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Chapter 20
Medical Office Procedure 2
| Question | Answer |
|---|---|
| Another name for a patient bill | Statement |
| Patient account that receives periodic charges | Open-Book Account |
| Document that tracks accounts by the date of last payment | Age Analysis |
| Patient billing where accounts are split in groups with staggered statement mailing dates | Cycle Billing |
| Money owed to other businesses by the practice | Accounts Payable (A/P) |
| Document signed by the patient and practice representative when a payment agreement is met, consisting of four or more payment | Truth in Lending |
| Company that tracks individuals credit histories | Credit Bureau |
| Account where services to be performed are written out and the document is signed by the person performing the service and the person receiving the services | Written-Contract Account |
| Account consisting of only one charge or one date of service | Single -Entry Account |
| Money or funds that are owed to the practice for services provided | Accounts Receivable (A/R) |
| person who is responsible for a patient's debt | Guarantor |
| the balance resulting from an overpayment on a patient's account | Credit Balance |
| allowing a patient to pay for services at a time other than the time of service | Credit |
| financial instrument of guaranteed payment, which may be purchased from a bank, a post office, or some convenience stores | Money Order |
| a person who receives a check in payment | Payee |
| the legal right to act as the attorney or agent of another person, including handling that person's financial matters | Power of Attorney |
| the process of logging charges and receipts in a chronological list in the daily log | Journalizing |
| a monthly comparison of the office financial records with bank records to ensure that they are consistent and accurate | Reconciliation |
| document or instrument that is legally transferable from one person to another | Negotiable |
| a check made out to one recipient and given in payment to another, for instance, an insurance check made out to a patient, which is then signed over to the medical practice | Third-Party Check |
| the systematic recording of business transactions | Bookkeeping |
| a person who pays a bill or writes a check | Payer |
| a business check with an attached stub, which is kept as a receipt | Voucher Check |
| the signing or stamping of the back of a check with the proper identification of the person or organization to whom the check is written, to prevent the check from being cashed if it is stolen or lost | Endorsement |
| a check purchased in a bank and signed by a bank representative, usually purchased for a large purchases requiring guaranteed payment or by those without personal checking accounts | Certified Check |
| a superbill | Include the charges for services rendered on that day |
| a practice may buy accounts receivable insurance to protect the practice from | Lost income because of nonpayment |
| the Fair Debt Collection Practices Act of 1977 | Governs the methods that can be used to collect unpaid debts |
| free treatment for hardship cases should be | At the provider's discretion |
| which of the following is an acceptable form of payment in many medical practices? | Insurance Debit Card Check Credit Card |
| a hardship case is defined as a person who is | Poor Underinsured Uninsured |
| the purpose of an age analysis it to | Determine which accounts to turn over to collections determine how much money is owed to the practice and how long it has been outstanding classify and review past-due accounts determine how much money is owed to the practice and which accounts to turn ov |
| most practices begin the collection process with | Telephone calls, letters or statements. |
| the patient's first bill, or "statement," occurs | At the time of service with receipt of the superbill |
| when sending a statement for the care of a minor, the statement should be addressed to | The Guarantor |
| an example of an accounts payable item is | The monthly lease, employee salary, and an insurance premium are all examples |
| if a patient's check does not clear due to nonsufficient funds (NSF), the practice should | Adjust the account accordingly, adding the amount back to the account. |
| when a check for payment from a patient is received some time after the patient's visit, the medical assistant should | Record it on the patient's ledger card and day sheet on the day received |
| the ABA number on a check appears | as a fraction in the top-right side of the check |
| a third-party check | May be accepted if it is from the patient's health insurance company |
| medical practices prefer electronic banking because | It improves productivity, cash flow, and accuracy |
| what is the reconciled ending balance for a checking account with a balance of $1,800.00 on the month-end statement from the bank, with $3,200.00 deposited during the month, which is not yet showing, and $600.00 in outstanding checks that have not yet pos | $4,400.00 |
| a patient's beginning account balance is $30.00. the charge for medical services today is $40.00. a payment is made on the account today in the amount of $50.00. what is the current balance due on this account? | $20.00 |
| when an insurance company makes a payment to a medical practice for services for services rendered to a patient and the patient makes a payment on the account, causing it to exceed the allowed charges, it is called | Overpayment |
| sequentially, the first step in reconciling a bank account is to | Check the closing balance on the previous bank statement balance on the new bank statement |
| a best practice for depositing checks is to | Deposit checks on a daily basis in person at the bank |
| which of the following features is not available with all medical office electronic banking software programs? | Manage Payroll |
| a patient's ledger card would not include the | Physician's DEA number |
| which of the following conditions should be met in order for a check to be negotiable? | The check must be written and signed by the payer the check must be payable to the payee the check must be include the amount of money to be paid the check must have the name of the bank on the check |
| which formula would be used to balance a day sheet or a patient's ledger? | Previous Balance + Today's Charges - (Payments - Adjustments) = Current Balance |
| the purpose of the daily log is to | Provide a record of each patient seen payment that have been received |
| in which of the following denominations are traveler's checks printed? | $10, $20, $50, $100 |
| if you make an error when writing a check, you should | Write VOID in ink across the front of the check and file it in numeric order with the returned checks |
| which of the following checks could be used by the physician if she forgot her checkbook and wished to make a withdrawal from her account? | Counter Check |
| which item of a check identifies the bank from which the check originated? | The ABA number and MICR numbers |
| an accounts payable record shows the amounts the practice owes to _____ | Vendors |
| _____ shows how much cash is available to cover expenses, invest, or take as profits | Cash Flow Statement |
| whereas assets are goods or properties that are part of the worth of a practice, liabilities are amounts owed by the practice on a(n) _____ | Creditors/Assets |
| a person who receives a check is known as a(n) _____ | Payee |
| in the daily log you enter the name of each patient seen that day. across from the name, you record the _____ provided, the fee _____, and the _____ received. | Services Charged Payment |
| to prevent theft of checks, always put the checkbook in a(n) _____ place when it is not in use and file deposit receipts promptly. if they are lost, you have no _____ of the deposit | Securely Locked Record/Proof |
| everyday, you must update the accounts receivable record, which shows the total _____ to the practice | Owed |
| a check that is ____ is legally transferable from one person to another | Negotiable |
| a practitioner is likely to have three different types of checking accounts: a(n) _____ account, a(n) _____ account for office expenses, and a(n) _____ earning account. | Personal Business Interest |
| the _____ endorsement is the safest type of endorsement to use because it will allow the check to be deposited only in a specified account | Restrictive |
| describe what cycle billing means and give an example | Accounts are divided into groups alphabetically and sent out at different dates. Example being sending statements for the last name A-N on the 1st and N-Z on the 15th |
| explain the assumption that should be made when a divorced parent brings a child in for treatment (if legal documentation of payment arrangements has not been provided to the office.) | The parent brining the child in for treatment is responsible for the payment (considered the guarantor) |
| in an open-book account, does the time limit for collection begin when the account is initiated? why or why not? | Yes, because an open-book account uses the date of the last charge for each illness as the start date to determine the time limit for that specific debt |
| what "tone" should be used when making initial phone calls about the patient's overdue account. Why? | Friendly and sympathetic you should assume the patient simply forgot |
| why is it important that collection proceedings not be threatened unless the proceedings will take place on the date given to the patient? | By law, you cannot threaten to send an account to a collection agency unless it will actually be sent that cutoff date |
| list the three main types or groups of accounts payable and give one example of an accounts payable item for each group | Payments for supplies, equipment and practice: related products and services payroll, employee checks (maybe the largest amount payable) taxes owed to federal, state and local governments and agencies |
| why is it advantageous to make frequent bank deposits? | To reduce theft, loss, bounced checks and inaccurate recordings |
| explain why it is important to reconcile the monthly bank statement with your checkbook balance | To ensure that they are consistent with each other and accurate |
Created by:
Tagcal