Chapter 36 Accounts Receivable. ACCOUNTS RECEIVABLE Money owed to the practice/doctor/office bookkeeping must be accurate done by: –Receptionist –Bookkeeper

Chapter 36 Accounts ReceivableChapter 36 Accounts Receivable

ACCOUNTS RECEIVABLEACCOUNTS RECEIVABLE

• Money owed to the practice/doctor/office• bookkeeping must be accurate• done by:

– Receptionist– Bookkeeper / accountant– office manager– Doctor (not very common)

• must keep $$$$ info confidential/private.

Patient FeesPatient Fees

• Fee schedule– The doctors list of prices for TX.– Varies from Dr to Dr– not related to Ins. Co. Schedule of Benefits

• what Ins Co. is willing to pay for TX.

• If Dr charges more than Ins. Co pays, the Pt. is responsible for the difference.

• Determined by UCR

UCR = Usual, Customary, UCR = Usual, Customary, Reasonable feeReasonable fee

• Usual fee:– Fee typically charged for a specific procedure.– Majority of dentists charge this amount.

• Customary fee: – Average of what Dr’s in your area charge for

the same procedure.– Different $$ for different parts of town.– Difficult / complicated Tx

UCR = Usual, Customary, UCR = Usual, Customary, Reasonable feeReasonable fee

• Reasonable fee– Midrange or average fee.

– Not the lowest price

– Not the highest price

• Discounts– Amount subtracted from a fee.

• Professional courtesy

• Senior

• Cash paying customers/patients

• only taken off TX today, not balance forward.

Management of patient accountsManagement of patient accounts

• Keeping track of:– TX given.

– Cost of the TX

– Amount paid by Pt.

– Amount paid by Ins.

– Any discounts

– Status of the account. • ( Current or past due.)

Management of patient accountsManagement of patient accounts

• Can be done:– Manually

• with a Pegboard system.

• Pencil and paper.

– Computerized • more common today.

• Faster, less errors.

Manual bookkeeping.Manual bookkeeping.

• Pegboard system

• AKA– write-it-once– NCR = no carbon required


• Consists of:– Day sheets, – Charge slips, – Ledger cards – Receipt forms

• All forms are aligned on a board with pegs so info is only written once.


• Day sheet– Record of all charges , payments, and

adjustments for the day.• Charges, payments and adjustments, are all

considered ‘financial transactions’

• Charge slip– Record of all services provided to a pt. today.

• Treatment and cost.


• Ledger card– One per family

– Lists all costs for all family members who had treatment this month.

– Patients are billed from the ledger card.

– The total amount due and owing will be the final or last amount in the balance column.

• Receipt form– Provided to the patient as proof of payment for services


• End-of-the-month balancing– All day sheets for the month are added up.

– All patient ledger cards are added up.

– Totals should be equal. If not, error needs to be located and corrected.

Computerized bookkeeping Computerized bookkeeping

• Contains all info about patients.– Name– Address– Phone numbers– Insurance info– Responsible party

• (person responsible for paying the bill.)

Computerized bookkeepingComputerized bookkeeping

• Ledger, keeps track of:– All visits– Procedures– Missed appointments– Discounts for family members– Automatically updated:

• Posts charges.• Calculates patients balance.• Calculates accounts receivable balance.

– Can be printed or viewed on a monitor.

Monthly billingMonthly billing

• Patient statements– Mailed 1x per month– Is a request for payment in full.

• Most send the minimum

• Can charge a finance charge.

• Must inform / disclose to the patient

• Return envelope may be included.

Payment optionsPayment options

• Financial arrangements– Made before treatment– Must be signed by the patient– Patient gets a copy.

• Payments may include:– Some $ down, smaller monthly payments– No $ down, larger monthly payments– Payments coincide with tx appointments.


• Credit report– Provided by the credit bureaus

• Experian

• Equifax

• Transunion

– Lists • Loans

• Credit cards

• Repayment history


• Cash– Most pt’s do not pay with cash.– Should be able to make change.

• Petty cash

– May receive a “cash” discount– A receipt must be given.


• Checks– Personal: most common payment method– Certified: bank verifies check is good.

• Tele-check or Veri-check machine

– Cashiers: guaranteed by the bank to be good• Must be bought from the bank• Cannot bounce.

– Travelers: specific denominations (5’s, 10’s)• Replaced if lost or stolen. Treated like cash.


• Credit cards– VISA– MasterCard– Discover– Health care card

• Can only be used for medical and dental purposes.

– Credit card transactions are not deposited with cash and checks.

• Done electronically @ end of day or week.


• Debit = money subtracted from an account– Example: when you use your debit card or

write a check that money is taken from your account.

• Credit = money added to an account.– Example: you were charged for the same

treatment twice. We would add the money back to your account.

ClosingClosing

• Accounts receivable is a very important part of the duties of the front office.

• If there is no money coming in, you cannot pay accounts payable. (your paycheck)

• Remember attention to details is very important, accuracy matters. When in doubt ask for help.

• Any Questions????????

Documents

Chapter 36 Accounts Receivable. ACCOUNTS RECEIVABLE Money owed to the practice/doctor/office bookkeeping must be accurate done by: –Receptionist –Bookkeeper