Wiki Patient Balances and write offs

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abhobson@yahoo.com

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Can anyone give me insight on how your practice handles past due balances? Our current policy is 90 days then collections, but what if the balance is never paid to the collection agency? When do you adjust the balance off or do you leave it on their accounts with your office?


Thank you,
Ashley
 
The office where I used to handle this would write off the balance as soon as the account was sent to collections. We had a special 'collections write-off' code that we posted so that we could track the amounts sent to collections each month, and it would also remove the balances from the accounts receivable since our office was no longer pursuing the payment. If the patient made a payment to the collections agency at a later date, we'd then reverse the write-off and post the payment.
 
thomas7331 said:
The office where I used to handle this would write off the balance as soon as the account was sent to collections. We had a special 'collections write-off' code that we posted so that we could track the amounts sent to collections each month, and it would also remove the balances from the accounts receivable since our office was no longer pursuing the payment. If the patient made a payment to the collections agency at a later date, we'd then reverse the write-off and post the payment.
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Did you ever pull accounts back from collections or completely adjust the balance after a number of years? Right now, once it is turned over with collections the account stays with them until paid, but if the patient call to make an appointment we require them to pay their balance with collections before we schedule a new appointment. no matter how old it is.
 
abhobson@yahoo.com said:
Did you ever pull accounts back from collections or completely adjust the balance after a number of years? Right now, once it is turned over with collections the account stays with them until paid, but if the patient call to make an appointment we require them to pay their balance with collections before we schedule a new appointment. no matter how old it is.
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We would only pull an account out of collections if it was found that it was sent in error. Once sent to collections, it was adjusted off at that time because we didn't want it to artificially inflate the aged A/R. In my experience, probably more than 80% of the amounts that were sent to collections were never paid.

As I recall, we also had the policy you describe that the patient had to pay their balance in order to be scheduled again. It didn't change the way that we handled the write-offs though. Once the balance was confirmed as paid, we would unlock the account and enable the patient to be schedule again. You have to be a little careful with how you handle that though, because in some situations your practice may be required to transition the patient's care or follow a certain process for discharging the patient from your practice if they are currently under treatment for a condition.
 
We do the same process as Thomas with an additional step, we terminate/discharge patients from our practice that get referred to the collection agency. This was the advice of our malpractice carrier.
 
You still have to discharge them from care (send notice) regardless of New or Established. If you are going to start this process it's also recommended to update clinic policies to reflect. You may want to reach out to your malpractice carrier prior to implementing. The letters you send to the patient have to have specific documentation and you have to send a copy via regular mail and certified mail.
 
rthomas@impcna.com said:
You still have to discharge them from care (send notice) regardless of New or Established. If you are going to start this process it's also recommended to update clinic policies to reflect. You may want to reach out to your malpractice carrier prior to implementing. The letters you send to the patient have to have specific documentation and you have to send a copy via regular mail and certified mail.
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I disagree with the underlined part, but I would agree that contacting your malpractice carrier for guidance is a good idea.
 
SharonCollachi said:
I disagree with the underlined part, but I would agree that contacting your malpractice carrier for guidance is a good idea.
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I should have worded that differently. Depending onw which state you live in depends on the requirements of sending letter both regular and certified. I am in Mississippi and it is required to send letter both ways.
 
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