Practice Management Alert

If youre in the process of creating your offices financial policies and procedures from scratch  or even revising an old set chances are youre feeling a little overwhelmed.
 
Fret no more. Take a look at these guidelines, provided courtesy of Physicians Practice Inc. in Atlanta. This document lays out exactly what areas your policy should cover, and how to deliver your document to patients. It has been reproduced with the permission of Elizabeth Woodcock, director of knowledge management at PPI:

1. Why your policy is now in writing.

2. Why you need to update personal information files on each patient every year.

3. Initial office visit or upon admission  What payment is required.

4. Allowable forms of payment: cash, check, money order, and charge card.

5. Broken appointment charge and policy. (For example, no-shows.)

6. Patient is responsible for total charge. We do not look to a third party for payment.

7. Medicare/Medicaid, what policy? Established patients only?

8. Office policy on insurance assignment. Full fee due now or just estimated deductible? Whether or not service fee is charged for filling out more than one insurance form and, if so, how much. If doctor participates, how are those programs handled differently?

9. Maximum number of payments allowed? Promissory notes or Truth in Lending forms?

10. Interest, billing or service charge  rate and when applied?

11. Lab fee billed at time of drawing?

12. Specialists/consultants  if required, will you bill the patient directly?

13. We welcome the opportunity to discuss any aspect of our financial policy.  Who is in charge of this? When will the doctor override the billing persons decision?

14. Charge for insufficient funds check? How much and how is it administered?

The financial policy should advise the patient that the balance is due in full if the patient has no insurance coverage and should include a statement that extended payments should be discussed with the business office. Do not put a payment plan outline in your financial policy. Many patients may choose it over payment at the time of service, since you offered it. Some offices require payments that are at least 10 percent of the initial balance; other practices require that all balances be paid within six months, and determine repayment by dividing the balance by the appropriate number of months. If you agree to a payment plan, advise the patient that you have a note he/she may sign. If your practice decides to utilize this tool, advise the patient that he/she must sign this note and if the note is interest bearing, you are required to inform the patient of the interest rate and total dollar amount of the interest.
 
Once the patient has read the financial policy, ask him/her if he/she has any questions. If there are any, answer them to clear up any misunderstanding. If there are no questions, verbally reinforce the patients responsibility to clear the balance in full.
 
Note: Be sure that the note you use, or your attorney may design, conforms to Regulation Z, the Truth in Lending Act. It is recommended that you check with your accountant on any note or installment agreement forms used.