Practice Management Alert

Question: A patient called me yesterday about being sent to collections even though she had been making monthly payments. The justification was that she was making $20 monthly payments instead of $50 payments as instructed by the A/R representative handling her case. I thought by law a person could not be sent to a collection agency if she is making payments or at least attempting to make good on her balances. Could you please help me out with this?

Florida Subscriber Answer: Both federal and state laws dictate collection practices, and state laws have various restrictions on placing an account in collections, says attorney Wayne J. Miller with Compliance Law Group in Los Angeles. "Normally a patient making payments would not be placed in collections, but in this case it appears the patient may not be fully complying with the terms of a payment plan," Miller says.

You should advise your A/R representative to contact the patient to negotiate a more feasible payment plan with lower monthly payments. The A/R representative and the patient should also demand that collection efforts stop.