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CPAs4MDs Guide to Practice Management and Internal Control
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Tracking Accounts Receivables
The physicians Patient Income System Questionnaire should be completed yearly and reviewed by the practice administrator periodically to ensure that all open items are followed through.
On a monthly basis the practice administrator should obtain and review the Aging of Accounts Receivables Report with the physician to review all outstanding accounts receivables which are 60 days past due and need follow-up action.
We recommend that no more than two bills, after 15 and 30 days, be mailed to the patient to minimize handling and postage costs. Experience has shown that mailing repeated past-due notices is not as effective as telephone contact.
All private, self-pay accounts receivables between 30 and 60 days are to be contacted
by telephone. A systematic telephone call program is to be established with the proper notation indicated by
the contact person. An effort should be made to obtain some sort of payment from the patient. Simple telephone calls to
patients with past due accounts can produce immediate and positive results. Although most employees are as uncomfortable
making collection calls as patients are receiving them, the techniques
presented in our brochure (for more information)
can be used to ease this difficult situation.
Each month, the medical office's effectiveness at collecting charges should be measured. To do so the following should be calculated:
The Colection Percentage - This is a moving average compilation that measures the office's ability to collect what it bills. (For more information.) Medical practices should strive for a collection percentage of 90% or higher. A lower percentage may indicate failure to collect payment at time of service and may mean that insurance claims have been rejected or disputed.