IHMO CH. 10 Multiple Choice

Cash flow is the
ongoing availability of cash i the medical practice
When insurance carriers do not pay claims i a timely manner, what effect does this have on the medical practice?
decreased cash flow
What does the insurance billing specialist need to monitor to be able to evaluate the effectiveness of the collection process
Accounts receivable
The average amount of accounts receivable should be ….. times the charges for one month of services
1.5 to 2
Accounts that are 90 days or older should not exceed ….. of the total accounts receivable
15% TO 18%
What should be done to inform a new patient of office fees and payment policies
Send a patient information brochure, send a confirmation letter, and discuss fees and policies at the time of the initial contact (all)
The patient is likely to be the most cooperative in furnishing details necessary for a complete registration process
before any services are provided
The reason for a fee reduction must be documented in the patients
medical record
Professional courtesy means
making no charge to anyone, patient or insurance company, for medical care.
When collecting fees, your goal should always be to
collect the full amount
A medical practice has a policy of billing only for charges in excess of $50. When the medical assistant requests a $45 payment for the office visit, the patient states, just bill me. How should the medical assistant respond?
State the office policy and ask for the full fee
The most common method of payment in the medical office is
personal check
When the physicians office receives notice that a check was not honored, the first thing to do is to
call the bank or the patient
Accounts receivable are usually aged in time periods of
30, 60, 90 and 120 days
Messages included on statements to promote payment are called
dun messages
What is the type of billing system in which practice management software is used
Computer billing
Employment of a billing service is called
outsourcing
The first statement should be…..of service
presented at the time
The first telephone call to the patient to try to collect on an account should be made
after there is no response from the third statement
What is a card called that permits bank customers to make cashless purchases from funds on deposit without incurring revolving finance charges for credit?
debit card
How many installments (excluding a down payment) must a payment plan have to require full written disclosure
four or more
Patient accounts that are 90 days or older should not exceed what percent of the total office accounts receivable
15% to !8%
What is the name of federal act that prohibits discrimination in all areas of granting credit
Equal Credit Opportunity Act
What is the name of the act designed to address the collection practices of third party debt collectors and attorneys who regularly collect debts for others
Fair Debt Collection Practices Act
All collection calls should be placed after ….. am and before …..pm
8; 9
Which group of accounts would a collector target when he or she begins making telephone calls
60-90 day accounts
In making collection telephone calls to a group of accounts, how should the accounts be organized to determine where to begin
Organize the accounts according to amounts owed and start with the largest
A plan in which employees can choose their own working hours from within a broad range of hours approved by management is called
flex time
When writing a collection letter
use a friendly tone and ask why payment has not been made
If an insurance company seems to be ignoring all efforts to trace a claim, send a copy of the
history of the account
Netback is a term used to describe
a collection agency’s performance
The part of the legal system that allows laypeople to settle a legal matter without use of an attorney is
small claims
In a bankruptcy case, most medical bills are considered
unsecured debt
Which type of bankruptcy is considered wage earners bankruptcy
Chapter 13
The word ….. comes from a Latin word that means to believe or to trust
credit
The unpaid balance due from patients for services that have been rendered is called
accounts receivable
the relationship of the amount of money owed to a physician and the amount of money collected on the physicians accounts receivable is called the
collection ratio
The patient information sheet is also known as the
Patient registration information form
The patient registration form should be updated at least every
6 months
All discounted fees need to be noted on the patient
financial accounting record
Assets or debts that have been determined to be uncollectible and are therefore taken off (debited) the accounting books as a loss are called
write off or courtesy adjustment
The amount due listed on the patients financial accounting record is also referred to as the account
balance
In the endorsement on the back of the payment check does not match the name on the front, there may be a case of
forgery
The procedure of systematically arranging the accounts receivable by age from the date of service is called
age analysis
The statement, This bill is now 30 days past due. Please remit payment, is called a
dun message
An outside party who takes over the task of preparing and mailing statements is known as a
billing service
The term ….. is used when accounts are billed at spaced intervals during the month
cycle billing
the Truth in Lending Consumer Credit Cost Disclosure requires businesses to disclose all ….. and ….. costs related to granting credit
direct and indirect
A formal regulation or law setting time limits on legal action is know as a
statute of limitations
The maximum time during which legal collection suit may be rendered against a debtor is referred to as an
statute of limitations
According to the FDCPA do not contact a third party more than ….. unless requested to do so by the party or the response was erroneous or incomplete
once
the collection abbreviation TTA means
turned to agency
The collection abbreviation OOT means
out of town
When dealing with managed care contracts, do not sign contracts that use the ….. clause because this is a way for one party to shift financial responsibilities to another party
hold harmless
Patients accounts turned over to a collection agency should have a ….. sent by certified mail
letter of withdrawal
In filing a claim in small claims court the physicians office is referred to as the …..
plaintiff
A patient who owes a balance on his or her account and moves but leaves no forwarding address is called a
skip
In dealing with an estate claim, a call to the ….. can be made periodically to check on the status of the estate
executor
A ….. is a claim on the property of another as security for debt
lien