# Small Balance Write off, collections, and bad debt



## micki127 (Feb 5, 2017)

Hi,

What is the typical small balance write off amount? What is the lowest amount you would consider sending to collections and/or just write off as bad debt?

Thank you in advance for your input!
Micki


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## JCaillouet (Feb 6, 2017)

Uhm..

Isn't this more of a case by case basis? Some adjust for $5.00. Some adjust for $25.00. Some send to collections for general purpose etc.

What is _your_ provider's preferred guidelines for this?


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## micki127 (Feb 6, 2017)

Yes, this is a case by case basis but I was looking for a general rule of thumb or an average that other practices were doing. As of right now there is nothing in place and I was thinking on the lines that nothing less than $25.00 should go to collections and anything less than $25.00 would go to bad debt. Everything under $2.50 would be a small balance adjustment.


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## Chelle-Lynn (Feb 6, 2017)

We are a Family Practice/Specialty provider office so we are set a little differently.  

   - Small balance is anything $4.99 and under
   - Commonly for physician offices the collection threshold is $19.99 as co-pay are generally $20.00 and you would not want to write off co-pays that were not collected at the time of service.

Generally each office sets their guidelines based on common co-pay amounts and they weigh in the cost of assigning accounts to collections and the cost of going after a certain balance amount.  So it comes down to cost of collections vs. the amount being collected.


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## micki127 (Feb 6, 2017)

Thank you for your input and you are so correct in what you stated. Definitely do not want to write off co-pays 

Have a wonderful day!


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