Collections in the Medical Office

1. 10 Collections in the Medical Office

2. 10-11 10.4 Working with Collection Agencies • A collection agency is an outside firm hired to collect on delinquent accounts • Practice no longer contacts the patient if the account is turned over to a collection agency • Often paid on the basis of the amount of money they collect • When payment is received from a collection agency, it must be posted to the patient’s account • Information found on the statement provided by the agency • Exercise 10-1

3. 10-12 10.5 Writing Off Uncollectible Accounts • When all collection attempts are exhausted, the collection process is ended • Amount owed is often called an uncollectible account or a bad debt, and it is written off the practice’s expected accounts receivable • A write off is a balance that has been removed from a patient’s account • Exercise 10-2

4. 10-13 10.6 Using a Patient Aging Report for Collections • An aging report shows the patient’s chart number and name, and the amount of unpaid charges in each of these categories: • Current: Up to 30 days • Past: 31 to 60 days • Past: 61 to 90 days • Past: 91 to 120 days • Past: More than 120 days • Exercise 10-3

5. 10-14 10.7 Adding an Account to theCollection List • Overdue accounts are added to a collection list • The collection list is designed to track activities that need to be completed as part of the collection process • Ticklers or collection reminders are displayed as collection list items • A tickler is a reminder to follow-up on an account that is entered on the collection list

6. 10-15 10.7 Adding an Account to theCollection List (Continued) • The Collection List dialog box displays ticklers that have been entered into the database

7. 10-16 10.7 Adding an Account to theCollection List (Continued) • Tickler Item dialog box • Exercise 10-4 Tickler tab Office Notes tab

8. 10-17 10.8 Creating Collection Letters • Before collection letters can be sent in Medisoft: • Patient-responsible tickler item must be entered in the collection list • Collection Letter report must be created • Report is generated when the Patient Collection Letters option is selected on the Reports menu

9. 10-18 10.8 Creating Collection Letters(Continued) • The Patient Collection Report lists patients with overdue accounts to whom statements have been mailed

10. 10-19 10.8 Creating Collection Letters(Continued) • After printing collection letters, an account alert appears in the Transaction Entry, Quick Ledger, and Appointment Entry windows • There are three account alert abbreviations: • RB – remainder balance • DP – delinquent on payment plan • IC – in collections • Exercise 10-5

11. 10-20 10.9 Creating a Collection Tracer Report • A collection tracer report is used to keep track of collection letters that were sent • The report lists: • Tickler item number • Responsible party • Chart number • Account balance • Date collection letter was sent • Reasons the account is in collections • Created via the Collection Tracer Report feature on the Reports menu • Exercise 10-6