| Question | Answer |
| What does ADRR stand for and explain. | Average days of Revenue in Accounts Receivable
AKA A/R Days outstanding
to calculate:
A/R at a specific time DIVIDED BY average daily revenue = ADRR |
| Define Charity Care | Svc provided, never expect it to result in cash flow. |
| Define Indigent | A person who has no means of paying for treatment/svcs and not eligible for MA. |
| Define Bad Debt | An uncollectable account, resulting from extension of credit. |
| What should a written collection policy include besides minimun acceptable payments and the follow up policy, including title/role of f/u rep? | public relations policy
charity care requirements
disc policy
practice of charging interest
Contract amt implications
Age when acct is considered uncollectible
determination/verification of responsible party
process for handling errors/complaints |
| Chapter 7 Bankruptcy | The individual or business cannot pay debts based on their income. Except for exempt property as defined by law, assets are auctioned off to pay debts. |
| Chapter 11 Bankruptcy | "Reorganization Bankruptcy". Gives a reprieve from creditor claims while make payments and try to get caught up. |
| Involuntary Bankruptcy | If debtor has 12 or more creditors, 3 of which have claims in excess of $5K each - or at least 1 creditor with more than $10,775, can request involuntary BK. |
| Chapter 12 Bankruptcy | For farmers, "only a family farmer with regular annual income may file" |
| Chapter 13 Bankruptcy | Prohibits creditors from collecting for 3 years, allowing the person to pay in full or installments for that period of time. |
| What steps do we take if we are notified of a patient with a bankruptcy and the hospital debt IS included on the petition? | Flag pt acct including chapter, court jurisdiction, legal counsel & phone number.
Suspend all collection activity pending final disposition
Notify any 3rd party collectors and forward notice to them
Notify all parties if pmts are rec'd on the acct |
| What do we need to do if we are notified a patient is deceased? | Check if a legitimate estate exist and file appropriate caveat to the estate
Check the register of wills for an estate
change the mailing address to "The Estate of_________"
If no estate or responsible party, write off self pay after ins pays |
| What does GAAP stand for and define: | Generally Accepted Accounting Principles
-common set of principles, rules & standards a co must follow when compiling financial stmts. |
| What are the generally accepted accounting principles? | endorse checks immed w/ FOR DEPOSIT ONLY
Issue receipts for all cash pmts
Separate cash per cashier
Store deposits in a fireproof safe
keep a dupe number rcpt log
have a designated locked cash drawer
keep a pmt log
segregate duties
don't share pw |
| What does ADR stand for and how do you get this info? | Average Daily Revenue:
Total revenue or charges for the period DIVIDED BY number of days in said period = ADR |
