Collections

Outline

  1. Collection process………………………………………….….……….….……….3

    1. Introduction……………………………………….……..…..…….……….3

    2. Patient billing and collections process……….……………..…..….……….3

      1. Elements of the collection process…….…………………..……….3

      2. Billing criterions………………….………….……..…….…….….3

  2. Effectiveness of the collection process…………………………..…………….….3

    1. Cycle billing ……………………………………………………………….3

    2. Guarantor approach………………….………………………….…..…….3

  3. Suitable collection process………………………………………………….…….3

  4. Improvements………………………………………………..….…….………….3

  5. References…………………………………..….………………………..……….5

Collection

Thecollection process is a fundamental aspect of the healthcare system. An efficient collection process must inform the patients about thebilling and the reimbursement procedure from the start. The elementscontained in the process can outline the effectiveness of thecollection. It includes the patient billing and collections processwhich generate and emails statements showing patient balances. Italso describes the patient’s payment and aging reports. The patientreports indicate the services being provided and the total charges.They have a printed patient bill of the amount owed. The aging reportcontains the patient’s information regarding recent payments andbalances. It begins on the date that the bill starts to accumulate.

Thebilling criterion is also an essential component of the collectionprocess. The billings can be on cycle billing or a guarantorapproach. The cycle billing categorizes patients according to theircurrent balances. The guarantor approach classifies the patientbilling under insurance policyholder and sends it to the owners underone statement. Both methods are effective. For cycle billing,patients are standardized in one category in weekly or monthly basis.In this manner, the patients are made aware of the bills in time. Theguarantor mechanism also reduces the amount of time spent on billing.It also reduces the costs.

Asuitable collection process must maintain a balance betweengenerating cash flow and patient satisfaction. This can be achievedthrough effective payment options. Therefore, the facility should beable to check the accounts of each patient to determine credits thatcould be transferred. In the process, they would get the patients topay any impending bills. Before administering care, the facility mustalso outline the consequences of late payments and the timelinesinvolved. Once the accounts are handed over to collections, patientswould have to face penalties to remove their names.

References

Scroggins, R. (2014, November 20). Collecting patient bills: When to use a collections agency. Retrieved July 7, 2016, from Collecting patient bills: When to use a collections agency: http://medicaleconomics.modernmedicine.com/medical-economics/news/collecting-patient-bills-when-use-collections-agency?page=full