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Business Practice
Chapters 13, 14, 15
| Term | Definition |
|---|---|
| garnishment | legal proceeding in which money and property are attached so they can be used to pay a debt - limited to 25% |
| credit | "to trust" in an individual's integrity to meet financial oblications |
| open accounts | open to charges made from time to time. record of business transactions on the books that represents an unsecured A/R where credit has been extended without a formal written contract |
| dun | message to remind pt about delinquent payment |
| skip | debtor who moves and does not leave a forwarding address |
| aging account | analysis of A/R showing 30, 60, 90, and 120 days delinquency |
| fee schedule | list of the physician's procedures, services and fees |
| a medical practice may have separate fee schedules for what types of programs | workers comp, managed care contracts, medicare, private pay/self-pay pts. |
| names used for the form that serves as a combination bill, insurance form and routing document | charge slip, multipurpose billing form, communicator, encounter form, fee ticket, pt service slip, routing form, super bill, transaction slip |
| if a pt is called about a delinquent bill at 10pm what federal law is being violated | FDCPA - fair debt collection practices act |
| name two types of bankruptcy | Chapter 7 - straight petition Chapter 13 - wage garnishment - 5 years - 10-20% of wages |
| debit | withdrawal or subtraction from a bank account |
| payee | person named on a check as the recipient of the amount shown - aka bearer |
| voucher | a check stub |
| ABA number | routing, bank or transit number |
| payer | person signing a check to pay out funds from checking account - aka drawer |
| credit | deposit or addition to a bank account |
| most common types of checking accounts | individual or joint and business or commercial |
| what is ABA used for | checks go to the Federal Reserve Bank location |
| 21st Century Act | aka check 21 - the federal act that allows the use of electronic checks which are created from a digital image - reproductions are called substitute checks |
| restricted endorsement | "for deposit only" w/signature - most common for medical office |
| blank endorsement | signature only |
| full or special endorsement | "pay to the order of ..." can be deposited into any account |
| debit | bookkeeping entry that records increases in assets and expenses and decreases liabilities |
| post | to record a charge, payment or adjustment on a ledger |
| AR ledger | record of all pts' outstanding accounts showing how much each one owes for services rendered |
| asset | anything owned by the business (cash, inventory, furniture) |
| liability | monies that are owed for business expenditures - AP |
| daysheet or general ledger | register for recording all daily business transactions of pts - services rendered, fees charged, payments made, adjustments |
| credit | bookkeeping entry that decreases assets and increases earnings |
| proprietorship | owner's net worth |
| AP ledger | register or checkbook that lists amounts paid out for expenses of the business practice |
| quantum merit | as much as he deserves |
| latin term for credit | credere |
| what do you do for a transpostional error | divide by nine |
| petty cash or basic register | for minor office expenses $50-$200 |
| red flag rule | prevents ID theft - use 2 pt identifiers |
| fee schedules are based on what | what the average physician in the same specialty receives, the specialty practiced, doctor's experience, location of practice |
| registration information of pt | name, contact info, DOB, insurance |
| concierge fees | retainer based medicine - cash based business - charge annual fee for service |
| medicare participating fee | amount paid to the physician who have contracts |
| medicare non participating fee | amount paid to physicians who do not have contracts |
| medicare limiting charge | highest amount a non-participating physician can charge a Medicare pt |
| hardship discounts | granted on income level |
| charges | fee for professional services rendered |
| Hill-Burton Act | enacted in 1946 - provided federal dollars for communities to build hospitals around the countries. hospital ineligible for state aid |
| fee for service | set dollar amounts for professional services |
| guideline for communicating fees | medical service should be stated clearly and accurately |
| signs of a deadbeat | record of doctor hopping, no referral from PCP, motel address (if you are unable to locate pt who owes a balance contact collection agency immediately) |
| not insured | self pay |
| ledger card | pt record showing charges, payments, adjustments and balance owed and is created for each pt when they first receive medical services - for PATIENT - not the same as general ledger |
| cycle billing | method where certain portions of AR are billed at specific times during the month on basis of alphabetical breakdown, account number, insurance type or date of first service |
| another name for debit card | check card |
| offline | credit card - does not require PIN |
| online | debit card - requires PIN |
| individual responsibility program | concierge medicine - program where physicians accept all pts but refuse to accept reimbursement from any third party, private or govt programs |
| fair debt collection practices act | FDCPA - debtors may only be contacted once a day and never on a Sunday or day of Sabbath, calls placed after 8am and before 9pm, |
| equal credit opportunity act | ECOA - physicians agrees to extend credit to one pt, the same arrangement must be extended to all pts. Not all pts approved - need to be told buy dr. Pt has 60 days to request a reason of denial in writing |
| federal truth in lending act | governs anyone who charges interest or agrees to more then four payments for a given service - do not have to disclose if charging interest on payment plan - Regulation Z |
| truth in lending consumer credit cost disclosure | similar to federal truth and lending but have to disclose all costs |
| regulation Z | requires that disclosure form be completed and signed when payment plan is instituted (part of federal truth in lending act) |
| fair credit billing act | pts have 60 days from date of statement to complain about an error |
| fair credit reporting act | FCRA - consumer reporting agencies gather and assemble information on private individuals to evaluate and determine credit standing and capacity. CRAs sell consumer reports that detail the information for future creditors, employers, etc. |
| credit bureaus | two branches: first branch consists of companies that issue non-investigative reports, second branch consists of companies that issue consumer investigative reports (major credit cards) |
| good collection rate | 30-60% |
| three types of collection accounts | open-book, written contract, single entry |
| open book collection account | aka open accounts - represents an unsecured AR where credit has been extended without a formal written contract |
| written contract collection account | agreement to pay (=regulation z) the bill in more than four installments under the truth in lending provisions |
| single entry collections account | account with only one charge listed - usually for a small amt |
| fee splitting | illegal practice where dr offers to pay another dr for referrals |
| Bankruptcy | legally unable to pay one's debt |
| Chapter 7 bankruptcy | straight petition - wipes out all non-secure debts |
| Chapter 13 bankruptcy | wage garnishment - have 5 years to pay off otherwise take 10-20% of wages |
| Chapter 11 bankruptcy | for businesses |
| secured items | mortgage, car payments |
| non-secured items | credit cards |
| most common types of banking accounts | checking and saving |
| electronic funds transfer system | EFTS - preauthorized transfers are made electronically from one account to another |
| pay by phone | substitute for a check writing - MA calls bank and says "I would like a transfer of funds" |
| automatic bill pay | bank is given permission by the account holder to transfer funds |
| POS banking system | point of service - instant transfer of funds from a pt's bank account |
| bank's fractional number | number at the top right of a check that is a combination of a routing number and account or check number |
| drawer | aka payer/maker - pays the $$ |
| drawee | financial institution the money is coming from |
| payee | aka bearer - receives the $$ |
| cashier's check | drawn by the bank - no stop payments allowed |
| stale check | when time limit on the check has passed |
| limited check | statment indicates that check is void if written over a certain amount or date |
| money order | purchased at post office, 7/11, supermarket - purchased at face value plus a fee (secured check) |
| travelers checks | used for travel - incriments of $10, $20, $50, $100 |
| warrant check | not considered until it is converted into negotiable instrument - does not have an ABA or routing number - mainly used for insurance co. |
| intent to defraud | check written with knowledge that not enough money in account to cover it |
| when are businesses more vulnerable to fraud | Friday afternoons, evenings, weekends, holidays |
| how do you endorse a check | signature must be exactly as payee's name on front - if incorrectly written should be endorsed twice with incorrect spelling then corrected spelling |
| non-sufficient funds | NSF - payer doesn't have enough money in account to cover check - check will be "bounced" by bank and fee to payer will incurr |
| accounting | system of recording and summarizing business and financial transactions and analyzing, verifying and reporting results |
| difference between accountants and bookkeepers | accountants do the math, bookkeepers just record |
| single entry accounting | easy to learn and accepted by federal and state - hand written - used for general ledger |
| other names for general ledger | journal, day sheet, daily log, day book, charge journal |
| double entry accounting | manual and electronic - exact science b/c must balance before it allows you to move forward |
| capital | original investment money and other property |
| pegboard accounting | most popular bookkeeping method used for decades - accurate and easy to learn and provides foundation in bookkeeping - entirely manual |
| computerized accounting | expedites posting, incorporates billing capacity, reduces paper but expensive |
| where are transactions posted in computerized bookkeeping system | to pt's account |
| where are transactions posted in a manual bookkeeping system | pt's ledger card |
| when are charges posted | date of service - charges are debited to the account |
| when are payments posted | date received - payments and adjustments are credited to account |
| how to reconcile cash and change drawer | cash rec'd should equal cash amount on deposit slip, remaining amount in drawer should be same as what you started with |
| what are required forms for pegboard bookkeeping system | ledgers/day sheets, transaction slip, pt's financial record, deposit slip |
| Other names for general ledger | Daysheet, daily log, daybook, charge journal |
Created by:
gcjlentz
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