Advanced Search

Practice Management Alert

Reader Questions:

Day-of-Service Discounts Must Be Compliant

Published on Sun Nov 14, 2004

Question: Is it OK if we have a set exam fee and then offer a 15 percent discount to patients if they decide to pay in full on the day of service?

Florida Subscriber Answer: Yes, as long as you clearly explain the terms of the discount in your financial policy and apply the discount consistently to all your patients - you must do these two things to be compliant. In fact, many practices choose to offer a discount to patients who pay in full on the day of service or who pay their balance in full when they receive their first statement.   
 
And many practices offer a discount to patients with financial need.
 
All of these discount policies are perfectly legal and acceptable as long as you define the details in your financial policy and abide by those policy guidelines no matter what. Inconsistent application of discounts can land you in hot water with the feds and with insurance carriers that may accuse you of unfair billing practices.
You’ve reached your limit of free articles. Already a subscriber? Log in.
Not a subscriber? Subscribe today to continue reading this article. Plus, you’ll get:
  • Simple explanations of current healthcare regulations and payer programs
  • Real-world reporting scenarios solved by our expert coders
  • Industry news, such as MAC and RAC activities, the OIG Work Plan, and CERT reports
  • Instant access to every article ever published in Revenue Cycle Insider
  • 6 annual AAPC-approved CEUs
  • The latest updates for CPT®, ICD-10-CM, HCPCS Level II, NCCI edits, modifiers, compliance, technology, practice management, and more

Other Articles in this issue of

Practice Management Alert

View All