit and Collection Laws Fair Debit Collection Practices Act –Guidelines for collection practices Equal Credit Opportunity Act –If credit is extended to one patient, it must be extended to all who request it
Copyright © 2008 Delmar Learning. All rights reserved. 23 Credit and Collection Laws Federal Truth in Lending Act –Disclosure form to detail interest –Figure 13-8 –Establish financial agreement with patient Procedure 13-5
Copyright © 2008 Delmar Learning. All rights reserved. 24 Credit and Collection Laws Truth in lending consumer credit cost disclosure –Disclose all costs –Interest, late fees –Prior to time of service
Copyright © 2008 Delmar Learning. All rights reserved. 25 Collections Three types of accounts –Open-book account –Written-contract account –Single-entry account Aging accounts –Breakdown of days overdue
Copyright © 2008 Delmar Learning. All rights reserved. 26 Collections Office collection problem solving –Verifying checks Nonsufficient funds Bad check preventive measures –Dun messages Dun = To make a loud noise Payment reminder phrase
Copyright © 2008 Delmar Learning. All rights reserved. 27 Collections Telephone collections –Perform debt collection by telephone Procedure 13-6 –Insurance check sent to patient Assignment of Benefits –Solutions for payment excuses
Copyright © 2008 Delmar Learning. All rights reserved. 28 Collections Collection letters –Figures and Collection agencies –Business that collects overdue accounts
Copyright © 2008 Delmar Learning. All rights reserved. 29 Collections Take collection action –Write off an uncollectible account then post money from a collection agency –Procedure 13-7
Copyright © 2008 Delmar Learning. All rights reserved. 30 Collections Small claims court –Inexpensive –Judgment by court –Physician still has to pursue payment –File an uncollectible account in small claims court Procedure 13-8
Copyright © 2008 Delmar Learning. All rights reserved. 31 Collections Estate claims –Claim on estate of deceased patient Bankruptcy –Debtor protected by court –Creditor cannot send further statements