Pulmonology Coding Alert

Question: At my last practice, we used to write off patient balances whenever they were under $25.00. At my new pulmonology practice, there is no policy on write-offs - they do them on a case-by-case basis. They've asked me to explore some new options for this process. Can you advise?

Codify Subscriber

Answer: In some cases, practices may find that they have patient balances sitting around for months without collecting payment on them. When this happens, you have a few options, one of which is to write off the balance. But knowing when that's the right move can be tricky.

Because of the myriad issues involved in this situation, practices should have a universal protocol so they always follow the same rules for every patient. Writing off balances should be a last resort, but every office has a different policy on this, depending on the size and the relationship with patients -- but you have to have some policy. Follow your guidelines with every single person.

Some questions you may want to ask yourself when considering a write-off policy include whether the patient balance is less than the cost of printing and mailing a statement, whether your collections firm takes a cut, if the collection agency has a minimum referred balance, whether the balance is definitely uncollectable, and if the patient is indigent or a hardship case. In addition, investigate whether writing off balances that have been processed to patient responsibility violates any payer contracts.

Once you consider all of these questions, speak with your practice partners and administrators to forge the policy, which you should then follow for all of your patients.