Deck 16: Patient Accounts, Collections, and Practice Management

Question 1

Which of the following needs to occur when a provider agrees to settle for a reduced fee?

A) Negotiations without prejudice
B) Discount offer in writing
C) Definite time limit for making payment is stated
D) Two copies of agreement with witness signatures
E) All of the above

Answer 1

All of the above

Question 2

To estimate the budget for a new year, the practice should evaluate expenses from the __________ year.

Answer 2

previous

Question 3

Which of the following should be considered when using a collection agency?

A) Net back
B) Fee percentage
C) Fee charged by the collection agency
D) Both A and B
E) All of the above

Answer 3

Net back

Question 4

Which of the following account aging categories requires a final demand letter before the account is turned over to a collection agency?

A) 30-60 days
B) 60-90 days
C) 90-120 days
D) Over 120 days

Question 5

Which of the following does not conform to the general rules for telephone collections? (Select all that apply.)

A)Call only between 8 AM and 9 PM
B)Make repeated telephone calls on the same day
C)Assume a positive attitude
D)Keep the conversation brief and to the point
E)Leave a message at work revealing the nature of the call

Question 6

A system of recording, classifying, and summarizing financial transactions is called

A) bookkeeping.
B) accounting.
C) accruing.
D) depreciation.

Question 7

Which of the following agreements for payment plans is not subject to TILA and does not require a signed Truth in Lending Statement?

A) Specific agreement for less than four installments and finance charge
B) Specific agreement with more than four installments and finance charge
C) No specific agreement with more than four installments and no finance charge
D) Credit card or loan specifically for healthcare treatment
E) All of the above

Question 8

Many healthcare facilities find small claims court a satisfactory, inexpensive means of collecting delinquent accounts. Parties to small claims actions are represented by an attorney at the hearing but may also send another person to court on their behalf to produce records supporting the claim.

A) Both statements are true.
B) Both statements are false.
C) The first statement is true; the second is false.
D) The first statement is false; the second is true.

Question 9

If not handled properly, which of the following can decrease what is owed to the provider erroneously?

A) Payments and adjustments
B) Credit balances and refunds
C) Charges
D) Both A and B
E) All of the above

Question 10

The "cash basis" system of accounting used by most physicians means that

A) credit is used as little as possible.
B) charges are recorded as income at the time they are received.
C) a simple bookkeeping system is used.
D) expenses are recorded at the time they are incurred.

Question 11

Accounts receivable are moneys that are expected but not yet received. All invoices, statements, and operational expenses are included in accounts receivable.

A) Both statements are true.
B) Both statements are false.
C) The first statement is true; the second is false.
D) The first statement is false; the second is true.

Question 12

Which of the following needs to occur when a check is returned from the bank for NSF?

A) The payment posted to the patient account must be reversed.
B) A charge line item must be added with the amount of the NSF check.
C) The original payment must be deleted.
D) Both A and B
E) All of the above

Question 13

Which statement best describes the relationship between bookkeeping and accounting?

A) Accounting is a summary of the activities of bookkeeping.
B) Bookkeeping takes care of all the reporting activities of accounting.
C) Accounting plans the bookkeeping process.
D) Bookkeeping involves the recording activities of accounting.

Question 14

The STARK law imposes restrictions on which of the following?

A) Medicare Advance Beneficiary Notices
B) Professional courtesy
C) Fee for service
D) Billing minors

Question 15

Accounts __________ are debts incurred but not yet paid.

Question 16

When tracing "skips," which of the following is strictly forbidden by law?

A) Check the debtor's place of employment
B) Check the Internet to secure the names of neighbors or landlord
C) Communicate with a third party more than once
D) Call the telephone number listed in the patient account

Question 17

Payments to the healthcare facility come as reimbursement from the insurance company only. Adjustments are made to a patient's account when it is necessary to add or subtract a patient payment from the balance.

A) Both statements are true.
B) Both statements are false.
C) The first statement is true; the second is false.
D) The first statement is false; the second is true.

Question 18

Which of the following are special bookkeeping entries?

A) Credit balances
B) Third-party payments
C) Refunds
D) Both A and B
E) All of the above

Question 19

Which of the following is the most successful collection strategy?

A) Notes
B) Patient account statement
C) Collection letter
D) Telephone call

Question 20

Who is financially responsible for a minor seeking treatment for STD without parental consent?

A) The parent who brings the child in for treatment
B) The legally emancipated minor
C) It depends; the medical assistant must determine where the statement should be sent
D) The minor
E) The legal guardian

Question 21

The purpose of the trial balance is to disclose any discrepancies between the journal and the ledger.

Question 22

The recording of business and accounting transactions is called ______________.

Question 23

The entire property of a person is said to be his or her __________.

Question 24

A record or notation of a transaction is called a(n) __________.

Question 25

Amounts owed to the physician are accounts _____________.

Question 26

In the physician's office, the accounts payable is the amount of money that all patients owe the physician.