Question 1

bad debt

Accepted Answer

An account deemed uncollectible.

Question 2

bankruptcy

Accepted Answer

Legal declaration that a person is unable to pay his or her debts.

Question 3

collection agency

Accepted Answer

Outside firm hired by a practice or facility to collect overdue accounts from patients.

Question 4

collection ratio

Accepted Answer

The average number of days it takes a practice to convert its accounts receivable into cash.

Question 5

collections

Accepted Answer

The process of following up on overdue accounts.

Question 6

collections specialist

Accepted Answer

Administrative staff member with training in proper collections techniques.

Question 7

credit bureaus

Accepted Answer

Organizations that supply information about consumers’ credit history and relative standing.

Question 8

credit reporting

Accepted Answer

Analyzing a person’s credit standing during the collections process.

Question 9

cycle billing

Accepted Answer

Type of billing in which patients with current balances are divided into groups to equalize statement printing and mailing throughout a month, rather than mailing all statements once a month.

Question 10

day sheet

Accepted Answer

In a medical office, a report that summarizes the business day’s charges and payments, drawn from all the patient ledgers for the day.

Question 11

embezzlement

Accepted Answer

Theft of funds by an employee or contractor.

Question 12

Equal Credit Opportunity Act (ECOA)

Accepted Answer

Law that prohibits credit discrimination on the basis of race, color, religion, national origin, sex, marital status, age, or because a person receives public assistance.

Question 13

Fair and Accurate Credit Transaction Act (FACTA)

Accepted Answer

Law designed to modify the Fair Credit Reporting Act to protect the accuracy and privacy of credit reports.

Question 14

Fair Credit Reporting Act (FCRA)

Accepted Answer

Law requiring consumer reporting agencies to have reasonable and fair procedures to protect both consumers and business users of the reports.

Question 15

Fair Debt Collection Practices Act (FDCPA) of 1977

Accepted Answer

Laws regulating collection practices.

Question 16

guarantor billing

Accepted Answer

Billing system that groups patient bills under the insurance policyholder; the guarantor receives statements for all patients covered under the policy.

Question 17

means test

Accepted Answer

Process of fairly determining a patient’s ability to pay.

Question 18

nonsufficient fund (NSF) check

Accepted Answer

A check that is not honored by the bank because the account lacks funds to cover it; also called a “bounced,” “returned,” or “bad” check.

Question 19

patient aging report

Accepted Answer

A report grouping unpaid patients’ bills by the length of time that they remain due, such as 30, 60, 90, or 120 days.

Question 20

patient refunds

Accepted Answer

Monies that are owed to patients.

Question 21

patient statement

Accepted Answer

A report that shows the services provided to a patient, total payments made, total charges, adjustments, and balance due.

Question 22

payment plan

Accepted Answer

Patient’s agreement to pay medical bills over time according to an established schedule.

Question 23

prepayment plan

Accepted Answer

Payment arrangement made before medical services are provided

Question 24

Regulation F

Accepted Answer

A rule that clarifies debt collection practices created by the FDCPA.

Question 25

retention schedule

Accepted Answer

A practice policy that governs which information from patients’ medical records is to be stored, for how long it is to be retained, and the storage medium to be used.

Question 26

skip trace

Accepted Answer

The process of locating a patient who has not paid on an outstanding balance.

Question 27

Telephone Consumer Protection Act of 1991

Accepted Answer

Federal law that regulates consumer collections to ensure fair and ethical treatment of debtors; governs calling hours and methods.

Question 28

Truth in Lending Act

Accepted Answer

Federal law requiring disclosure of finance charges and late fees for payment plans.

Question 29

uncollectible accounts

Accepted Answer

Monies that cannot be collected from the practice’s payers or patients and must be written off.

MED112 CODE/BILL

MED112 KEY TERMS CH 14

Term	Definition
MED112 CH 14 KY TERMS
bad debt	An account deemed uncollectible.
bankruptcy	Legal declaration that a person is unable to pay his or her debts.
collection agency	Outside firm hired by a practice or facility to collect overdue accounts from patients.
collection ratio	The average number of days it takes a practice to convert its accounts receivable into cash.
collections	The process of following up on overdue accounts.
collections specialist	Administrative staff member with training in proper collections techniques.
credit bureaus	Organizations that supply information about consumers’ credit history and relative standing.
credit reporting	Analyzing a person’s credit standing during the collections process.
cycle billing	Type of billing in which patients with current balances are divided into groups to equalize statement printing and mailing throughout a month, rather than mailing all statements once a month.
day sheet	In a medical office, a report that summarizes the business day’s charges and payments, drawn from all the patient ledgers for the day.
embezzlement	Theft of funds by an employee or contractor.
Equal Credit Opportunity Act (ECOA)	Law that prohibits credit discrimination on the basis of race, color, religion, national origin, sex, marital status, age, or because a person receives public assistance.
Fair and Accurate Credit Transaction Act (FACTA)	Law designed to modify the Fair Credit Reporting Act to protect the accuracy and privacy of credit reports.
Fair Credit Reporting Act (FCRA)	Law requiring consumer reporting agencies to have reasonable and fair procedures to protect both consumers and business users of the reports.
Fair Debt Collection Practices Act (FDCPA) of 1977	Laws regulating collection practices.
guarantor billing	Billing system that groups patient bills under the insurance policyholder; the guarantor receives statements for all patients covered under the policy.
means test	Process of fairly determining a patient’s ability to pay.
nonsufficient fund (NSF) check	A check that is not honored by the bank because the account lacks funds to cover it; also called a “bounced,” “returned,” or “bad” check.
patient aging report	A report grouping unpaid patients’ bills by the length of time that they remain due, such as 30, 60, 90, or 120 days.
patient refunds	Monies that are owed to patients.
patient statement	A report that shows the services provided to a patient, total payments made, total charges, adjustments, and balance due.
payment plan	Patient’s agreement to pay medical bills over time according to an established schedule.
prepayment plan	Payment arrangement made before medical services are provided
Regulation F	A rule that clarifies debt collection practices created by the FDCPA.
retention schedule	A practice policy that governs which information from patients’ medical records is to be stored, for how long it is to be retained, and the storage medium to be used.
skip trace	The process of locating a patient who has not paid on an outstanding balance.
Telephone Consumer Protection Act of 1991	Federal law that regulates consumer collections to ensure fair and ethical treatment of debtors; governs calling hours and methods.
Truth in Lending Act	Federal law requiring disclosure of finance charges and late fees for payment plans.
uncollectible accounts	Monies that cannot be collected from the practice’s payers or patients and must be written off.

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