Practice Management Alert
Deceased Patient
Question: Our collection agency told us that if a patient is dead and there is no signed ABN/financial agreement that the debt should be written off. Is this correct? Tennessee Subscriber Answer: The estates executor is responsible for ensuring that all debts against the estate are paid. However, in many states when a patient dies, anyone who is owed anything by the deceased can file a claim against the estate only within a certain time limit. For example, in Florida, it is 90 days, but this varies. Find out what the law is in your state by contacting a trust and estates attorney in your area. Once the time limit is up, you cannot file anything against the estate and you must write off the bad debt. Some carriers may pursue relatives, but it is unlikely they will pay because it is not their debt.
Practice Management Alert
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