Medical Practice Accounting: Credit Policies, Billing Procedures and Making Collections
Medical Practice Accounting:
Credit Policies, Billing Procedures and Making Collections
Darcy Sartor
MBC – Carrington College
Ms. Scott
May 2, 2011
Medical Practice Accounting:
Credit Policies, Billing Procedures and Making Collections
“About the time we can make the ends meet, somebody moves the ends.” Herbert Hoover
The main aim of any business is to earn profits and also to remain solvent, i.e., it should have enough resources to pay its employees, creditors and to carry on with the day-to-day activities of the business. The ultimate goal of any medical billing system is to bring the patients ' account balances to zero as soon as possible after treatment has been rendered. It is important to set up a system designed to bill quickly and accurately while accomplishing this goal. This paper has been written on the basis that all patient information was received, entered and billed while following proper office protocol and the medical office is completely automated (paperless).
In order to receive the highest percentage of payments back on the billing it is imperative to form and maintain a system and solid billing habits. When treatments are billed in a clear, professional manner the patients will be encouraged to promptly remit payment. Erratic and sloppy billing practices can cause patients to conclude that payments are unimportant. No matter what system is used it is easy to prevent a negative outcome if a sound credit policy and proper billing procedures are followed.
Processing Payments
The act of processing payments is called “posting.” All payments received need to be credited against the patients account immediately. Once posted the system may show a balance due. This balance due is then billed to either the patient or a secondary insurance carrier, if there is one and is also known as balance billing (the act of
Credit Policies, Billing Procedures and Making Collections
Darcy Sartor
MBC – Carrington College
Ms. Scott
May 2, 2011
Medical Practice Accounting:
Credit Policies, Billing Procedures and Making Collections
“About the time we can make the ends meet, somebody moves the ends.” Herbert Hoover
The main aim of any business is to earn profits and also to remain solvent, i.e., it should have enough resources to pay its employees, creditors and to carry on with the day-to-day activities of the business. The ultimate goal of any medical billing system is to bring the patients ' account balances to zero as soon as possible after treatment has been rendered. It is important to set up a system designed to bill quickly and accurately while accomplishing this goal. This paper has been written on the basis that all patient information was received, entered and billed while following proper office protocol and the medical office is completely automated (paperless).
In order to receive the highest percentage of payments back on the billing it is imperative to form and maintain a system and solid billing habits. When treatments are billed in a clear, professional manner the patients will be encouraged to promptly remit payment. Erratic and sloppy billing practices can cause patients to conclude that payments are unimportant. No matter what system is used it is easy to prevent a negative outcome if a sound credit policy and proper billing procedures are followed.
Processing Payments
The act of processing payments is called “posting.” All payments received need to be credited against the patients account immediately. Once posted the system may show a balance due. This balance due is then billed to either the patient or a secondary insurance carrier, if there is one and is also known as balance billing (the act of
References: Pearson Prentice Hall (2007). Guide to Medical Coding and Billing, Second Edition, Chapter 7. New Jersey: Pearson Education, Inc. Schiff, M. (2005). Medical Billing Handbook, Chapter 7. New Jersey: Pearson Education, Inc. Herbert Hoover, 31st President of the United States. Quote taken from: http://www.brainyquote.com Aastha Dogra, (1/6/2010). The Purpose of Accounting. Buzzle.com, Intelligent Life on the Web:http://www.buzzle.com/articles/purpose-of-accounting