question

1. Managed Care contracts 2. Prevailing rate in community 3. Usual, customary, reasonable 4. Third party payers

answer

How are a physician's fee determined?

question

prepaid health care, also HMO/PPO

answer

Managed Care contracts

question

Same specialty, service, and geographic area

answer

Prevailing rate in community

question

Usual fee for service

answer

Usual

question

Range of fees in any given community

answer

Customary

question

When a physician has to more than he usually does, he charges more.

answer

Reasonable

question

Insurance companies/Gov't. (Meidicare)

answer

Third Party payors

question

1. Judgement/Knowledge 2. Treatment/Services 3. Time

answer

What are patients charged for?

question

Physician charges a fee for providing a service.

answer

What does the term fee-for-service mean?

question

Compilation of pre-established fee allowances for given services or procedures.

answer

What is a fee schedule?

question

False

answer

Fixing Fees is legal. T/F

question

A list of normal fees (charges) for services that a fiscal intermediary has and monitors the physician for consistancy.

answer

What is a physician's fee profile?

question

An entity that handles the paperwork for Government sponsored Health Care plans

answer

What is a fiscal agent? (intermediary) Govt. plans only.

question

Yes

answer

Is it legal for a physician to have more than one fee schedule?

question

The average time period for which receivables are outstanding. The average number of days it takes a company to collect unpaid invoices.

answer

What is a collection ratio?

question

The effectiveness of a collections program.

answer

And what does it reveal?

question

The person responsible for paying the bill.

answer

What does the term guarantor mean?

question

So that the patient can prepare for the payment of fees.

answer

What is the purpose of discussing fees with patients in advance?

question

96% will; 4% will not

answer

What percent of patients will pay? Will not?

question

1. Cash 2. Check 3. Credit Card

answer

What are the three forms of payments that a pt. may use to pay their bill?

question

Third party payors

answer

How are the largest proportions of fees paid?

question

Payment required is less than what is normally charged for the particular service. (Must be reflected on pt. account)

answer

What is meant when you adjust a fee?

question

When a physician elects to reduce, adjust, or eliminate fee.

answer

What is meant by the term professional courtesy?

question

1. Reduction in revenues 2. illegal in some cases 3. Some pt. may take advantage of the physician

answer

What is the problem with extending professional courtesy?

question

It can change the fee profile

answer

What are some pitfalls of fee adjustments?

question

To write off a fee for various reasons and remove it from accounts receivable.

answer

What is meant by the term write-off?

question

So everyone in office knows the policy and can offer patients the same information. It aids in the collection of revenue.

answer

Why is it a good idea to have a written credit policy?

question

1. Pay now policy-Pt. must be informed via letter 2. Established pt. need to be informed of credit/billing changes in writing.

answer

What issues should be included in the credit policy?

question

1. Regualtion Z of the Truth-in-Lending Act 2. Fair Debt Collection Act

answer

What laws affect the extension of credit to a patient?

question

Governs anyone who charges interest or agrees to more than 4 payments for a given service, even if no interest is charged. Must include disclosure form, completed, signed, one copy for pat, and one for office.

answer

Regulation Z of the Truth-In-Lending Act

question

2. years after the pt. has made the last payment.

answer

How long must it be kept on file?

question

federal law that states how and when a collector can attempt to collect a debt.

answer

Fair Debt Collections Act

question

1. continuing care implies extension of credit 2. Physician may refer pt. elsewhere for care

answer

Delinquent accounts?

question

1. cuts down telephone calls to office 2. A courtesy to the pt. 3. Less time needed to explain charges 4. Pt. will have a better understanding of charges 5. F/U on delinquent accounts made easier.

answer

Why is it a good idea to itemize the first statement?

question

$8.00 per month, per patient

answer

How much do the experts estimate that the extension of credit costs a medical practice per pt. per month?

question

To eliminate the need for sending out a bill for such a small amount of revenue.

answer

What is the rationale of always collecting the co-payment at the time of service?

question

1. We accept credit cards 2. We accept cash 3. ATM across hall 4. here is a copy of the bill, with a SASE; we should get it in a few days. (Tickler File)

answer

If a patient tells you that they have forgotten their checkbook, how should you respond?

question

Be polite, professional and helpful.

answer

What are the more common rules concerning telephone debt collection?

question

After the appropriate amount of time has passed, contact the executor of the estate, introduce yourself, and obtain the executor's address, so you can send the final bill.

answer

How should you collect a debt from the estate of a patient who has died?

question

Bills are sent out at a given time each month.

answer

What is meant by the term billing cycle?

question

Some people pay their bills one time a month on the 1st.

answer

If your office bills every account at the same time of month, what is the rationale for making sure that the bill is received at the pt. home no later than the 25th of the month?

question

1. Pt. pays in full at time of visit 2. Internal Billing-when extending credit to pt is necessary 3. Internal Insurance-Billing of 3rd party 4. Outside Billing-assistance from collection agency/service

answer

What are the four way that payment for medical services can be accomplished?

question

Helps to flag unpaid bills. Optimal time for collection is 30-60 days from day of first billing.

answer

What is meant by aging accounts?

question

The practices' ability to collects its fees.

answer

What does aging accounts measure?

question

1. Sending an overdue notice to the pt. 2. Telephoning the pt. to let him or her know the account is overdue 3. Informing the pt. at their next office visit.

answer

What are the three most common ways of collecting an overdue account?

question

Schedule the appt., then speak with the physician privately. (Physician must care for pt. until relationship is terminated)

answer

What if a pt. has an overdue account and wants to schedule an appointment?

question

1. Collection Agencies 2. Small Claims court

answer

What are the two most common collection alternatives that a practice may utilize to collect delinquent accounts?

question

1. Pay now-reduce costs to consumer 2. No bills in mail 3. Encourage use of credit card 4. Pt. can avoid collection agency/bad credit rating 5. Good relations are maintained with physician.

answer

Why have advance discussions of fees with patient?

question

The recording and preparing of financial statements for a business. Making reports for determinations.

answer

Accounting

question

An organized and accurate record-keeping system of financial transcations for a business.

answer

Bookkeeping

question

1. Always use black ink; NO pencil 2. Never erase or white-out errors. Draw a single line through, change information, intitial change. 3. Always double-check each entry

answer

What are the cardinal rules of bookkeeping?

question

1. Daily Journal 2. Disbursement Journal 3. Balance Sheets

answer

What are some of the different kinds of financial records?

question

Cash fund kept in the office specifically for small purchases.

answer

What is a petty cash fund?

question

A voucher with an attached receipt should always be placed in the petty cash box.

answer

How is accounting for petty cash accomplished?

question

Explanation and signiture

answer

What must the voucher always contain?

question

Once a month, a check is written in the amount owed to total the vouchers. Cashed and put back in petty cash box. Vouchers are taken out and filed.

answer

How is petty cash fund replenished?

question

General journal-entry made in one place.

answer

What is a single-entry bookkeeping system comprised of ?

question

1. Post in accounts receivable journal 2. Post in general journal

answer

What is a double-entry bookkeeping system comprised of?

question

Assets=liabilities + equity

answer

What is the accounting equation?

question

what the medical practice is worth minus its liabilities.

answer

Assets

question

(AKA pegboard) Uses a board with pegs going down the left side. Pegs hold day sheet and carbon paper is used to create a permanent copy of transactions. (Check goes over register and leaves and imprint)

answer

What is a write-it-once system?

question

Transferring information from one account to another.

answer

What does the term posting mean?

question

Amounts due from others

answer

What are accounts receivable?

question

Amounts owed to others

answer

What is accounts payable?

question

Accounts payable are paid at specific times of the month.

answer

What is the procedure for paying accounts payable?

question

1. Calculator 2. Current day sheet w/ yesterday's previous balance 3. Carbon 4. All ledger cards with transactions on day sheet 5. Pencil 6. Pen 7. Receipt

answer

What items would you need in order to post charges and/or payments using the pegboard system?

question

1. Collection agencies 2. Small claims court

answer

Name two ways to use outside assistance to collect delinquent debt.

question

MA cannot contact the pt. or send out any more bills, once the account has been turned over to a collection agency.

answer

What are the ways you handle Collection Agencies?

question

Physician must be willing to pursue case. A filing fee is required-usually 40-60 dollars. Max amount that can be collected is $5,000.

answer

What are the ways you handle Small Claims Court?

question

Electronic transfer of funds. Payment of bills electronically.

answer

How has the advent of the Internet changed booking?

question

1. provides a permanent reliable record of what was spent. 2. Provides a tax record 3. Conveinence

answer

What are the advantages of using checks?

question

1. Bank Draft 2. Cashier's Check: pay cash to bank to get it. 3. Certified Check: one of your own checks. 4. Limited Check: lists time limitations 5. Money Order: Used to pay bills 6. Traveler's Check: Requires 2 signatures. 7. Voucher Check: one part check, other part detailed information 8. Counter Check: Used to on the counter at banks in order to pay them.

answer

What are the different types of checks and what would be the use of each one?

question

A money order can have no more than two endorsements.

answer

What cautions should you take when accepting a money order?

question

1. Influences money and credit conditions in the U.S. 2. Supervises and regulates banking. 3. Maintains the stability of the financial system 4. Provides certain financial services.

answer

What is the Federal Reserve?

question

The Bank's address. As a fraction.

answer

What does the ABA number on a check represent? How is it printed?

question

First #s: identity/location of the Federal Reserve Bank Second #s: District Third #s: Bank branch address.

answer

First, Second, and Third part of ABA number?

question

Used to read the characters so that the checks can be sorted

answer

What is Magnetic Ink Character Recognition (MICR)?

question

1. Checking 2. Savings 3. Money Markets

answer

What are the different types of bank accounts?

question

The needs of a practice and its billing system may vary according to the size of the practice.

answer

What consideration should be made in establishing a bill-paying system?

question

Fill out check stub first

answer

What is a procedure for writing a check?

question

Draw a line through mistake, or void check. Should be noted on stub of any corrections.

answer

How should corrections be made on a check?

question

1. May be fraudulent 2. My be erroneous 3rd party check 3. May be drawn from a closed account 4. May be drawn for account with insufficient funds

answer

What are some special problems that can arise with checks?

question

1. Check date, signature, correct amount 2. Require ID 3. Check for correct address 4. Must be written for correct amount only. 5. Include a current phone number

answer

What precautions should be taken in accepting a check?

question

Do not accept it. Inform office manager.

answer

What should be done if a check is received with "payment in full" written on it?

question

The signature of the payee on the back of the check.

answer

What is an endorsement on a check?

question

1. Blank-payee signs name only 2. Special-endorse under 1st endorsement 3. Restrictive-"For Deposit Only" 4. Qualified-disclaim liability for further endorser.

answer

What are the four different types of endorsements?

question

1. Reduces oppotunity for the pt. to stop payment. 2. Can run into NSF 3. May have time restrictions on check 4. Courtesy to payor

answer

What is the rationale for depositing checks promptly?

question

1. Current Date 2. ABA# 3. Currency 4. Coin

answer

What is the procedure for preparing a bank deposit? (List the following)

question

A monthly statement to account holders on which are listed transactions since the last closing date.

answer

What is a bank statement?

question

SEE NOTES

answer

What is the procedure for reconciling the bank statement?

question

Legal obligation to pay specific funds; the physician may require MA to be bonded.

answer

What is bonding? Who in the medical office should be bonded?

question

Employers Federal Unemployment Tax Return (FUTA)

answer

Form 940

question

January 31st following the close of the calendar year for which the tax is due.

answer

Must be filed on or before:

question

Declaration of Estimated Tax for an individual (used to file the estimated tax for a physician who is practicing as an individual)

answer

Form 1040 S:

question

Form used by employers to apply for their federal tax number.

answer

Form SS-4:

question

Form used by individuals to apply for a social security number.

answer

Form SS-5:

question

The employer is required to furnish 2 copies of this form to each employee from whom income tax of social security tax has been withheld or from whom income would have been withheld if the employee claimed no more than one withholding allowance.

answer

Form W-2 Wage and Tax Statement

question

Employers file this form to transmit wage and income tax withheld statements (Forms W-2) to the Social Security Administration who will furnish the tax information to the IRS.

answer

Form W-3 Transmittal of Income and Tax Statements:

question

Used to determine the amount of federal income tac to be withheld.

answer

Federal Employer's Tax Guide:

question

Employers who are subject to income tax withholding are required to file on or before that last day of the first month after the end of the quarter.

answer

Employer's Quarterly Federal Tax Return:

question

1998 rate was 6.2% of the first $7000 paid to an employee during the calendar year.

answer

Federal Unemployment Tax Act (FUTA):

question

Yes

answer

I a physician is practicing as an individual is he/she subject to withholding tax?

question

The IRS allows businesses to make payments every three months only if they have less than $2500 in quarterly employment taxes.

answer

What is a quarterly return?

question

If the business had less than $1000 in quarterly employment taxes, they could make payments every three months.

answer

What was the previous rule?

question

Form 941

answer

What form must be filed to make quarterly payments?

question

A Federal Tax return form submitted annually to the IRS

answer

What is an annual return?

question

Taxes that pay for unemployment Insurance.

answer

What are the state unemployment taxes.

question

Program that provides partial wage replacement for workers who are unable to work due to illness, injury, pregnancy.

answer

What is state disability insurance?

question

1. Set up system of regularly scheduled inventory checks 2. Check supply cabinets for outdates medicine, test strips, etc. 3. Check equipment to see if it is in good working order, and that supplies for the equipment are well stocked.

answer

What is the procedure for establishing and maintaining a supply inventory and ordering system?

question

Written authorization for a supplier to ship products at a specified price.

answer

What is a purchase order?

question

1. Date 2. Check Number 3. Amount you paid

answer

When paying an invoice, what information should be on the stub?

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