With what seems like a continuous decline in physician reimbursement, it is imperative that all practices collect every dollar they are entitled to. However we all know this is not always the case. As such, mechanisms and systems need to be in place to avoid bad debt situations as much as possible. The following is a bad debt control checklist you can use to assess whether or not a medical practice is prepared to minimize its bad debts. Any “no” answers should be investigated immediately, with recommended solutions following soon thereafter.
Do written guidelines exist on the collection of self-pay accounts? ___ yes ___ no
Are collection guidelines reviewed and revised periodically? ___ yes ___ no
Are collection guidelines clear, concise and sufficiently detailed to serve as a working reference to personnel? ___ yes ___ no
Do business office personnel receive formal training on collection guidelines before beginning work?
___ yes ___ no
Do employees receive formal training on collection guidelines after any revision, or otherwise at least annually? ___ yes ___ no
Does management solicit employee suggestions for changes in policies and procedures?
___ yes ___ no
Do exceptions to approved guidelines require the approval of management on a case-by-case basis?
___ yes ___ no
Do self-pay guidelines allow monthly payments on certain accounts?___ yes ___ no
Do self-pay guidelines specify the maximum number of payments that will be accepted?
___ yes ___ no
If so, how many? _______________________
Do self-pay guidelines specify the minimum monthly payment amount that will be accepted?
___ yes ___ no
If so, how much? ________________________
Do collection guidelines specify what action should be taken if a patient misses a payment?
___ yes ___ no
Does management support the collection guidelines, even when a patient complains?
___ yes ___ no
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